When you are building a new home there is the process of transferring ownership of legal title from one entity to another – Conveyancing. There are important things to consider to ensure that there are no settlement delays or unexpected costs. Conveyancing for a new build project is vastly different to purchasing an existing property and a specialised and experienced lawyer is recommended.
Here are some points to consider when you deal with conveyancing for a new build:
Contract Of Sale
Because you are about to purchase a house that has not yet been built. The contract of sale is the most important document. You need to make sure it covers all bases so you get what you are paying for.
A Conveyancer such as Law & Co can review the contract of sale to make sure that it correctly matches, in writing, what the builder has promised you. Remember that the contract of sale must contain a comprehensive list of fixtures, fittings and finishes.
The contract could have allowances for the builder to make changes to the build. For example, minor changes may need to be made to the plans because of a council planning requirements. Therefore there should be a provision in the contract to allow the purchaser to cancel the contract should these changes significantly affect the property.
The list of inclusion should be listed in the contract. A clause could be included that states the builder reserves the right to replace the listed inclusions with those of a similar quality should the originals not be available.
You should also check warranties, making sure that you are protected from any unjustified changes that the builder may make.
Your Legal Rights
Ensure you know your legal rights when building off the plan. Things to consider are, what can you legally do if the construction is delayed significantly? Can you cancel the contract? What are the costs if you do so?
Your conveyancer can advise on stamp duty costs. You may be eligible for concessions and/or grants such as the First Home Buyers Grant. Victoria, for example, has generous stamp duty savings for new home builds.
Joint Property Ownership
If you plan on buying a property with someone else, you will need to consider the purchase as either a Joint Proprietors or as Tenants-in-Common. If you are unsure about the structure, you can add in an “and/or nominees” clause which gives you flexibility and time. You may be charged Government Stamp Duty twice if you don’t have this clause and you change the ownership structure as it is assumed the property has transacted twice.
There are also many other factors that you have to be aware of that you should discuss with your conveyancer or lawyer. These include but are not limited to:
- Proposed plans & floor plans
- Finance and pre-approvals
- Cooling off period
Conveyancing for a new build
As you can see, there are many legal implications and scenarios that need to be accounted for around conveyancing for a new build. Find out more about Law&Co’s transparent and competitive pricing for off-the-plan, house and title transfers.
Law & Co offers a wide range of services relating to property title transfers. Their online conveyancing model ensures a more streamlined, stress-free, and transparent service compared to traditional offerings. Get started now, or speak to one of our lawyers on 1300 776 775.
Source: Law & Co.
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