5 General Conveyancing Tips For First-Time Home Buyers
For a first-time homebuyer, buying property could seem like a straightforward activity. Furthermore, you probably know a few friends and family who have purchased homes in the past. However, once you commence the process, you will realise that it is not as easy as many would assume. Below are some conveyancing tips you should consider as you purchase a property. Hopefully, they will ease the buying process and protect you from future liabilities.
1. Always Conduct Due Diligence Before Buying The Property
For most people, due diligence is ensuring that the property is registered in the seller's name. However, it involves much more. For example, your conveyancer should request the property construction permits and certificates to know whether the builder ignored enforcement notices by the certifier. Additionally, the conveyancer should check whether the construction work meets the standards set by the local building code.
2. Assess Your Financing Options Before Signing The Contract Of Sale
A mistake made by many buyers is assuming that their bank will automatically approve their mortgage application since they have a good credit score. As such, they get disappointed when their mortgage application takes too long. It would be wise to assess your financing options before appending your signature on the contract of sale. Ideally, your conveyancer should meet with your bank and ask for a mortgage preapproval letter. Additionally, they should negotiate for good interest and repayment terms.
3. Negotiate For Minimal Deposit
The mortgage preapproval letter is not a guarantee that you will receive financing. For this reason, you should negotiate for a lower security deposit with the seller. This is a risk management strategy that ensures you do not lose your hard-earned cash if you cannot secure financing.
4. Check The Contract Of Sale For Minor Errors
Most buyers will critically evaluate the terms of the contract of sale. However, they forget to check the minor details. For instance, misspelling your name or indicating the wrong dates on the contract of sale could have severe implications. It is your conveyancer's work to ensure that the agreement meets the required standards.
5. Remember To Include Contingencies In The Contract Of Sale
Contingencies refer to conditions that either party should meet before the closing date. Many buyers assume word-of-mouth arrangements are sufficient. However, some sellers might take advantage of these oversights. It is therefore vital to include all tiny details in the contract of sale.
Your conveyancer should help out with the above activities to ensure you have an easy time buying your first home. The primary benefit of conveyancers is that they have liability insurance to protect you from conveyancing errors. Contact a company that provides general conveyancing services to learn more.