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LEVEL 7, NO.1 CHANDOS ST |
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BSS Personal Legal Services: BUYING PROPERTY Buying a property is one of the most important transactions in your life. Why make a decision without knowing all the facts? Set out below are 10 things you should know when deciding who to choose to help you with the purchase of property. These 10 points make reference to over 100 ways that Bull, Son & Schmidt can help you through the complications involved in buying a property. 1. Can "disasters" happen if you don't choose the right lawyers? 2. Do you need to understand how the conveyancing process works? 3. Won't using any "lawyer" give the same result? 4. At Bull, Son & Schmidt who does the work? 5. Our experience - how it helps you. 6. What do we actually do as part of the conveyancing process? 7. Where does Bull, Son & Schmidt fit in the range of legal costs in the market place? 8. Where do legal costs fit in the big picture of costs when buying property? 9. What additional benefit do you get? Schedule 2 - Possible Disbursements 1. Can "disasters" happen if you don't choose the right lawyers? Yes. In the last couple of years, we have seen examples of people paying money to fix mistakes made because they didn't use the right lawyers. To give a few examples, people have - • Exchanged contracts to buy the wrong property; • Bought a property without knowing it had easements and other restrictions affecting it; • Signed contracts which require them to contribute to the seller's land tax; • Bought properties that have major structural problems because they didn't carry out the right investigations before auction. All of these problems could have been avoided if Bull, Son & Schmidt were involved in the purchase transaction from the beginning.
Yes. That's why we prepared a Guide to Buying Property - a booklet which helps you to understand how and when things happen, what searches you need and much more. It also gives you a better understanding of the processes involved in the purchase of property so that you can be more confident in your dealings with agents, banks and others involved in that process. To get this advice would normally cost you hundreds of dollars. As part of our service, as well as providing the guide to buying property we offer and recommend a face to face meeting so you can ask all the questions you can think of and we can get a feel for your requirements.
No. Different law firms have different approaches to conveyancing. If you shop around on price you can find some law firms which are "cheaper" for conveyancing than other law firms - by $50.00, $100.00, sometimes even $200.00 or more. You should look behind that price to see what you are getting for your money. Our guess is that the firms which advertise the lowest price probably have minimal solicitor input - the cheaper price is often brought about by having inexperienced junior, non-qualified staff working on your transaction. You must make a decision if that is what you want for the most important transaction of your life.
We have struck a balance between professional and staff input so that our lawyers ensure your interests are protected. We review your contract, negotiate amendments, explain the contract and the process to you, review and explain mortgage documents and supervise all stages of the transaction up to settlement. (For more information on what we do, see below).
Our primary para-legal/administrator has worked in conveyancing for 30+ years; the last 26 years with Bull, Son & Schmidt. Our lawyers are experienced and practical - we don't use solicitors straight out of university and we don't use your conveyancing matter as a training ground for inexperienced solicitors.
Buying property has become more complicated over the last 5-10 years. You get the benefit of our help and advice on recent developments such as the Home Building Act requirements, GST legislation and the warranties contained in the Conveyancing Regulations. These are matters which can seriously affect the purchase of any property. A common perception is that conveyancing is a straightforward process. Whilst it is true that the process involves some procedural and administrative steps, there is a lot of work which goes on behind the scenes to enable you to open the front door of your new house on the expected settlement day. To give you an example, some of the steps we carry out in a "typical" purchase transaction include the following - • Obtaining your instructions as to the timetable you wish to adopt for the transaction; • Advising on the procedure relating to such a purchase and your statutory rights and the vendor's obligations under the Conveyancing Act, Real Property Act and Conveyancing (Vendor Disclosure and Warranty) Regulation; including any "cooling off" period; • Reading and advising you on the contents of the Contract for Sale of Land including relevant annexures of searches and certificates and Special Conditions; drafting any amendments to reflect your instructions and the nature of the property and any potential problems; • Attending on you to sign Contract; exchanging Contract; • Letter after exchange advising re dates for payment of duty, providing copies of relevant parts of contract; • Corresponding with your bank or other mortgagee and/or their legal representative and satisfying their requirements prior to settlement, including copies of searches, Survey Report, enquiry certificates and insurance details; • Ordering and checking searches; • Corresponding with Solicitor for Vendor and raising Requisitions on Title; receiving replies to those Requisitions on Title and submitting those replies to you for approval; • Preparing Notice of Sale, Section 118 Notice and Transfer documents and having Contract and Transfer stamped prior to settlement at the Office of State Revenue, Stamp Duties Division; submitting stamped Transfer and Section 118 Notice to Solicitor for Vendor for execution by Vendor before settlement; • Contacting Solicitor for Vendor and your incoming mortgagee and making appointment for settlement of the purchase with those parties, including the numerous telephone calls normally required to arrange the settlement time and place; • Preparing settlement figures (the purchase price less deposit, plus or minus adjustments for rates) and submitting those figures to the Solicitor for the Vendor for approval; • Ascertaining from the Solicitor for the Vendor details of the cheques required to be handed over on settlement; subsequently calculating cheques to be provided by your bank or other financial institution mortgagee and providing details of such cheques to that mortgagee or Solicitor for mortgagee; preparing written direction to mortgagee as to payment of mortgage funds; calculating the amount required from you for settlement to proceed; • Attending on settlement with all the other parties representatives and handing over original directions, Final Search, bank cheques etc., and receiving and checking title deed, execution of Transfer, Discharge of any Mortgage, etc.; arranging for the sale agent to release keys of the property to you; • Providing you with a letter report after settlement summarising the transaction and the amount paid over on settlement and how that amount was provided.
We are not the cheapest and we are not the most expensive. We think, (and so do our clients) that we provide a quality service at a reasonable price. You may have phoned around to different firms asking the cost of legal fees for selling a property. Some firms give a telephone quote for costs and disbursements immediately. At first glance that sounds good but unfortunately conveyancing just isn't that simple. To give a realistic and accurate figure for costs and disbursements it is important to talk to you about the transaction. To do any different is to adopt a "cookie-cutter" approach. To give a specific figure for costs and disbursements without talking to you about the transaction is a fundamentally flawed approach. To give some examples - • Do you need an up-to-date survey? That could mean + or - $350.00. • Do you want a building inspection, pest inspection or some other type of inspection? That could mean + or - $450.00. • Is the property Torrens title or is it old system title or is it an unregistered plan? This could mean a significant difference to how the transaction is carried out and to what it costs. Having said that, we understand that your want some realistic indication of cost. Schedule 1 attached sets out likely costs for a range of different residential purchase transactions. The costs in the Schedule are based on the general principle that not all purchases are the same. Some involve mortgagees who have detailed requirements. Some involve expensive properties which have more issues to consider. These estimated costs don't cover unexpected problems or disputes, lengthy negotiation of contract terms, or extensive dealings with banks or other parties. Of course, if the costs are likely to be higher or lower then the estimated figure due to anything in the contract or any unforeseen problems during the course of the matter, we will attempt to let you know as soon as possible.
Lawyers are often the subject of public scrutiny when it comes to costs. Lawyers are also often the subject of jokes dealing with costs. (In fact, one of our clients' favourite sayings - "it was so cold the lawyer had his hands in his own pocket" - comes from an anti-lawyer joke book in our office reception area.) It is important, however, to keep some perspective on where legal costs fit into the total costs which are payable associated with buying a property. Your other costs include stamp duty on the contract, stamp duty on the mortgage, property inspections and searches, Land Titles Office registration fees, perhaps bank application fees, removalist and associated costs. If you are buying a property for $250,000.00 with a loan of $200,000.00, you will pay stamp duty on the purchase and loan of approximately $8,000.00. If you need a survey, pest and building report this will cost you a further $800.00. If you are buying a property for $500,000.00 with a loan of $200,000.00, the stamp duty figure will be over $18,500.00. In contrast to these large figures, the legal fee likely to be charged by Bull, Son & Schmidt is $1,675.00. This fee, apart from covering all of the legal and administrative processes involved in the transaction, also covers a lot more. We suggest good reliable people to do building inspections. We tell you what enquiries to make at the Council to find out about neighbouring developments. We help by giving tips on how to handle auctions. We check your bank documents and explain whatever you need to know about the transaction as a whole and the risks associated with it. After all, when you think about it, we are the only ones who are there to help you through the whole transaction.
One of the most important parts of a purchase is the very beginning, particularly if it's an auction. Probably the most dangerous thing you can do when buying a property is to go to an auction unprepared - not having reviewed the contract or not having carried out relevant property inspections. To help, we can review the contract for you and let you know where you stand. If you haven't got a copy of our Guide to Buying Property booklet - contact us and ask for one. We can send it out to you or you can pick it up from our office. It is free for clients. If you have a property you are interested in buying - get a copy of the contract from the real estate agent and contact us to arrange a time to review it.
Disbursements are additional to the above costs. A schedule of possible disbursement costs is attached. Determining which disbursements are required involves consideration of the contract, your wishes and any requirements your mortgagee may have. All figures quoted are exclusive of GST.
If Strata Title
You will also have to pay GST on some disbursements. |
Any questions? Contact us by email (lawyer@bullson.com.au), fax (9439 6756) or phone (9439 5299).
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