Frequently Asked Questions

A Section 32 Statement is a document containing certain information about the property which is provided by the vendor to an intending purchaser. It must be provided to the purchaser before a contact is signed. JMP Conveyancing also recommend that it is also reviewed by them before a contact is signed. Basic information contained in the Section 32 Statement are:
  • Statutory warnings to he purchaser;
  • Vendors details;
  • Title details;
  • Information regarding building permits issued in the last 7 years;
  • Particulars of owner-builder warranty insurance;
  • Particulars of any mortgages or “charges” over the land;
  • Information regarding covenants, easements and any other restrictions on title (whether or not they appear on title);
  • Planning information, particularly where zoning restricts land use;
  • Information regarding outgoings payable by the owner of the property;
  • Disclosure of any notices or orders issued by the authorities, regarding fencing, road widening, sewerage etc;
  • If there is access to the property by road;
  • Information on services connected to the property
The settlement date is the day which is agreed upon between the parties at the day of sale. If the settlement date falls on a weekend or public holiday, settlement will be due on the first business day after that date. On settlement, the vendor’s and purchaser’s representatives, together with any incoming and outgoing mortgagees, arrange to meet at a convenient time and location. The property documents are exchanged for the balance of purchase monies, by way of bank cheques. Once all parties are satisfied with the cheques and the documentation and good title has been established, settlement is deemed to have been effected. The parties are notified that settlement has taken place and the keys can then be released tot he purchaser. The purchaser may now takes possession of the property.
The Transfer of Land is a formal legal document prepare by the purchaser’s conveyancer, which is registered at the Office of Titles after settlement. It establishes the Purchaser as the new owner of the property. The Transfer of Land is first signed by the Purchaser and then the Vendor, who provides it at settlement. The amount of stamp duty payable is calculated by reference to the Transfer of Land.
Unless you are certain who the Purchaser of the property is to be then you should ensure that the Purchaser is you “and or Nominee”. This will enable you to later on put the property into the name of the correct Purchaser which may be you and someone else or a company.
It is very important to have your finance in order prior to signing any Contract. Sometimes, you may have obtained ‘conditional’ or ‘pre-approval’ but the bank may requires a signed Contract of Land and or completed valuations, to provide the ‘unconditional’ loan approval. It is therefore very important that a Contract is conditional upon your finance being approved. A finance condition allows you to cancel the Contract if your finance is not approved within a certain time. If you are purchasing a property at auction, you will be required to enter into an unconditional Contract so you should ensure that your finance is approved prior to signing.
Statement of Adjustments are prepared by the Purchaser’s representative to calculate the monies that are owed upon the property. Adjustable items include the council rates, water rates, body corporate fees (if applicable) and the like. Adjustments are calculated so that the Vendor pays for everything due up to the date of settlement and the Purchaser for everything due from the settlement date until the end of the next rating period. In accordance with the Local Government Act adjustments are calculated on a paid basis. Cheques to cover payment of any outstanding rates are deducted from the monies due to the Vendor at settlement. These cheques are retained by the Purchaser’s legal representative and forwarded to the relevant authorities following settlement.
The following fees are payable when purchasing a property:
  • Stamp Duty
  • Transfer of Land registration fee
  • Mortgage of Land registration fee
  • Lenders Mortgage Insurance (if applicable)