Do you really need to have your property exchange contract reviewed? In short, yes. For a more in-depth answer, read this article.
Why do you need a conveyancer when you are buying a property?
Do I need to have a contract reviewed before I sign it?
In short, absolutely. It’s not recommended for anyone to buy a property without having a contract reviewed.. This is because there are so many things that can go wrong.
And if things do go wrong, you can find yourself seriously out of pocket in the long run. Not having a conveyancer to look over your contract can be a huge mistake!
Let’s run through some examples that will help you understand why having a conveyancer check your contract is so important.
#1 Land tax
There is an innocent-looking little land tax box on page two of every property contract. If you miss this box, you can end up paying land tax for the vendor. As a buyer, you shouldn’t have to pay any land tax that the previous owner needs to pay. Overlooking this one tiny detail can cost you hundreds of dollars.
The GST box is also only too easy to overlook and you may find that the price you are expecting to pay is not final and you may need to pay additional GST on top of the purchase price.
#3 Hidden conditions
It’s not uncommon for contracts to have hidden conditions that are easily missed. It could be that the property is a deceased estate requiring lengthy legal procedures or that the vendor reserves the right to a shortened settlement period. Small conditions like these can have a significant impact on the time it takes you to organise your finances and move into the home.
These are just a few of the possible stumbling blocks that you can face without reviewing your property contract.
It gets worse!
So far these examples are relatively minor inconveniences. However, failing to have a conveyancer review your contract can also have far more disastrous consequences.
Imagine you have bought a property without a proper review of the contract. You move into the home and then realise that the contract disclosed a structure on the property that did not have council approval. Now you are possibly living in an illegal home.
But you bought the place! Once you have settled, if you find yourself the owner of a property that requires council approval, you are responsible for paying for all the council paperwork. You might even find yourself having to pay to remove the structure. Now you are living in a three-bedroom home when you paid for four bedrooms! Even worse, the cost of removing the room came from your own pocket.
This may seem like an unlikely thing to happen but I have seen it more than once.
Who should review your property contract?
Once you sign a contract, the deal is done. It is legally binding and you are held to the conditions within.
Not taking the time to study your contract can have dire consequences. Getting professional help from a conveyancer is the best way to make sure that the document doesn’t contain any nasty surprises.
It may cost you a few extra dollars to have your property contract reviewed by a professional, but it is money well spent to give you peace of mind that you’re getting exactly what you pay for.
Looking for the best conveyancer on Sydney’s lower north shore? Contact Thorpe Conveyancing today.