DANGER! BUYER BEWARE!

HOW YOU CAN PROTECT YOURSELF FROM PROPERTY HEARTACHE

What at first may seem like a clear-cut bargain might end up costing you much more than you expected.

The Title
A review of the certificate of title of the property you are about to buy is essential prior to settlement. A solicitor can ensure that the property is delivered free of encumbrances to the purchaser at settlement as all encumbrances are shown on the certificate of title.

Further, a solicitor can check the title for easements or restrictive covenants. An example of an easement is a right of way over a neighbour’s land allowing use of a common bore. Be aware when buying that just because there appears to be regular access does not mean it is a legal right of access. Have a solicitor check to make sure that you will get the rights you think you are getting.

Restrictive covenants over land restrict the way land can be used by owners. A restrictive covenant can restrict the type of building (ie domestic only), the type of building material that can be used, roof colours etc. Restrictive covenants are always shown on the title and can easily be checked before signing the contract. If you do not like the terms of the covenant you do not have to purchase the property.

The Contract
Before you sign the contract, it is important that you read it or have your solicitor check it to ensure that it is being used to your advantage and that it reflects your requirements, for example; making the contract conditional on finance, a building inspection or a pest inspection. If the condition is not met the contract can be terminated. Further, make sure a date is inserted into the contract by which your offer will lapse.

Buying off the plan
If you “buy off the plan” make sure the contract sets a firm date by which the property must be finished or you can terminate the contract. Generally, you should always seek legal advice before signing a contract with a developer.

Make sure that settlement cannot take place before the unit and the complex are both complete. This includes completion of facilities such as swimming pools and services such as security. Buyers should be aware that some contracts stipulate that settlement can take place once titles are issued, which can be before the unit or the complex is finished. If you sign a contract that stipulates that settlement can take place before the property is finished you may be required to pay before you have moved in.

Real Estate Agents
Understand that the real estate agent is acting for the Vendor, not the Purchaser. The real estate agent is paid a commission for selling the property and does not owe the buyer any duty.

GETTING THE ADVICE OF A LAWYER BEFORE BUYING IS THE BEST INSURANCE.