You have found your dream home, and you visit your solicitor for his advice on the purchase. The solicitor’s aim is to ensure that your expectations are going to be matched by the terms of the contract and the vendors (sellers) obligations. The solicitor must receive full instructions to be able to provide the correct advice.
A plan must be included in the contract, and whilst it may seem obvious, it’s a good idea to make sure you are buying the same property that you have been driving past slowly for the last week. The survey report will, if available, show the position of improvements on the land.
The contract will list inclusions that are being sold with the land. These are known as chattels. The s149 certificate is attached to the contract and details the zoning of the land and specifies what purposes the land can be used for. If you have any particular intentions for the property, for example to conduct a business or construct a second dwelling, raise this with the solicitor so planning instruments at the Council can be checked.
Use of the land such as physical access to the property, and services such as sewerage are checked. An example would be if your sewerage connection could be on a neighbouring property. This could be a problem if there were no easement in place to allow access. Whilst you can get access to services such as sewerage, power and phone through the Court you don’t want to be forced to take such action.
Issues such as these have to be addressed at this point. There is a clause in the contract which states that there is no redress against the vendor after exchange of contract.
Although it is usually the case that a person’s principal place of residence is exempt from Capital Gains Tax that is not always the case. Once again, ask your solicitor.
Next week we will discuss the importance of ensuring that finance is available.
If you have any questions you would like answered either confidentially or via this medium, please email us at office@mjolegal.com.au
This is intended for general information and does not constitute legal advice and should not be relied upon as such. Formal legal advice should be sought.