BUYING PROPERTY IN WOLLONGONG

Step 1

The first step to buying a property is to contact a mortgage broker and obtain finance approval. When assessing the price you can afford to pay for a property, it is important to factor in your stamp duty liability, loan amount, legal fees and any potential land tax liability. 

Step 2

The next step to buying a property is doing research. By attending open homes and auctions, you should gain a better understanding of property values and trends, and which key features you need your potential property to have. 

Step 3

Once you have found a suitable property, contact our office. We will review the contract, negotiate more favourable conditions for you, and then explain the contract to you. 

If you are purchasing a strata property, we highly recommend ordering a strata report. We can review and provide you advice on the strata report. 

If you are purchasing a house, we highly recommend ordering a building report and asking any questions you have to the inspector directly.

If you want further piece of mind, you may consider purchasing title insurance. 

Step 4

The next step is to make an offer to the agent, and if your offer is accepted, sign the contract. The agent or vendor’s legal representative will then arrange for the vendor to sign the contract. Once both contracts are signed and dated, they are exchanged.

If you are however planning to bid at auction, then each bid you make will be an ‘offer’. If you are the winning bidder, and your bid has passed the reserve, then you will sign the contract at the auction. The agent will then arrange for the vendor to sign the contract. Both contracts will then be dated the date of the auction and exchanged.

Step 5

Once contracts are exchanged, you will need to advise your mortgage broker and provide him with a copy of the vendor’s signed contract. We will make enquiries with the relevant council and water authorities to obtain the most up to date rates. We will also provide you with documents to sign, certify your identity documents, and provide you with a summary letter outlining the important dates and information.

Step 6

Prior to the settlement date, we will provide you with settlement figures for your approval, outlining adjustments for rates, and the amount required by you to complete settlement. We will also provide you with a copy of our invoice, which will be factored into the settlement figures for payment on settlement.

Step 7

Settlement will take place electronically on PEXA. Once settlement has been completed, we will inform you and the agent so you can collect the keys from the agent. We will also provide with another summary letter with all the relevant paperwork you will require for future reference.

A section 66W certificate is a certificate we issue when a purchaser signs a contract to waive the cooling off period, thereby you will not have the benefit of a cooling off period. The contract will therefore become unconditional on exchange of contracts.

As a purchaser, it is essential that you are satisfied that you will have the financial capacity to pay the deposit, the balance of the purchase price, stamp duty (unless exempt), legal fees and registration fees before signing a contract.

When a purchaser signs a contract, and we have not provided a section 66W certificate on your behalf, you will have a period of time to decide whether you will complete the purchase. A cooling off period is usually 5 or 10 business days, depending on what is agreed with the owner. A cooling off period is only for the benefit of a purchaser.

During the cooling off period, your bank may provide you with formal approval of your loan. It is important to advise us during the cooling off period if you are unable to obtain formal approval and/or satisfy yourself that you will be able to financially complete the purchase, otherwise the cooling off period will lapse and you will be legally bound by the contract. 

Should you decide you no longer wish to proceed with your purchase during the cooling off period, you will need to notify us immediately, so we can rescind the contract on your behalf and forfeit your 0.25% deposit to the vendor.

'Exchange' or 'exchange of contracts' refers to contracts being dated after they have been signed by both the vendor and purchaser. Once contracts are exchanged, the vendor and purchaser are bound by the contract, subject to any cooling off period, enabling the purchaser to resend during the cooling off period and forfeit, their 0.25% deposit to the vendor.

Purchasers are required to pay a deposit when they sign a contract. 

If there is a cooling off period, a 0.25% deposit must be paid when signing the contract, with the balance of the deposit to be paid prior to the expiry of the cooling off period.

If there is no cooling off period , the deposit must be paid in full when signing the contract.

If there is a selling agent, the deposits must be paid to their trust account.

Once the vendor (owner) and you have signed the contract, you will need to pay the deposit to the selling agent's trust account, then the agent or vendors solicitor will date the contracts i.e. 'exchange' contracts. 

Once contracts are 'exchanged', the vendor and purchaser are bound by the contract, subject to any cooling off period, enabling you to rescind during the cooling off period and forfeit the 0.25% deposit to the vendor. 

When contracts are unconditional, this means contracts have been exchanged, and the purchaser does not have the benefit of a cooling off period, as either:

a) a 66W was issued by their solicitor/conveyancer on exchange i.e. when contracts were signed by both parties and dated, or

b) the purchaser's cooling off period has lapsed.

If you are purchasing a property, you should only sign a contract once you are satisfied that you will have the financial capacity to complete the contract. If you are exchanging unconditionally, I.e. you have asked us to issue a 66W certificate to waive your cooling off period. It is also important to be satisfied with the outcome of the strata or pest and building report. 

If you are exchanging on a cooling off period, the contract terms can be negotiated and the strata report or pest and building report can be ordered and reviewed during this time, in addition to the bank providing you with formal approval. You thereby have more time to satisfy yourself with the outcome of the contract review, relevant reports and bank approval.

At auction, the successful bidder is legally required to sign a contract and pay a deposit on the day of the auction. You will not have the benefit of a cooling off period. Prior to auction, you will need to register with the selling agent. It is important you are satisfied you will be able to complete the purchase prior to bidding, which may include ensuring you have finance approval. During the auction, you bid to purchase a property for a certain price. When bidding, it is important to consider that stamp duty (unless exempt), legal costs and registration fees will be payable in addition to the purchase price.

What should I look for when inspecting a property to buy?

When inspecting a property, there are many important factors to consider. This includes but is not limited to: location including road noise and access to public transport and schools and shopping centres, the quality of the Tapware and appliances included in the sale, cracks or water damage in the walls and ceilings, quality of flooring including any scratching and wear and tear, quality of light fittings, amount of natural light coming into each room, usability of the property for your intended purpose, layout of rooms, potential for renovation, quality of cabinetry particularly in the kitchen and bathrooms, repairs required, illegal works, and common areas including stairways and balconies and any other shared facilities (if strata).

When considering buying a house, Conveii always recommends you order a pest and building report. An example of the importance of ordering a pest and building report is:  if the house has a history of termite issues and the roof requires replacement, this significant cost is important to consider when determining the price you should pay, and whether the purchase is financially viable for you. We do not review or provide advice and pest and building reports, and we recommend you make inquiries directly with the inspector (as they are the experts in the field).

When considering buying a strata unit or townhouse, Conveii always recommends you order a strata report. A strata report is arguably the most important document, when deciding whether to purchase a strata unit or Strata townhouse. An example of the importance of a strata report is: if there are special levies of $50,000 for the unit you are intending to purchase, this significant cost is important to consider when determining the price you should pay, and whether the purchase is financially viable for you.

It is important to find a mortgage broker who can provide you with the most suitable loan and best interest rate for your property purchase, from a reputable lender. Conveii is happy to assist in recommending reputable mortgage brokers, as we deal with mortgage brokers on a daily basis.

Stamp duty is payable on the purchase of property in New South Wales, subject to any exemptions for first home buyers.

Stamp duty must be paid on or before settlement to enable the settlement to be completed.

Stamp duty is payable at the following times:

a) On the earlier of settlement and three (3) months from the date of the contract.  

b) If you are purchasing an off the plan property AND you are NOT intending for it to be your principal place of residence OR it is vacant land (regardless if you intend for it to be your principal place of residence or not), then stamp duty is payable three (3) months from the date of the contract.

c) If you are purchasing an off the plan property AND your intending for it to be your principal place of residence AND it is not vacant land, then stamp duty is payable fifteen (15) months from the date of the contract.

Please note: If the settlement date is after stamp duty is due, then you will need to pay stamp duty on or before it is due, otherwise you will be liable to pay interest on and in addition to the stamp duty owing.

Stamp duty is calculated on the purchase price of the property.

NSW Revenue provide a useful calculator to determine your stamp duty liability available at the following link: https://www.apps09.revenue.nsw.gov.au/erevenue/calculators/landsalesimple.php

If you are purchasing the property from a related person, stamp duty is calculated on the higher of the purchase price of the property and an independent valuation (no more than 3 months old when stamp duty is assessed). The meaning of ‘related person’ can be found at the following link: 

If you are not an Australia citizen, surcharge (additional) stamp duty may be payable and we recommend you contact NSW Revenue to satisfy yourself whether you would be liable for this surcharge (additional) stamp duty.

Conveii always recommend you order a strata report. A strata report is arguably the most important document, when deciding whether to purchase a strata unit or Strata townhouse.

An example of the importance of a strata report is: if there are special levies of $50,000 for the unit you are intending to purchase, this significant cost is important to consider when determining the price you should pay, and whether the purchase is financially viable for you.

A strata report usually outlines strata levies, special levies, building insurance, fire, safety compliance, history of works in the building, history of legal proceedings, upcoming proposed works, copies of minutes of meetings etc.

A strata report usually outlines strata levies, special levies, building insurance, fire, safety compliance, history of works in the building, history of legal proceedings, upcoming proposed works, copies of minutes of meetings etc.

A strata report is arguably the most important document, when deciding whether to purchase a strata unit or Strata townhouse. For example, if there are special levies of $50,000 for the unit you are intending to purchase, this is important to consider when determining the price you should pay, and whether the purchase is financially viable for you.

Strata reports are often a few hundred pages long and can be difficult and time consuming to read. 

A strata report usually outlines strata levies, special levies, building insurance, fire, safety compliance, history of works in the building, history of legal proceedings, upcoming proposed works, copies of minutes of meetings etc. 

A strata report is arguably the most important document, when deciding whether to purchase a strata unit or Strata townhouse. For example, if there are special levies of $50,000 for the unit you are intending to purchase, this is important to consider when determining the price you should pay, and whether the purchase is financially viable for you.

We will review strata reports and provide you with advice which will be billed at our hourly rate. 

A strata report is arguably the most important document, when deciding whether to purchase a strata unit or Strata townhouse. 

We charge a fixed fee for reviewing and providing advice on a strata report. Please contact us to enquire on our fees.

We charge a fixed fee for reviewing and providing advice on a strata report. Please contact us to enquire on our fees.

A strata report will generally cost between $200-$350 and will often cost more for large Strata buildings.

You can order a strata report online, or request us to do so on your behalf (fees apply). Should you wish to order a strata report directly from Strata Inspector,  Conveii is happy to assist in recommending reputable strata inspectors, as we deal with strata inspectors on a daily basis. 

A strata report will generally cost between $200-$350 and will often cost more for large Strata buildings. Conveii is happy to assist in recommending reputable strata inspectors, as we deal with strata inspectors on a daily basis.

You can order a strata report online, or request us to do so on your behalf (fees apply). Should you wish to order a strata report directly from Strata Inspector,  Conveii is happy to assist in recommending reputable strata inspectors, as we deal with strata inspectors on a daily basis. 

We charge a fixed fee for reviewing and providing advice on a strata report.  Please contact us to enquire on our fees.

You can order a strata report online, or request us to do so on your behalf (fees apply). Should you wish to order a strata report directly from Strata Inspector,  Conveii is happy to assist in recommending reputable strata inspectors, as we deal with strata inspectors on a daily basis. 

A strata report will generally cost between $200-$350 and will often cost more for large Strata buildings. Conveii is happy to assist in recommending reputable strata inspectors, as we deal with strata inspectors on a daily basis.

We charge a fixed fee for reviewing and providing advice on a strata report. Please contact us to enquire on our fees.

Conveii always recommends you order a pest and building report when purchasing a house when deciding whether to purchase. An example of the importance of ordering a pest and building report is:  if the house has a history of termite issues and the roof requires replacement, this significant cost is important to consider when determining the price you should pay, and whether the purchase is financially viable for you.

A pest and building report usually outlines what measures are in place to deal with pests, provides recommendations on what measures should be taken, outlines issues with the building, and provides recommendations on what measures should be taken to fix those issues.

A pest and building report will generally cost between $500-$800.

We do not review or provide advice and pest and building reports, and we recommend you make inquiries directly with the inspector (as they are the experts in the field).

Settlement refers to the transfer of money and Legal documents to effect the transfer of a property title from the vendor to the purchaser.

On the day of settlement, we will access the PEXA settlement platform to ensure the necessary funds and legal documents are ready for the scheduled settlement time.  Once the funds (usually provided by the bank) and legal documents are prepared and ready for settlement, settlement will begin at the scheduled time. 

Settlement usually takes place between 12pm and 2pm on business days and takes approximately 30 minutes to be completed.

Funds are usually dispersed on the same day as settlement, and in accordance with the agreed settlement adjustments (provided to you prior to settlement for your approval). 

Once settlement has been completed, we will let you know so you can collect your keys to the property from the selling agents office.

We charge a fixed fee for reviewing, negotiating amendments, requesting information about the property, and providing legal advice on the contract for the property you are intending to purchase. We charge an hourly rate for any additional work required to complete your purchase. Please contact us to enquire about our fees.

Our legal fees are payable on settlement and will be included in the final settlement figures provided to you prior to settlement. If you are unsuccessful with your purchase, our legal fees are payable immediately thereafter.

When purchasing a property, it is essential that we review the contracts and the strata or pest and building report prior to contracts becoming unconditional. 

To keep your legal costs to a minimum, we recommend purchasing a property on a cooling off period, thereby you have an agreement on a sale price with the vendor. the contract terms can be negotiated and the strata report or pest and building report can then be ordered and reviewed during the cooling off period, in addition to the bank providing you with formal approval. Thereby, you have more time to satisfy yourself with the outcome of the contract review, reports and bank approval. 

If you are intending to purchase a property at auction, there will be no cooling off period and so it is essential that we review the contract and strata or pest and building report, and that you have finance approval before the auction date. It is unlikely that a vendor would agree to exchange contracts on a cooling off period if the property is going to auction however this can be discussed with the selling agent if you intend to make an offer prior to auction.