Legal
Property on Sale’s legal professionals are here to assist you with any legal requirements associated with purchase of your investment property.
It is particularly important for both domestic and foreign investors to familarise themselves with legalities in relation to purchasing property in Australia. There are many legal documents and processes involved therefore it is necessary to seek legal advice before proceeding.
The Legal Process in Australia
Conveyancing is the actual process of transferring ownership of a property from the seller to the buyer. It involves the drawing up and management of legal documents, ensuring the property is free of restrictions, problems and limitations, and the transfer of large sums of money during the purchase process. Lawyers and Solicitors provide professional advice in relation to this element of property investment.
Duties of your solicitor may include:
- advising the buyer before the contract is signed about special conditions that are included and the effect of signing the contract. If the buyer receives this advice, the cooling-off right is lost;
- checking the contract, and the vendor’s statement;
- conducting searches and making applications for certificates, and reporting to the buyer. The buyer is expected to examine the property;
- exchanging contracts with the seller’s solicitor (if a contract of sale is used);
- preparing the transfer of land;
- advising the buyer about finance and providing all the information that the lender requires about the title to the land;
- checking the documents and advising the buyer;
- preparing a statement of adjustments and settlement statement showing how the cheques are drawn and paid;
- arranging and attending settlement on the buyer’s behalf;
- lodging a notice of acquisition of land at the State Revenue Office;
- notifying the council and the water authority of the purchase; and
- paying stamp duties and lodging documents for registration unless the lender does so.
Duties of a seller’s solicitor include:
- preparing a vendor’s statement and special clauses to go into the contract;
- preparing a contract of sale;
- exchanging contracts with the buyer’s solicitor;
- checking the transfer, statement of adjustments and settlement statement;
- preparing a statutory declaration about the value of the sale;
- arranging for discharge of the seller’s mortgages and for a clear title;
- attending settlement on the seller’s behalf; and
- notifying the council and the water authority of the sale
Fees and Charges
As a buyer you must pay:
- Land Registry search fees;
- registration fees to the Land Registry on the transfer and mortgages;
- stamp duty – based on the purchase price recorded in the transfer; and
- solicitor’s costs.
The seller must pay:
- estate agent’s fee (which is usually deducted from the deposit);
- expenses of the sale, including advertising expenses;
- solicitors fees associated with preparation of contract of sale; and
- government fees in respect to the sale of the property and preparation of any associated mortgages.
Source- www.lawhandbook.org.au
Foreign Investment Review Board (FIRB)
The Foreign Investment Review Board (The FIRB) assesses applications from foreign investors looking to purchase property in Australia, and makes recommendations to the Treasurer on those subject to the Foreign Acquisitions and Takeovers Act 1975 and Australia’s foreign investment policy.
When purchasing property in Australia you will be required to obtain prior approval from the FIRB. Property On Sale will assist you in this process if required.
You should also consider the following limitations:
- If you are an overseas investor interested in purchasing either a house and land package or a new property (never previously occupied); then FIRB approval must be sought;
- You can buy a new property in your name and rent it out to your child that is on a temporary visa.
Property On Sale will work with you to ensure that the FIRB application form is submitted prior to the signing of a contract of sale to purchase the land.
Click here to complete an expression of interest form or submit an enquiry.
Full details of the FIRB guidelines can be accessed here.
