What every first home buyer should know
Buying your first home can be a very challenging time. Your finances have to be in order which can take a while considering how strict lenders are today. There is so much paperwork involved too. The transfer of a property title requires lots of legal documentation to ensure every aspect of it is legally sound. These documents are also used as a form of legal protection for all parties involved.
Along the way, there can be many legal issues that arise from a property transaction. With the right legal advice, you can safeguard yourself from certain things going wrong during a property purchase. First home buyers can be most at risk when it comes to legal issues. They are not always aware of what to look out for.
Are you aware of the legal issues and conflicts that can jeopardise your first home purchase? Here we’ll break these all down for you. With the right property law advice, you can protect yourself during your first property purchase.
Shared property ownership
One tactic a lot of first home buyers use is going in on a property with others. By purchasing a property with other family members or friends you can drastically reduce the financial strain you put on yourself. Potentially halving a deposit amount and monthly mortgage repayments will save you thousands in the long run.
But for a shared property purchase it’s very important to think about what happens when circumstances change. If one of the purchasers wants to sell their share of the property it can get very messy. Especially if the decision is based on ill intent between you and the purchaser that’s selling their share.
We highly recommend you seek legal advice well in advance to buying a property with others. Get property law advice from a legal professional. They can advise you on the right paperwork to draw up. A good Property Lawyer can draw up a legally binding agreement before purchasing the property. This agreement can detail how a property will be divided up in the case of death or if someone decides to sell their share in the property.
Inspecting prior to purchase
Buying your first house is likely to be the biggest purchase of your life. With a purchase of this size, you want peace of mind knowing there’s nothing wrong with the property. Or at least nothing major. Things to look out for can be structural defects, damage, or even the presence of pests such as termites.
A good lawyer will offer you property law advice around inspections. What a lot of first home buyers don’t realise is that they can make a building and pest inspection a condition of the contract of sale. With an inspection listed as a condition, you have the right to back out of a property sale if anything bad is brought to light.
Keep in mind that you can only back out of a property sale before you sign a contract of sale or during a three-day cooling-off period. This cooling-off period is effective from the day you first sign the contract of sale. Another option you have is getting an inspection done on the property before you put in a bid or an offer.
A $500 building and pest inspection may seem expensive for a property you may not get. But consider the thousands of dollars you’re saving yourself if the property does end up having a major defect. It’s best to avoid property buying if you don’t have a full picture of what you’re getting.
Using a property law expert
There is no legal requirement to have a Property Lawyer or Conveyancer supervise your property purchase. You are allowed to take care of property transfer paperwork by yourself. This process includes reviewing and signing all of the legal documents. But property law advice can be priceless for a process like this.
Unless you have a background in property law, there is no surefire way of protecting yourself from any pitfalls. How will you know what to look for? The worst case-scenario is losing the property and forgoing your deposit. Are you willing to take that risk? Most Property Lawyers and Conveyancers have the right training and years of experience behind them. That’s how they know what to look for when they offer property conveyancing.
A Property Lawyer will review the contract of sale and make sure there are no errors in the paperwork or red flags. They can also perform a title search to confirm the property is legally owned by the seller. A Property Lawyer can also check to make sure there are no outstanding debts or liabilities attached to the property.
Get property law advice from P&B Law
Ready to buy your first property? Aside from the stress, it’s also a very exciting time. Bidding on your first house is a big commitment. Here at P&B Law, we can offer you sound property law advice every step of the way. Our experienced Property Lawyers can review all of the legal documents required for a property purchase.
Our Property team can look for any errors and red flags to ensure you’re being protected during the purchase process. Our Property Lawyers can also assist in drafting any legal documentation like a property co-ownership agreement. So for sound property law and advice, talk to our Property Lawyers. Simply call 1300 526 246 to make an appointment.