What do I need to look for when buying a property?
What do I need to look for when buying a property?
The common form of contract for the sale of real estate in Victoria provides that the purchaser buys the property in its current condition, and any omission or mistake in the description of the property or any deficiency in the area of the land does not invalidate the sale. Accordingly, a purchaser should test and document what appliances are in working order on the day of sale, including hot water service and any heating/cooling, as well as measuring the land to the nearest intersection to ensure the property fences are on the correct boundary.Purchasers should also take note of any improvements or structures that appear to have been built within the preceding 7 years, or that are placed close to property boundaries where easements are commonly located. In addition to the requirements set for the vendor under section 32 of the Sale of Land Act 1962, they may also be additional requirements pursuant to section 135 and 137B of the Building Act 1993 which need to be met before a vendor can enter into a contract to sell a property, and failing same, the contract will be voidable at the option of the purchaser at any time before settlement. If you are purchasing into an owners corporation, it is important to review the owners corporation certificate, minutes of the last annual general meeting, and owners corporation rules to ensure you are satisfied with the current position of the owners corporation. You should take note of any large item works that may need to be completed in the future such as replacement of windows, resurfacing the driveway, or any structural issues, and where present ensure that that the maintenance fund of the owners corporation is sufficient to cover any costs associated with the works.
The best way for a purchaser to protect themselves is to have the sale documents reviewed by an experienced conveyancing expert. To encourage purchasers to protect themselves, ConveyancingX offer free contract reviews (excludes off-the-plan purchases and fair-use policy applies).
Further information on what to look out for can be obtained by contacting our office or from the State Revenue Office website here: https://www.consumer.vic.gov.au/duediligencechecklist
