Steps to buying a property in Sydney

Purchasing a property is one of the most pivotal financial decisions an individual can make in their lifetime. Therefore, understanding the process is crucial to ensuring a stress-free purchase. In this guide, we'll walk you through the essential steps to buying a property in Sydney – from initial considerations to collecting the keys at settlement.

1. Finance

Before diving into the property market, it is important to first decide on what your budget is. If you are intending on taking out a mortgage to assist you with your purchase, then it is encouraged that you speak with your preferred mortgage broker before searching for the right property. Doing so will allow you to determine exactly how much you can spend.

2. Property search

Start your property search! Identify the features you are looking for in a property such as location, size, number of bedrooms, development potential and the price you are willing to pay. Whilst the most popular method of searching for properties is through online real estate listing websites, you may also approach a real estate agent directly to enquire about any off-market properties. Often times, real estate agents have a number of properties which they have been instructed to sell off market.

3. Enquiries to make when buying a property

Once you have identified a potential property, you should first attend an inspection of the property and check to see that the property meets your needs. Inspecting the property firsthand will also allow you to gauge how much interest the property is attracting and identify any issues with the building itself. You will also have the opportunity to speak to the real estate agent and obtain further information on the property including why the vendor is looking to sell.

At this step, you should consider obtaining a copy of the contract for sale and have a solicitor or conveyancer review the contract for you. Your solicitor or conveyancer should explain the contract to you including your obligations under the contract, any adverse special conditions, any notations on title (such as easements or caveats), identify where the services are located on the property and discuss with you any planning issues which may affect the property.

In the meantime, you should also consider conducting some additional enquiries, including the organising of a building and/or pest report, a strata report or contacting your town planner and/or Council to discuss the development potential of the property.

4. Making an offer to purchase

If you are satisfied with your enquiries, then you can proceed to make an offer on the property. This may involve some negotiations between you and the real estate agent before a price is agreed upon. Once you agree on a purchase price, you will need to sign the contract.

If the sale is by way of a private treaty, you will be entitled to a cooling off period of 5-business days. This will allow you 5 business days to make payment of the deposit or to rescind the contract if you no longer wish to proceed. The vendor will be entitled to keep 0.25% of the purchase price.

If the sale is by auction, then you will not be entitled to a cooling off period and you must proceed with the purchase if you are the successful bidder at the auction.

Once both parties have signed the contract, the contracts are said to be exchanged.

5. Settlement

Once exchanged, the purchaser and vendor will need to do all things necessary to prepare for settlement. During this time, further enquiries are made on the property and adjustments are made in respect of rates and utilities. At settlement, you will pay to the vendor the balance of the purchase price (less the deposit already paid). Once settlement has taken place, ownership of the property will have legally been transferred to you.

Stamp duty is to be paid either at settlement or within 3 months of the date of the Contract (whichever is the earlier).

6. Post-settlement procedures

Your solicitor or conveyancer will inform you when settlement has been successful after which you will be able to collect your keys. Once you have the keys, it is a good idea to update your details with the relevant authorities and arrange the connection of various utilities (such as water and electricity) to your property.

Navigating the process of buying a property in Sydney can be complex, but with the right guidance and support, the process can be smooth and hassle free. Abboud & Associates Law Firm’s experienced property lawyers are here to assist you at every step of the journey, from contract review to settlement. We offer our clients a fixed fee conveyancing service for $1,490.00 (+ GST and disbursements), ensuring there are no surprises at the end of your matter. Contact us today to discuss your next property purchase.