INITIAL STEPS & THINGS TO NOTE
INITIAL PROCESS
The process for an off the plan purchase differs greatly to that of an existing property.
Usually, the agent will require that you pay a refundable holding fee of either $5,000 or $10,000 in order to reserve the property. Once paid, the agent will issue a sales advice document to the developer’s solicitor which will instruct them to prepare a contract for your chosen lot and noting the terms as agreed.
Once we receive the proposed contract, we will normally be given ten business days to exchange contracts. Should you not exchange for any reason, the holding fee paid would be refunded to you.
Some agent processes do differ however and, whilst paying a holding fee is okay, you should ensure you do not sign any contract until reviewed by us.
CONTRACT REVIEW STAGE
An off the plan contract, once received, will generally take 2-3 business days to review. The review takes longer than a contract for an existing property and is more complex as it will include clauses provide for delays in construction, authorised amendments to the plans, etc.
The cost for us to review an off the plan contract is $385.00 ($350.00 plus GST) payable in advance. This fee is credited towards our total conveyancing fee should you proceed to purchase.
Upon review of the contract, we will provide you with our written comments to consider in the first instance. We will then arrange a suitable time to discuss the contract with you before proceeding to request any amendments that are required or desired. Once a reply is received, if satisfactory, the contract can then be signed for exchange after all other processes are in order.
SCOPE OF WORK
Our conveyancing fee is for the handling of a purchase of property from start to finish and includes everything in between - often involving the resolution of minor issues in the process.
There are sometimes negotiations or disputes that arise which may require attention that is outside the scope of the normal conveyancing process. Additional fees & disbursements may apply in those circumstances.
Our fees include:
- perusal of and advice on your contract and negotiation of amendments;
- attending to exchange of contracts;
- attending to payment of stamp duty;
- obtaining statutory enquiries;
- preparation of conveyancing documentation;
- liaising with your incoming mortgagee;
- arranging settlement;
- preparation of a detailed settlement statement;
- signing of conveyancing documentation in an electronic settlement;
- dealing with minor issues;
- attending to payment of outstanding rates, taxes & duties; and
- verifying title transfer after settlement.
Our scope of work does not extend beyond the above. We will not start any legal work which falls outside of the above scope, without first discussing it with you.
You should consult with your accountant for advice on tax matters such as GST & Capital Gains Tax.
STAMP DUTY
Stamp duty calculators are located on the Revenue NSW website. Grants, discounts and exemptions are available for some buyers. We can assist you with your application for any of these schemes.
REGISTRATION FEES
NSW Land Registry Services fees are payable on every purchase. If you are borrowing funds, these fees will be charged by your lender and will be accounted for by them as part of the settlement process. If no lender is involved, these fees will be payable by you on settlement.
SETTLEMENT FEES
Additionally, a PEXA Exchange fee is payable by you for an electronic settlement. If your purchase is not able to be settled electronically, a settlement agent will be appointed to attend settlement and the fee would be payable by you.
