Spring is the peak season for the Melbourne property market. With more listings and higher competition, it’s easy to get caught up in the excitement of an auction or a private sale. However, the period between “Sold” and “Moving In” is a legal minefield.
If you are Buying a home in Melbourne this spring, a single paperwork error or a missed deadline can lead to costly delays or even the loss of your deposit.
Here are the 7 most common conveyancing mistakes and how you can avoid them to ensure a smooth transition to your new home.
| Mistake | Potential Impact | How to Avoid It |
|---|---|---|
| Skipping Contract Review | Unforeseen legal obligations | Get a professional review before signing. |
| Missing Deadlines | Financial penalties or contract termination | Use a professional conveyancer to track dates. |
| Incorrect Financial Info | Settlement failure | Double-check loan approvals and bank details. |
| Ignoring Special Conditions | Hidden costs or property issues | Ensure all verbal agreements are in writing. |
1. Not Getting a Pre-Signing Contract Review
The most common error that many Melbourne buyers make is entering into a Contract of Sale without having it looked at by a legal professional. You may get rushed into signing right away in a hot spring market. But all the special conditions, restrictive covenants and zoning regulations can turn a dream home into a headache.
A great tip: Ensure that the Vendor’s Statement (Section 32) is always checked by City Link Conveyancing before you commit.
2. Underestimating the Importance of “Time is of the Essence”
In Victorian property law, deadlines are strict. From cooling-off periods, building and pest inspection dates to the final settlement day, missing a deadline by just a few minutes can have legal implications.
3. Poor Communication with Your Lender
Victorian property law is a no-nonsense business! The cooling off period, building and pest inspection dates and the final settlement day are just a few dates that are important, and being even a few minutes late can result in legal repercussions.
4. Failing to Account for All Costs
In addition to the price of the car, you need to plan for the following:
- The tax levied on the transfer of land.Tax on land transfer (also called Land Transfer Duty).
- Variations in rates and taxes
- Legal and Conveyancing costs
- Inspectors for buildings and pests.
5. Overlooking Special Conditions
A real estate agent’s word is not a guarantee. If the seller has agreed to repair a tap or clear the debris prior to settlement, then this must be stipulated in the special condition.
6. Incorrectly Listing the Purchaser’s Name
This may seem obvious and is a common source of delays. The name appearing on the contract must be 100% correct if you are purchasing the property in a company, trust or with a specific partner. Subsequent changes made are often costly and time-consuming and necessitate a “Rescission and Re-issue” of the contract.
7. Skipping the Final Inspection
A final inspection is allowed for in the week before settlement. This is the opportunity to make sure that the property is in the same condition as it was when you signed the contract. Your conveyancer will be able to discuss the issue with the new owners if there is any further damage or if the appliances are not operational before money changes hands.
Why Choose a Melbourne Specialist?
Melbourne’s property laws and market conditions are unique. When you’re Buying, Selling, or dealing with an Off the plan purchase a local expert is essential.
We are aware of the Melbourne spring rush at City Link Conveyancing. Your documents are executed correctly, deadlines are met, and your interests are safeguarded by our staff.
Looking to get settled in your new home?
Don’t let a legal oversight spoil your move! Call City Link Conveyancing today to get a hassle-free settlement.
FAQ
Q: How long does a standard settlement take in Melbourne?
A: Most settlements in Victoria take between 30, 60, or 90 days, depending on what was negotiated in the contract.
Q: Can I do my own conveyancing?
A: While legally possible, it is highly discouraged. The complexity of Victorian property law and the risk of financial loss make hiring a professional a much safer investment.
Q: What happens if I miss the settlement date?
A: You may be charged penalty interest for every day settlement is delayed, and in extreme cases, the vendor may have the right to cancel the contract and keep your deposit.
