Buying & Selling Property

We frequently assist clients with a range of property transactions. While buying and selling property can be an exciting time, it can also be a complex and stressful process. Whether buying or selling, it is important to understand the legal and financial aspects of the transaction and seek professional advice where necessary.

Buying Property

Prior to buying a property, it is vital that you conduct your due diligence. This involves researching the property to identify any issues or defects, such as ordering a building inspection, pest inspection, and reviewing council and/or Owners Corporation (formerly known as Body Corporate) records.

You should also seek expert financial and legal advice to ensure that you are making the right choice. A lawyer can assist you in reviewing the terms of the contract and any loan agreement to ensure that you fully understand your obligations.

Selling Property

As a property seller in Victoria, you have certain legal obligations, such as providing a copy of the title search, obtaining a statement of rates and charges, and disclosing matters that affect the property.  This could include build over agreements or discrepancies with the title. A lawyer can advise you on your obligations as a vendor, prepare your contract for sale, and ensure that the relevant disclosure material is included.

Method of Sale

Private treaty and auction are the main methods of sale in Victoria. Your choice of method will depend on a range of factors, including the type of property being sold, the current state of the property market, and your personal preferences.

In a private treaty, the property is listed for sale at a fixed price or price range. Potential buyers are able to make offers on the property, and negotiations take place between the seller and the buyer to agree on a final sale price. This method of sale is generally preferred by sellers who want more control over the sale process and who are willing to wait for the right buyer to come along.

One advantage of private treaty is that it allows for more flexibility in the sale process. The seller can choose when to list the property for sale and can set a price that they are comfortable with. This method also allows for negotiations between the seller and buyer, which can lead to a mutually beneficial outcome.

However, private treaty sales can take longer than auction sales, as there is no set deadline for the sale to be completed. This can lead to uncertainty for both the seller and the buyer. Additionally, private treaty sales are less transparent than auction sales, as potential buyers do not know what other buyers are offering.

Auction is a method of sale where potential buyers bid on the property in an open and competitive environment. The property is listed for sale with a reserve price, which is the minimum price that the seller is willing to accept. The auction is held on a specific date, and the highest bidder at the end of the auction is the successful buyer.

One advantage of auction is that it creates a sense of urgency among potential buyers. The auction date sets a deadline for the sale, which can help to speed up the sale process. Additionally, auction sales are transparent, as all potential buyers can see what other buyers are offering.

However, auction sales can be unpredictable, as there is no guarantee that the property will sell on the day of the auction. This can lead to uncertainty for the seller, who may have to relist the property for sale if it does not sell at auction. Auction sales can also be stressful for both the seller and the buyer, as the bidding process can be competitive and emotional.

Joint Tenants or Tenants in Common?

When purchasing a property with somebody else, your lawyer will ask if you want the title to be held as “joint tenants” or “tenants in common”. While joint tenancy is the most common form of ownership between spouses and domestic partners, it is important to understand the implications of each before making a decision.

Joint tenancy means that both people own the property, and neither can sell their “share” to a third party. If either person dies, the property will automatically belong solely to the surviving owner (or owners if more than two joint tenants). A joint tenant cannot make arrangements in their will to leave their share to someone else.

In contrast, if you hold property as tenants in common, each owner possesses a distinct share in the property, which need not be equal shares. A share can be gifted in a will to someone other than the co-owner. The share may also be mortgaged or sold (with or without the consent of the other owner/s), although this can have practical complications.

It is important to understand the legal implications of your respective interests in property and we can help you make a decision that is most suitable for your circumstances.

If you need assistance with your conveyancing or property transaction, [email protected] or call 0414 939 448 for expert legal advice.