Tag: Valuation Report

Protecting Your Property Transfer Investment

 

Have you considered the necessary steps and due diligence you can undertake to protect your Property Transfer Investment, whether it is your First Home Purchase, Second Property Purchase, or if you are a regular Property Investor?

We are going to outline over a series of our blogs. – We want to make sure you have everything covered when investing hundreds of thousand of dollars in your Property Investment!

Today we are going to cover Step 1.

STEP 1

Once you have found the property that fits your needs and requirements, the Real Estate Agent will prepare the Sale and Purchase Agreement with your specified conditions and arrange negotiation with the Vendor directly.

 This will not be the case if you are purchasing Privately.

 The Contract may go backwards and forwards between the parties until agreement is met on the terms and conditions together with the agreed price.

 You should have your Agreement checked thoroughly prior to signing to make sure the conditions have been worded correctly and protect your interests.

 More importantly the conditions should cover the 6 “W” s.

v   What needs to be done?

  Who’s going to do it?

  Who is going to pay for it?

  When does it need to be done by?

  What is going to happen if something is discovered?

  Who is going to pay to fix it and by when?

 OUR RECOMMENDED CONDITIONS

  1. Conditional upon you obtaining and being satisfied with a Registered Valuation Report.
  2. Conditional upon you obtaining and being satisfied with a Builders Report.
  3. Conditional upon you inspecting and being satisfied with the property file held at the local  Council.
  4. Conditional upon your Conveyancing Practitioners approval of the Title and encumbrances. This is especially important when purchasing a property that is a Cross Lease Title. We need to make sure the Flat Plans shows the correct dimensions of the dwelling and also that there have been no alterations that would change the dimensions.
  5.  You can even order a Title Search from us directly online.               http://www.propertyconveyancingservices.com/online-title-      search-request-form.html
  6. Conditional upon you obtaining and being satisfied with a Land Information Memorandum.
  7. Conditional upon the sale of the property (address) for an amount and on terms and conditions satisfactory to you.
  8. Conditional upon you obtaining Finance Approval sufficient to complete the purchase and on  terms and conditions satisfactory you.
  9. The Vendor will at his cost arrange for a  commercial cleaner to clean the interior of the house  and have the carpets commercially cleaned prior to settlement date.
  10. A warranty from the Vendor that the dwelling and property including the lawns, gardens and  surrounds will be left neat and tidy at settlement.
  11. Details from the Managing Agent of the Tenant so we can make provision for adjustment of  any rent on settlement and transfer of bond.

Time frames will need to be specified – it may be best to have all conditions due on the same date. But sometimes it may not work out that way.

 There are many other conditions available and if you need more information email kim@propertyconveyancingservices.com.

 ENSURE ANY DEPOSIT THAT IS TO BE PAID IS UPON THE AGREEMENT BECOMING UNCONDITIONAL.

 Stay posted for Step 2

Cheers Kim :)

 

Conditional Agreements

April 14, 2010

Property is being purchased and sold on a daily basis. Unfortunately many people do not understand the legal terminology used when a Contract is being drawn up on their behalf. In this article we are going to explain in plain English the legal terminology of what a Conditional Agreement is.

Conditional

When you enter into an Agreement for Sale and Purchase is will be made subject to certain conditions which need to be satisfied by either the Vendor or the Purchaser.

Examples of these conditions are

1.Subject to the Purchaser obtaining Finance on terms and conditions acceptable to the Purchaser. This may also include the amount of funds and the name of the Lender.
2.The sale of another property.
3.A Valuation Report.
4.A Builders Report.
5.Land Information Memorandum or
6.The Vendor obtaining a Code of Compliance for an illegal structure.

These are but to name a few.

The emphasis is that both parties will have a legal obligation to take all necessary steps to ensure their conditions can be met and confirmed making the Contract conditional upon the terms specified.

If for any reason either party were not in a position to satisfy any of the conditions there is generally a provision allowing either party to cancel the Agreement or negotiate on further terms.

Ensure you read the fine print in the Agreement as these also form part of your obligations. It is highly recommended you consult with a Conveyancing Practitioner prior to signing any Agreement to ensure your interests are protected. This is part of your own due diligence.

It always pays to be safe rather than sorry later.

Again we would love your feed back and let us know if the information we are providing is of value or if there is a topic you wish us to cover. :)

Lease purchase

October 13, 2009

What is a lease purchase – A Tenant and Landord may enter into an Agreement whereby the Tenant may in the future wish to exercise an option to purchase the home they are renting. Terms of the Agreement will vary depending on the requirements of the Tenant and Landlord- some negotiation will be involved. Here are a few examples of some conditions to the Agreement:

1. Is the price to be set at current market value or the value at the time the option to purchase is exercised. We would highly recommend that the price set is by a Valuation Report. An independent Valuer would also be recommended.

2. Will any rents paid by the Tenant between the date  the Agreement is signed and the date at which the option to purchase is exercised be applied towards the purchase price by way of deposit.

3.  Generally a deposit will be payable to the Landlord which may or may not be refundable depending on the terms of the Agreement as security to secure the Agreement and the Terms. This can also be referred to as the option payment.

4. Should the Tenant’s interests be protected? Absolutely, this would be by registering a caveat against the property in accordance with the Agreement.

Happy Purchasing Kim

Albizia Theme designed by itx