Frequently Asked Questions
Both the seller’s and the buyer’s signatures are required to be witnessed. No strict legal requirement for signatures to be witnessed but recommended that the signatures be witnessed by an independent party.
Buyers can tell their solicitors that finance is approved at any stage and do not need to wait for any type of confirmation from their bank. Wise buyers will always wait until they have received a letter from their bank for confirmation or an offer to provide finance. Once the solicitor has been informed that finance has been approved, the buyer cannot pull out of the contract.
Body Corporate is a management committee for a set of units. This is an agreement between each of the unit owners in the complex. Sets out the rules and what could be done in the future. A Body Corporate is like a company in which each unit owner is a shareholder.
Tax levied by the State Government on the transfer of assets. Pay to the State Government based on the market value of the property. The State Government ensures that you pay the stamp duty by refusing to register the property transfer into your name before the stamp duty is paid. Therefore, solicitors require you to pay the amount of stamp duty to them before the settlement date.
Refers to the purchase of unregistered land or the purchase of a lot in a strata scheme that does not exist at the time the contract is signed but which is expected to come into existence upon registration of a plan. You are purchasing the property based on the plans, schedule of finishes, and other information that the Setter has disclosed.
Before the lender offers you unconditional approval, they will send an independent professional to value the property. Lenders do this because they use your property as security for the loan. Sometimes the valuer may estimate the market value of the property as lower than the purchase price.
Let’s look more closely at some scenarios where this may happen:
∙ When you’re buying an off-the-plan apartment, it’s a good idea to remember that the lender is only able to value the finished property
∙ Completion may be well over a year after you sign the contract and pay the deposit. There is a risk that property values in the area may change over the construction period. The bank valuation may be higher or lower than your purchase price if they do
∙ If you’re buying unregistered land a similar situation may occur in new estates when developers offer unregistered land for sale
It may take several months for the developer to build the infrastructure necessary to register the land. In his case, the lender will need to reassess your application before settlement. Over the time since you paid your deposit, values in the area may have changed, resulting in a valuation higher or lower than your purchase price
Valuers predominately go off historic sales for comparison. This can be difficult to achieve in new developments. Also, banks vary in their valuations standards, which may result in one bank valuing your property at a higher or lower value than other banks. If this occurs, Calla Property and your Mortgage Broker will work together to challenge the valuation or order a new one.
If the purchase is an off-the-plan property, the date provided for completion at the presentation is an estimate only. Registration can be delayed by Council and civil works for several reasons, like releasing a high volume of land titles at the same time, along with a high number of builders submitting multiple titles for allotments for master plans at the same time. Calla Property, Builders, and Developer have no control over any council delays.
For house and land purchases, the construction period is noted in the building contract. However, the construction period can also be delayed by things like the weather, material orders, supply issues, etc.
If the completion of the build goes over this period, the builder is committed to paying damages for late completion of the Building Works and damages for delays. Refer to your build contract & Solicitor.
The Practical Completion Inspection (PCI) is one of the most important inspections during the construction process as it is a chance to identify any faults of the property and get them fixed before the handover. The PCI process is for you to appoint an inspector to meet the builder and together they go through the house, room by room, discussing key features and inspecting everything to ensure it looks and works as it should. Any items that require attention are recorded for the builder to action and both parties sign off on these items.
The Builder has a contractual obligation to repair these minor defects by organising trades and suppliers to return to the site and complete the defects, usually within 10-14 working days, so handover can occur as soon as possible. This could be extended if there are a lot of defects still to be addressed. To ensure all defects are completed satisfactorily, your property manager can attend the property and go through all the items listed on the PCI 1 checklist and confirm they have been rectified.