Buying in New South Wales – assemble your team with caution to ensure you get what you’re paying for.
Most people who arrive on our blog are somewhere along the process of buying or selling a property. NSW Purchasers should be cautioned of the need to assemble a team of support resources in the days and weeks leading up to purchasing a property. Without a doubt, the process is daunting and likely unfamiliar to most of our clients, especially for first home buyers. As an experienced client advocate, I cannot stress the importance however of being properly advised.
In NSW, the responsibility for conducting proper due diligence on a property rests entirely with the purchasers. Sure it is the responsibility of the seller to provide you with the section 149 disclosure statement, but that is where their responsibility ends. In fact, a properly constructed section 149 can put a potential purchaser on Notice of any issues, which if not identified in the purchaser’s due diligence phase – can actually protect the seller following signing. It is for this reason that the team at Think take seriously, the responsibility of conducting due diligence on behalf our our clients, reviewing and advising a client on a potential purchase. There is ABSOLUTELY a difference between someone glancing at a contract and section 149 and someone reviewing it. Knowing the difference will give you a great sense of peace of mind, should you choose to proceed.
As your adviser, we take this review process so seriously that our reviews are subject to a Four Eyes Review policy – meaning that not just one practitioner reviews your contract and advice, but two people review all contract advice in NSW before it is issued to our client. This abundance of caution, exercised on behalf of our clients is in contemplation of the serious risks we occasionally find in contracts of sale and Section 149. The moral of this story is, if you are concerned, inexperienced or unfamiliar with the purchasing process – be aware that as a purchaser in NSW YOUR advocate, is YOUR conveyancer. If they are not willing to give you a written review (something that is insured and can be relied on!) then it would be in your best interest to look further. This is the vital work of a purchaser advocate and to be protected, it is an essential step in the process.
In an effort further, we have assembled a short FAQ of inquiries made by purchaser clients in NSW. I hope that it helps get you up to date on the lingo and the process. Should you need any further advice or assistance, please feel free to call our fantastic Customer Concierge team on 1300 932 738.
Buying in NSW – FAQs
1. What is the cooling off period in NSW?
The standard cooling off period expires at 5pm on the 5th day after the day of the Contract. If you decide to exercise your right to cool off, meaning you wish to end the contract, you may do so within the 5 days however you will forfeit 0.25% of the purchase price to the vendor.
2. Can I make the contract subject to finance and building and pest inspection?
Typically, Contracts in NSW cannot be made subject to finance. It is your responsibility to either obtain finance approval prior to signing the Contract or to obtain unconditional finance approval during the 5 day cooling off period. You will need to organise the building and pest inspection during the 5 day cooling off period.
3. Can I request to extend the cooling off period?
Yes. This is with the consent of the Vendor. We can make that request in writing on your behalf to the Vendor’s Solicitor if you require an extension to the cooling off period.
4. When do I organise the pre-settlement inspection?
You are entitled to one pre-settlement inspection 3 days before the completion date which can be organised by contacting the real estate agent.
5. When do I pay stamp duty?
Stamp duty is payable on your purchase on or before settlement. We can provide you with an estimate of the stamp duty after the purchase price has been agreed. Stamp duty is calculated on the purchase price and also includes an additional $20.00 for stamping the Contract and Transfer. It is important that you make sure that you have sufficient funds from either your loan or make funds available to pay the stamp duty.
ThinkConveyancing.com.au is a law firm that takes seriously its responsibility to protect its clients interests. We are passionate property people able to help buyers and sellers in NSW achieve their goals and to protect them throughout the process. If you want build your team with a conveyancer / lawyer who is committed to delivering a quality service, applying a first rate attention to detail and who is contactable across the term of your matter – then your needs meet with our expectations of ourselves. We would welcome the opportunity to work with you. Take the first step and call our Customer Concierge team on 1300 932 738.