This is a guest post written by Debbie Hutton, a Licensed Conveyancer in Tasmania and the owner of Debbie Hutton Conveyancing.
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Have you fallen in love with a property in Tasmania and now wonder how you can own it?
Purchasing property in Tasmania is quite different to a number of other states of Australia. The major difference being – there is no Vendor disclosure in Tasmania. You must ensure you are completely satisfied with the property you are buying. Find out as much as possible about the property prior to signing a contract, for example, the applicable zoning; whether there have been any additional building works carried out, if so, are they council approved. Talk to your conveyancer or solicitor before signing any contract.
A contract is prepared (usually by the selling agent) subject to certain conditions being met before all parties are “locked in”. The most common conditions are:- that the purchaser must obtain a loan approval (finance), – sell an existing property and/or – obtain a building report. A standard building inspection clause in Tasmanian contracts restricts the termination of the contract on the grounds of “structural defects” only. For example you cannot “get out” of a contract because of badly rusting roofing iron or other “cosmetic” items.
Good News!!! Pest reports are not generally ordered…. there are no white ants!!! You may have seen in your travels there are lot of older buildings in Tasmania and most of them are as sound as the day they were built, many moons ago.
Another difference is the deposit requirement. Whilst a reasonable deposit is usually expected on contracts, it is not set at 10% of the purchase price as in some other states. The amount of deposit is negotiated between Vendor and Purchaser.
Generally a contract is signed by the purchaser first and presented to the Vendor as the purchaser’s offer. If the vendor accepts the offer, they sign and date the document. This then becomes the binding contract. Both the Vendor and Purchaser will be bound by the contract, so ensure that it accurately reflects the agreement made between you and Vendor. There are two “standard” types of contracts in Tasmania; however, both can be amended during the negotiation stage. It is not so easy to have a contract amended after it has been signed.
As buying or selling a home is likely to be one of the biggest financial decisions you will ever make, it is important that you use an experienced conveyancer / solicitor that you can trust. When requesting a quote for conveyancing services, ensure you find out what searches are being obtained, and whether the Land Titles Office registration fees are included in your quote. In Tasmania, the lender (if applicable) does not deduct the registration fees from the loan, they are payable by you at settlement.
In addition, Stamp duty is payable on all Tasmanian property transfers and is paid at or within 3 months of the date of settlement. For information on applicable stamp duty, please contact your conveyancer or solicitor. Information on stamp duty can also be obtained from the State Revenue Office website – www.sro.tas.gov.au.
For additional information contact a Tasmanian conveyancer or solicitor. You are welcome to browse my website at http://www.debbiehuttonconveyancing.com.au/.
Disclaimer: This is general advice only and may not be applicable to your particular situation.
This is a guest post written by Debbie Hutton, a Licensed Conveyancer in Tasmania and the owner of Debbie Hutton Conveyancing.
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