Buying a property is an exciting time, and sometimes finding what you think is your dream home can cloud your vision and possibly lead to bad decisions. It is important to engage with a solicitor or conveyancer to ensure everything is legal and above board, and that you are not going to be landed with a property that comes with a whole heap of problems.
The very first thing that needs to be confirmed is who the registered owner of the property actually is. Only the name of the person, persons, trusts or companies that appear on the Title Deeds have the legal right to sell that property, and a Certificate Of Title from Titles Queensland will be able to confirm who that is.
An Encumbrance Check can then confirm if there are any legal claims, restrictions or liabilities attached to the property’s title. If money is owed on mortgages or there are easements allowing others the right to use part of the land, this can be transferred to the new owner. Legal claims by government bodies, caveats, restricted covenants or unpaid rates can lessen the value of the property or restrict the owner’s rights, but will not prevent property transfer and so can be inherited by the new owner.
Local Council and Planning Searches
These searches are essential to protect the buyer from any hidden financial liabilities, legal issues and restrictions that could not only affect the value of the property, but also severely limit the use and enjoyment of a new home.
Nobody wants the surprise of hidden costs, so it is important to know if any requisitions or notices have been issued by the local council that require the seller to perform work on the land. It is also important to verify that all buildings, sheds, decks and renovations have formal council approvals and final certifications; otherwise, unapproved structures will become the buyer’s responsibility.
It is useful to know if there are any planning development applications nearby that may have an impact on the property’s value or amenity, and to determine if the property is in a flood-prone area or on the Environmental Management Register or the Contaminated Land Register.
Contractual and Compliance Searches
It is important to uncover any hidden issues that can impact the use or value of your property before you enter a legally binding contract that can end up causing you significant financial losses. If you are buying a townhouse or a unit in a community titles scheme, body corporate records will detail the community titles scheme administration, including any finances and insurance policies, to provide transparency and protect the owner’s rights.
You will also need to ensure that all municipal rates and land taxes for the property have been paid up to date, and verify in writing exactly which items are actually being sold along with the property.
Unless items are written into the contract, they may be gone by the settlement date, and you may find yourself without any fixtures, fittings or curtains when you move in. Clarify everything, such as dishwashers, fridges, garden sheds or even pool equipment, to avoid disappointment.
Building and Pest Inspection
Whilst not strictly a legal requirement, this step is crucial to protect the buyer in case any major issues are found. The seller must provide a disclosure report, but it is crucial the buyer verifies this with their own licensed building and pest inspectors, so they are not left with any costly surprises.
However perfect your new home may seem, it is crucial to protect yourself and not inherit any unforeseen problems.
