Purchaser Information

Buying a property involves several stages. Understanding each one before you start makes the process far less stressful. At a high level the process works as follows:

• Establish your budget and get finance pre-approval
• Research the market and identify properties of interest
• Attend inspections and conduct due diligence
• Review the Section 32 and contract of sale with your conveyancer
• Make an offer or register for auction
• Exchange contracts and pay the deposit
• Prepare for settlement
• Settlement and key handover

Your Samma agent is available to answer questions and guide you through each stage. Do not hesitate to ask.

Offers can be submitted verbally or in writing to your agent. A written offer is always preferable as it sets out the price and any conditions clearly. Your agent will present your offer to the vendor and keep you updated on progress. You may negotiate back and forth before agreeing on a price. Once both parties are happy, contracts are exchanged and the sale proceeds.

In Victoria, purchasers who buy a property by private sale are entitled to a three business day cooling off period after signing the contract of sale. During this time you can withdraw from the contract, though a small penalty applies. Properties sold at auction or on the day of auction do not have a cooling off period. Your conveyancer will explain your rights and obligations before you sign anything.

A Section 32, also known as a Vendor's Statement, is a legal document the vendor is required to provide before you sign a contract of sale. It contains key information about the property including title details, outgoings, zoning, owners corporation information and any known encumbrances. You must read the Section 32 carefully and have your conveyancer review it before proceeding. If anything in the Section 32 concerns you, raise it with your conveyancer before signing.

We strongly recommend it, particularly for older properties. A building and pest inspection is carried out by a licensed inspector and identifies any structural issues, defects or pest activity that may not be visible during a standard inspection. The cost is relatively modest compared to the risk of buying a property with undisclosed problems. Your agent can assist with arranging an inspection prior to you making an offer or bidding at auction.

Before inspecting properties seriously you should obtain pre-approval from your lender so you know your borrowing capacity and can move quickly when you find the right property. When contracts are exchanged a deposit, typically 10 percent of the purchase price, is payable. This is held in trust until settlement. Your lender will arrange the balance of funds for settlement day. Confirm all finance requirements with your broker or bank well in advance of your expected settlement date.

A conveyancer or solicitor handles the legal aspects of your purchase. This includes reviewing the Section 32 and contract of sale, conducting title and property searches, liaising with your lender, preparing for settlement and managing the transfer of funds and title on settlement day. You should engage a conveyancer as early as possible in your search so they are ready to act quickly when you find a property.

Settlement is the day legal ownership transfers to you. Your conveyancer and lender handle the financial and legal aspects. You are entitled to a final inspection of the property before settlement to confirm it is in the same condition as when you exchanged contracts. Once settlement is complete, your agent will contact you to arrange key handover. Congratulations, the property is yours.

Stamp duty, also known as land transfer duty in Victoria, is a government tax payable by the purchaser on the purchase of a property. The amount varies depending on the purchase price and your circumstances. First home buyers may be eligible for concessions or exemptions. Your conveyancer or the State Revenue Office website at sro.vic.gov.au can provide an accurate estimate based on your situation.

Beyond the purchase price and stamp duty, budget for conveyancing fees, building and pest inspection costs, lender fees, moving costs and any immediate maintenance or improvement work. If you are buying an investment property, factor in ongoing management fees, rates, insurance and maintenance. Our team can provide guidance on what to expect for any property you are considering.