Check the contract

Buying a house is usually the only time in your life when you spend such a large amount of money.  Despite that, many people still don’t do the usual checks when buying a house.

We are still regularly surprised at people who do not have the contract and section 32 statement reviewed by a lawyer (or conveyancer) before they buy a house.

The rules of auctions are also regularly questioned, the principle rule being that any auction is condition free.  You must have finance in place before you bid at auction, otherwise it is too late.

At a minimum, you should do the following checks when you are buying a house:

1. Check the contract for any special conditions and review them closely;
2. Make sure the section 32 statement and the certificates included in it, are up to date and all clear of conditions.  Make sure that you are aware of the use planning zone for the block together with potential bushfire protection, flood risk and heritage overlay
3. Have a building inspection done if there are any structural concerns, and particularly if the house is older.
4. Check the boundary of the property against the title documentation, to ensure they match (yes measure it!).
5. Make sure you have the deposit (usually) 10% available free and clear to pay on the auction day, or upon signing of the contract.
6. Be aware of the amount of stamp duty by doing an assessment online here:

or if you think you are eligible for a stamp duty exemption, speak to your conveyancer or lawyer.

If you are building, the following further checks should be done:

• Check the builder’s registration status and any conditions or limitation on it by checking the Victorian Building Authority’s website under “Find a practitioner”.
• If it is a building company, check both the CAN and ABN match the details given in the contract, by doing a free search on the ASIC website.
• Make sure all the drawings and specifications are included in the contract, and make sure it is the correct version of the documents that is included.
• Make sure the contract is checked carefully, particularly the parts about variations, termination, delays and liquidated damages.

If in doubt, see a lawyer!   www.holdstocklaw.com.au