Conveyancing refers to the process of transferring property ownership of a newly built home from one entity to another. The individual that does this process is called a property conveyancer. Bear in mind that the process for a newly-built property differs from that of buying one that already exists. For one thing, you need a lawyer who specialises in this kind of conveyancing. Here are some important things to take into account when it comes to conveyancing for a newly built home:
Meaning of conveyancing:
Conveyancing refers to the process of transferring property ownership of a newly built home from one entity to another.
- Secure the contract of sale. This is probably the most essential document that you need to get, since you are eyeing for a house that is not yet constructed. Discuss with your lawyer or property conveyancer other factors associated with the property. Some of these are the proposed floor plans, defects, date of completion, financing, as well as the cooling off period.
- Check what’s included in the contract. Check the list of inclusions indicated in the contract. For instance, there can be a section which states that in case the original inclusions are not available, the builder is entitled to use those with similar features as a replacement. The contract should likewise come with warranties to provide protection in case the builder makes some changes.
Speaking of changes, the contract should also indicate that the builder can make minor changes to comply with the requirements of council planning. If there are changes that can greatly affect the build of the house, there should have a section which states that the buyer can cancel the contract.
- Consider the stamp duty costs. Ask your property conveyancer about stamp duty as certain locations have grants or concessions such as the First Home Buyers Grant.
- Know your legal rights. There are several things to take into account when buying a house that’s yet to be built. Make sure you understand what your legal rights are in case there’s a delay in the construction, or if you need to cancel the contract. These also include the fees associated with the cancellation.
- What if you’re buying the property with someone else? If this is the case, it should be Joint Proprietors or Tenants-in-Common. Make sure to inform your property conveyancer, because if you don’t have a section in the contract which states that you’re purchasing the property with another individual, you may be charged Government Stamp Duty twice.
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