Buying real estate is usually the biggest investment you will ever make. When you buy a house, you are are buying a property and usually a home for your family. There are a whole series of legal implications for buying and selling property which you should be aware before embarking on a transaction of this scale as it can be very risky and if you are not fully informed about a transaction before you begin, you risk a big loss on any investment that you may make.
In New South Wales, there is a system of conveyancing which is now very well established and understood by almost every provider of the conveyancing services. There is an entire legal process which is used by both buyers and sellers that is designed to protect the interests of both parties and provide remedies in the case where either party fails to meet their obligations under the various contracts which can be written. In New South Wales, there is a counter-party system of contracts which is used to buy and sell property. You go to the agent of the vendor and there is usually a process of offer and acceptance which occurs between the parties before a price is agreed upon.
Then there is an exchange of contracts. The buyer signs one copy of the contract and the seller signs another. The parties give each other the copy of the contract that they have signed. The contract is then binding and in effect. At this point, the deposit is also usually paid into the trust account of the real estate agent or the vendor's solicitor. The parties then take the time to do requisitions on title and searches, draft the transfer and do adjustments as a result of the searches before settlement occurs. They must also ensure that the correct finance is in place for the transaction to take place. Assuming that all of these steps are completed,settlement will occur on the date appointed in the contract.
Some of the risks that people are unaware of when entering into these contracts are that the sale will not complete which will mean that they could lose their deposit. It will also mean that they may be liable to pay damages for not completing the contract. If you are a seller, some of the risks can include that you may end up signing a contract with a real estate agent that you will need to pay their commission even if the sale doesn't go through or the marketing costs of the agent. Many people are unaware of the serious risks which can be related to these types of property transactions.
Then there is an exchange of contracts. The buyer signs one copy of the contract and the seller signs another. The parties give each other the copy of the contract that they have signed. The contract is then binding and in effect. At this point, the deposit is also usually paid into the trust account of the real estate agent or the vendor's solicitor. The parties then take the time to do requisitions on title and searches, draft the transfer and do adjustments as a result of the searches before settlement occurs. They must also ensure that the correct finance is in place for the transaction to take place. Assuming that all of these steps are completed,settlement will occur on the date appointed in the contract.
Some of the risks that people are unaware of when entering into these contracts are that the sale will not complete which will mean that they could lose their deposit. It will also mean that they may be liable to pay damages for not completing the contract. If you are a seller, some of the risks can include that you may end up signing a contract with a real estate agent that you will need to pay their commission even if the sale doesn't go through or the marketing costs of the agent. Many people are unaware of the serious risks which can be related to these types of property transactions.
Posted in: Real Estate
