When it comes to purchasing property, there are a few things you need to consider before you put pen to paper. One of these is a pre-purchase contract review.
One of the critical roles a conveyancer can play for their clients is to provide pre-purchase advice.
This includes reviewing the contract and ensuring that everything is in order before the purchase goes ahead.
Conveyancers can also help with the contract negotiation and will be able to advise you on any potential risks involved in the purchase.
Of course, this becomes much easier if the contract has been reviewed before signing.
With that in mind, this article will explore five reasons why a pre-purchase contract review is an absolute must when buying property.
1. Peace of mind – knowing precisely what you’re getting into before making a purchase
A pre-purchase property inspection is crucial whenever you are considering buying a property.
First and foremost, it’s important because you need to know what you’re buying and the purchase terms before you sign.
It would help if you were comfortable with all the conditions of the sale, and a contract review will help ensure that everything is in order.
This can help give you peace of mind.
2. Avoid nasty surprises – unearthing potential problems before they become expensive and time-consuming to fix
Another key reason to get a contract review is that it can avoid any nasty surprises down the line.
Your conveyancer will be able to spot any potential problems with the property, such as title issues, zoning problems, or owner-builder works that have not been made clear on the title you’re purchasing.
You’ll also find out about any other fees that might come with the property, such as body corporate/owners corporation fees.
If these problems are found before you purchase the property, they can be negotiated into the contract and resolved before you become the new owner.
If they are not resolved before purchase, they can become expensive and time-consuming to fix.
3. Fit for purpose – ensure the property you are buying is fit for your intentions
Often, people buy a property with a firm idea of what they want to do with the property once it’s purchased.
Maybe they want to convert the home into a business of some sort.
Maybe they want to try and knock down the property and build two units in its place.
No matter your intentions, you’ll want to make sure that those intentions are realistic on the property you are planning to purchase.
A contract review can help to ensure that the property you’re buying is suitable for your needs and that there are no restrictive clauses which may prohibit you from carrying out your plans.
4. Expert analysis of any special conditions within the contract
Whilst most Contracts of Sale are relatively formulaic, almost every Contract of Sale will include Special Conditions.
These are clauses that can be negotiated and which vary from property to property.
They might relate to the sale of the property, such as the settlement date or terms, or they might relate to the condition of the property.
Your Conveyancer will be able to analyse these conditions and advise you on their implications as well as negotiate with the vendor’s Conveyancer to have them amended if necessary.
5. Protection against fraud – ensuring you are buying property from the actual owner of the property
One of the most important parts of a pre-purchase contract review is the process of conducting a range of searches relating to the property.
One of these is a title search, which will show details about the property’s ownership amongst other things.
It is not completely unheard of for people to try and sell a property that is not theirs.
This can happen for a number of reasons, but often it is due to financial difficulties.
Conducting a title search will help to ensure that you are buying the property from the actual owner and not someone who is trying to fraudulently sell it to you.
These searches also eliminate a range of other risks, including that the property you are intending to buy is what it is represented to be.
For example, a fence may have been rebuilt 1.5 metres onto the neighbouring property, meaning the property you are thinking of buying may have a boundary that is actually 1.5 meters shorter than you had originally expected.
Contact Tick Box Conveyancing for a Pre-Purchase Contract review today
Are you eyeing off a property?
Save yourself time, hassle and money with a pre-purchase contract review.
If you’re thinking of buying a property, make sure you contact Tick Box Conveyancing to get a pre-purchase contract review.