If you cautiously check all the important areas of likely problems then you may save yourself from a multitude of troubles afterwards. Well, major considerations that you should check while buying a house property is mentioned below (your checklist):
All through Australia, different types of titles are used. For instance:
- Strata: This is used for flats as well as for multiple living areas like retirement villages. Normally, you will get a title for your individual property and for your parking space (if you obtain one). You’ll also have obligations for the common area through a structure known as a body corporate.
- Torrens: As this title is registered, it provides the buyer with a guarantee of “good title” and so this is the most frequently used title.
- General Law (aka Old System): This title was widely used in the past. It was formed with the help of chain of deeds and you had to ensure all the links of the chain were in place to ascertain ownership. As of now, not many titles with general law prevail.
- Company Share: In this type of structure, you don’t own a title; instead, you’re apportioned shares in the company, which owns the title. And when you sell your property, you have to transfer your shares to the company. This too is rarely in use lately.
- If a property has a caveat or a mortgage, it does not reveal that the property cannot be sold; however, to provide you with a “clean title” it is the responsibility of the seller to eliminate them before or at settlement time. Bear in mind that most of the properties would have a mortgage, which the seller will pay off with the money that he gains from the settlement.
The most crucial aspects are the building’s structure; for instance, electrical cabling, plumbing, wetness or cracks in the walls as well as the foundations.
- Inspect all plumbing including drainage from the bath and other outlets. Look out for signs of growing wetness, the condition of tiles, guttering and roof.
- Inspect the condition of all electrical wiring and are the electrical switches working properly. It’s good if you hire a licensed electrician for the complete inspection of the electrical section.
- Check the condition of the fences, roof, gutters, bare pipes etc., for any cracks.
- Check to see if there is any building part, which overhangs an adjacent property.
- Check for any indicators due to rain damage or leaks.
- Are there any council notices concerning local flooding.
If you would like to know more about electrical inspection then here is a comprehensive guide on electrical inspection that you must read.
Inspect the Boundaries
Do the original boundaries of the property match to those on the property’s title. Verify the measurements of the property’s boundaries. This exercise will give you with a chance to have a good look at the property’s fences. It is always better to find out if property’s structure or fences intrude onto neighbour’s property. Also, examine the condition of fences – whether or not they will require repairs or paint (because fences do cost money).
Buying the Plan Before the Property Is Constructed
Nowadays in the property market, this term is generally used particularly for apartments. Buying a property that is just an architect’s plan is referred as ‘Buying off the Plan’ wherein the property’s construction is not completed or haven’t yet commenced.
In this type of an agreement, the deposit paid secures the property as well as the contract, and the balance is paid when the property is ready, after the construction work is over. If the duty is payable on just land value at the date of the contract of sale, it would yield substantial stamp duty gains.
Nonetheless, contracts for these sales can get quite complex and it is vital to acquire independent legal guidance. Prior to entering into it, it is imperative to know the nature of this kind of transaction. Amidst other things, ensure you also know:
- During the waiting period (i.e. until the building construction gets over), do they (i.e. builder) have a strategy in place, for providing temporary accommodation?
- Will they maintain an appropriate standard of the work?
- After the construction is over and property is ready, how will it look like?
- Can the builder furnish some of their previous work for inspection to validate their experience?
- Is there a probability that the builder may alter the plan and the outcome?
- What will happen if the construction is not completed on time and the property completion is delayed? Will it necessitate a local council’s recommendations for altering the original plan and its outcome?