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News » Current articles » Buying a Property Question and Answer Guide Pt. 1

Buying a Property Question and Answer Guide Pt. 1

Looking to buy property? Ken Mackinnon, Partner of our Property Law & Conveyancing details some of the considerations that should be made prior to making a formal offer to purchase a property.

QUESTION:

I am about to make a formal offer on a property.  What are some of the conditions that I should include to protect my interest?

ANSWER:         

Each property is different and there is no one size fits all approach to apply. Depending upon your circumstances a prudent purchaser should consider making their offer to purchase a property subject to:

1)         The sale of your existing property;
2)         Obtaining a building report;
3)         Obtaining a pest inspection report; and
4)         Obtaining finance.

Additional matters you should investigate/undertake prior to making a formal offer are:

5)         Checking with Council to see if the use of the property is permitted.  There is currently a case of a property in Richmond which was reportedly in a Business Only Zone but had been converted to a residence.  The Purchasers paid $1.85 million and Council have evicted the Purchasers as it is not zoned Residential.  Needless to say all concerned are now being sued;
6)         Checking the measurements of the property and if being developed for units then the actual area may be vital and should be checked.  Do not rely on any prior representations – check it for yourself;
7)         Considering whether or not vacant possession is being given;
8)         Considering whether or not GST is payable;
9)         Investigating what chattels are included in the purchase;
10)       Checking for Covenants; and
11)       Checking for 173 Agreements and ensure that the property complies with the terms of the Agreement.

Please contact Ken Mackinnon, Partner of our Property Law and Conveyancing Department at kmackinnon@richbenn.com.au in the event you have any queries in relation to this content or Property Law and Conveyancing matters generally. 

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