1. What is the purpose of your purchase?
2. Who is purchasing the property?
If you are purchasing for the purpose of investment, have you considered how different business structures may minimise tax and help protect your assets?
3. What type of property are you purchasing?
4. Does your purchase require finance? If so, have you considered making your purchase subject to finance? Bear in mind, if a contract is not subject to finance it is unconditional on you being able to obtain finance. When you purchase at auction, the contract will be unconditional.
5. Will you be relying on the first home owner’s grant or duty exemption/reduction? If so, is the purchase for less than $750,000.00? Do you intend to live in it as your principal place of residence? Is the property located in Regional Victoria?
Will you be relying on any other reduction in duty payable? For example: Pension Concession or a transfer between spouses.
6. Will anyone else be contributing to the funding of your purchase? The impact of this might be that this person could have a caveatable interest in your property.
7. Have you considered the tax consequences of your purchase? Such as GST,GAIC, Land Tax, CGT and Stamp Duty.
Common examples of situations which arise are people being unaware if they should be registered for GST.
We suggest speaking to an accountant about this issue, if you require a recommendation, please let us know.
8. Have you considered how this purchase will impact your will?
9. Does the contract provide you with the ability to on-sell your interest? This can be important for some clients who are entering into off the plan contracts, which can take years to eventuate.
10. Do you have any reason to believe that any renovations have been done to the property in the last 7 years? A building permit may have been required and if it was not provided, you may have to pay to rectify with council.
For example: renovated bathroom, decking or a gazebo.
11. Is this a recently built house? If so was the work carried out by the owner as the builder? There are more stringent requirements for owner builders.
12. Is there any reason to believe that a pest inspection should be required?
13. Does the contract allow you to nominate a subsequent purchaser?
14. Do you believe the section 32 Vendor’s Statement is correct?
15. Is there currently a lease in place? Please note if you are buying subject to a lease this lease may continue after settlement.
16. How much of a deposit do you intend to pay?
Is the deposit going to be by way of bank guarantee?
If so will you require the bank guarantee to be called upon at settlement?
17. Have you done a thorough inspection of the property? Have you taken photos?
There is an obligation of the Vendor to provide the property in the same condition as the day of sale, save fair wear and tear.
18. After you sign the contract, have you considered lodging a caveat to protect your interest in the property?
19. Is there a restrictive covenant on the property? A restrictive covenant may prevent you from using the property as intended.
20. Are you related to the Vendor?
21. Do you intend to arrange insurance for the land?
Once you sign a contract for sale, you have an insurable interest in the property you are purchasing. Whilst in normal circumstances the vendor carries the risk of loss or damage to the property and chattels until settlement, it is advisable to take out your own insurance on the property at this stage.
Most insurers will provide a cover note at no charge until settlement.
If you would like assistance in arranging an insurance broker we can provide recommendations
22. Have you taken steps to ensure the title boundaries are correct?
We recommend that you arrange for a survey report if you have any reason to believe that the boundaries of the property are incorrect.
If you require assistance in arranging for a surveyor to attend the property, please let us know.
23. Is there a pool/spa at the property?
If yes, are baiers in place?