Buying property can be a daunting experience, especially for first home buyers. Checklists include buyer beware precautions such as obtaining Pest and Building or Strata Reports where relevant, and ensuring any finance required is fully approved.
Where loans are made from the bank of Mum and Dad, it is highly recommended that a formal loan agreement be entered into, to avoid future disputes about the loan having to be repaid and on what terms.
Obtaining legal advice on contracts is also a priority, especially if bidding at auction. The advice should include negotiations of contractual clauses that may create unacceptable risk to the purchaser. Common aspects of concern in property contracts include release of deposit clauses and ambiguity as to the proposed completion date for the sale. Particular care should be taken when bidding at auction, as there is no cooling off period at auction sales.
From 1 July 2023 there will be expanded stamp duty concessions for eligible first home buyers in NSW. The exemption threshold will increase from $650,000 to $800,000 and the concessional rate will increase from $800,000 to $1million. Residential requirements apply.
Castle Lawyers have been acting for clients in conveyancing matters since 1992. We are holding a free online Zoom presentation on contracts for sale of property at 11am on Wednesday 19 July. The presentation will provide a general understanding of contracts for sale and how to prepare to buy property. The Zoom link can be obtained by emailing admin@castlelawyers.com.au
Cecilia Castle is an Accredited Specialist in Family Law, and principal of Castle Lawyers at Asquith. CastleLawyers.com.au
