Page 42 - Real estate: a guide for buyers and sellers
P. 42
Real estate: A guide for buyers and sellers
After the sale, several steps take place Checking the measurements
before the buyer takes possession of The buyer’s legal practitioner or conveyancer
the property. The legal practitioner or will send a plan of the land to the buyer to
conveyancer usually undertakes these check all measurements and boundaries
steps if acting on the buyer’s behalf. correspond with those on the title.
Before taking possession Lender’s valuation
The buyer’s lender may also arrange for
The deposit a property valuation. As they are lending
The deposit is generally paid by the buyer against the value of the property, the
to the seller’s agent. This happens either lender will want to ensure that the price
when the buyer makes their offer or by paid for the property corresponds with
the date stated in the contract of sale. its approximate market value. If it doesn’t
The deposit is held by the seller’s agent, the lender may refuse to provide finance.
conveyancer or legal practitioner, in a trust The buyer generally obtains pre-approved
account, until settlement. finance before making an offer for a
property or bidding at auction.
A seller who does not have an agent and
who receives a deposit must pay it to Insurance
their legal practitioner or conveyancer, Even though the property may be covered
or bank it in a special purpose account by the seller’s insurance up to the date of
in an authorised Victorian deposit-taking settlement, buyers should consider taking
institution. The account must be in both out building and contents insurance
the seller’s and the buyer’s name. effective from the date of signing the
contract. The buyer’s lending institution
In certain circumstances, the buyer may will generally require this to safeguard the
release the deposit money to the seller lending institution’s interest as the lender.
before settlement. In this case, the contract
must have become unconditional and the Pre-settlement inspection
buyer must be satisfied with the proof of Buyers are entitled to inspect the property
debts information – that is, a statement at any reasonable time one week before
by a seller detailing any mortgage or any settlement. The contract of sale outlines
other loans relating to the property. When the seller’s obligation to hand over the
this occurs, the deposit can be released property in the same condition as when it
no earlier than 28 days after the date the was sold.
contract was signed.
42
