Frequently Asked Questions

A Contract of Sale is a legally binding agreement between a buyer and seller outlining the terms and conditions of the transaction. 

The document includes details such as the purchase price, payment terms, delivery date, and any specific conditions or warranties. 

This document is essential in protecting both parties' rights and interests during the transaction. 

Understanding the content and implications of a Contract of Sale is crucial to ensuring a smooth and fair transaction. 

The Vendor's Statement is a document that contains information about the property such as the property's title including covenants, mortgages, easements, zoning, and information on outgoings such as rates. 

Please keep in mind that the document does not contain information about the condition of the building and whether it complies with building regulations, or if the measurements of the title or other documents are accurate.  

BUYER'S TIP: Before making an offer on a property, consider engaging a conveyancer to carefully check the vendor's statement to ensure that you make an informed purchase decision. Remember, it is the buyer's responsibility to find out about anything not covered in the vendor's statement. 

A cooling-off period of three (3) clear business days applies to private sale transaction. This period allows a buyer time to consider their offer. 

The period begins from the day that the buyer signs the Contract (not from the date the seller signs). 

If the buyer wishes to exercise their right to "cool-off", written notice must be provided to the seller and their real estate agent, and the buyer will be entitled to a refund of any deposit monies paid less $100 or 0.2 per cent of the purchase price, whichever is greater. 

The deposit is usually set to 10% of the purchase price and is paid by the buyer to the seller's agent or legal practitioner. 

An initial deposit is paid when making an offer and the balance becomes due by the date set in the Contract of Sale. 

The buyer must ensure that the full deposit is paid by the set due date to avoid being in default of the Contract. If the buyer requires an extension within which to pay, they must promptly advise their legal representative to seek same. 

In certain circumstances, the seller may seek that the deposit monies be released to them before settlement by service a Section 27 Statement. 

In such cases, the Contract must be unconditional, and the buyer must have been satisfied with proof of debts information. This includes being provided information from the seller detailing any mortgage or other loans relating to the property. 

The buyer is given 28 days to consider the request. 

BUYER'S TIP: Do not make an offer whereby you agree upfront to release the deposit under section 27 without first obtaining relevant advice from your legal representative. 

The finance clause is an optional provision in the Contract of Sale that allows a buyer to secure finance for their purchase. 

This clause typically outlines the specific terms and conditions relating to obtaining finance, such as loan amount, approval date, and lending institution. 

By including a finance clause in your Contract, you can protect yourself from potential financial risks and ensure that you have the necessary funds to complete the purchase. 

If you have any questions about the finance clause or need assistance navigating the home buying process, please do not hesitate to reach out to us for professional guidance. 

It is advisable to conduct a pest inspection prior to offer or making an offer subject to same. 

For a list of designated termite areas, please visit buildingcommission.com.au, or enquire with the local council.

Settlement is the day on which the buyer is required to pay the balance of the purchase price to the seller, and the property title is transferred to the byuer. 

The settlement date is set by the seller and is usually between 30 and 90 days. A buyer however may be able to negotiate an alternative settlement period with the seller before signing the contract. 

The Land Registration fee is a government charge payable to the Land Registry for providing the service of registering your interest over a property or land in their register. 

When you purchase or acquire property, you are required to pay a land transfer duty, commonly known as stamp duty, to the State Revenue Office. Duty is payable at settlement and therefore you should enquire as to anticipated duty your transaction will attract to ensure you are financially ready to purchase. 

You are required to pay stamp duty when you buy a home, whether that be an investment property, first home, holiday home etc.  

If you are buying a property to live in, you can expect to pay the principal place of residence rate. 

Duty exemptions and concession may also apply for certain concession card holders and first home buyers. For complete details including duty calculators please visit: https://www.sro.vic.gov.au/land-transfer-duty

There are two main ways in which you can purchase property: by auction or by private sale. 

BUYER'S TIP: If buying at Auction, please remember that you are not entitled to the cooling-off period, and you must pay your deposit on the auction day. Auction contracts are unconditional and cannot be made subject to conditions that protect your interests. Please ensure you have finance in place and are able to settle the transaction by its due date. 

Even though a property may be covered by the seller's insurance up to and including the day of settlement, it is strongly recommended that buyers obtain building and contents insurance over the property from the date of signing the contract.

Generally, GST only applies when purchasing new homes and does not apply to established homes unless the seller is registered for GST.  

You may check a sellers GST status at asic.gov.au

DO NOT sign a contract without first checking whether GST applies. If unsure, seek advice from a professional. 

Where GST applies to a transaction, it must be clearly specified in the contract whether the price is inclusive or exclusive of GST, how it is calculated, and who will pay for it. 

A Conveyancer is a legal professional, other than a legal practitioner, who is licensed to undertake property conveyancing work and provide legal advice about the transfer of a title. 

Licensed conveyancers must have professional indemnity insurance. 

At illustrîa Conveyancing we specialise in a variety of conveyancing services, including residential and commercial real estate transactions, off the plan, and related or unrelated title transfers. 

For a full list of services offered please head over to Our Services page. If you cannot find the service required, give us a call and enquire further: we are happy to help and point you in the right direction.