Common Factors in Purchasing a Home

Purchasing a home is a major investment and the amount of paperwork and legal matters involved, can be quite confusing. However, there are some things that can help make the process easier, and one of the main things is to hire a good conveyancing firm. A conveyancer deals with the legal transfer of ownership of land or property and can help you with the entire purchasing process from start to finish. Some common factors in purchasing a home that a conveyancing company can assist with include:

Contract Review

One of the first things you should do after you have found your ideal home is obtain a copy of the contract from the vendor or agent. You should then engage a conveyancer to perform a contract review, once the review is completed, your conveyancer can advise you about the conditions of the agreement, notify you of any dangerous areas, and negotiate for any changes you feel are appropriate.

Building and Pest Inspection

While many Australian’s question the importance of this step, a building and pest inspection should be performed before you purchase a home for many reasons, and some financial institutions will not approve a home loan if an inspection has not been completed. Your conveyancer can arrange for a reputable company to visit the house and perform an inspection.

Not only is the building and pest inspection important for financing, it is also important that you are aware of the condition of the home you are buying before you sign the contracts. This helps to protect you from purchasing a home that has structural defects that may become dangerous. The inspector will also check for pests such as termites, which can eat through the structure of a building in a way that could cause collapse.

This inspection allows you to decide against purchasing the property if too many structural problems are found. It can also help you come up with a viable termite prevention and management plan to ensure your new home is kept in great shape for as long as possible.

Arranging for the Loan to be Unconditionally Approved

At some point during the home buying process, you will need to talk to a bank or financial institution about a home loan. In most cases, the first step is to obtain pre-approval, and then conditional approval that means the loan application is approved as long as certain terms and conditions are met prior to the next step.

The final stage is unconditional approval, which means all terms and conditions have been met, the lender has everything they need and have confirmed that they are willing to loan you the funds. The lender will give issue a letter of approval, which you should receive before the end of the cooling off period. If, for some reason you have not obtained unconditional approval before the end of the cooling off period, you should ask for an extension.

Title Insurance – What is it and Do I Need it?

Title insurance is a special type of insurance policy that protects you legally and financially against any legal problems that may arise with the property that you did not know at the time of purchase. Title insurance companies such as Stewart Title issue this type of insurance.

Some of the problems that title insurance protects you from include, missing or forged documents, liens for unpaid inheritance, estate, gift or income taxes, and errors in recording legal documents. Without title insurance, any one of these problems could cause you to lose the title to the property and possibly lose a lot of money.

Title insurance will pay for any legal fees and for defending you against any lawsuits that may arise regarding the title, and will either rectify any title issues or pay any losses incurred by the insured. Once title insurance is purchased, it remains in effect as long as the insured or their heirs have an interest in the property.