“Teamwork makes the dream work”, and this is especially true of real estate transactions. When purchasing or selling a property, you will come across the same actors, and while each transaction has its Uneek twist, the cast remains the same. No one actor is the hero, but instead, each has a role to fulfil, and we will try and outline some of these. So, who are the types of people that you will potentially come across?
The Real Estate Agent
The Real Estate agent is one of the actors you will meet in the initial stages of your Real Estate transaction. The Real Estate Agent, in most cases, is paid by the seller. However, without a valid purchaser, there would be no transaction. So they are generally required to be in the difficult position of wearing two hats and pushing towards a mutually beneficial outcome. A great real estate agent will play the precarious position between purchaser and seller very well, and their reviews from both sellers AND purchasers will be a testament to this. They usually have an excellent support team who also play their roles in handling access requests and keeping everyone updated of the progress.
A Real Estate Agent will, amongst other things:
- Advertise the property to purchasers and the world at large.
- Negotiate sale terms between the sellers and potential purchasers.
- Arrange for the contracts to be signed once an offer is accepted.
- Arrange inspections for inspectors or bank valuers on behalf of purchasers.
- Ensure a smooth handover of the property at the time of completion.
The Banker or Mortgage broker
The banker or broker that you work with will be in contact to help obtain finance for your purchase. We would suggest that even before you start your property search, you are in touch with a broker or banker to get an accurate understanding of your finances and get a pre-approval in place.
Once a contract is signed, the banker/broker will be mostly responsible for:
- Obtaining “unconditional” loan approval and liaising between the bank and yourself for any outstanding requirements.
Assisting with any loan documentation and understanding the same before signing (sometimes your conveyancer or solicitor can do this for an additional fee). - Ensuring the bank is ready for settlement before the settlement date or managing expectations if there are any delays (this is often a shared responsibility between the broker/banker and the conveyancer/solicitor).
- Ensuring any financial complexities are clarified and thoroughly planned before settlement (example, refinancing one property to pay for another out of equity or proportioning the land loan component out of a land and construction loan).
A banker or broker is often paid a commission or a wage by the bank you are getting the finance from. When you are selling your property, a good banker or broker will also assist in helping you discharge any mortgage you have over the property.
Building/Pest/Strata Inspectors
These professionals are often enlisted for established properties by purchasers (sometimes by sellers as well) to provide technical insight into the property to help make an informed decision. A building inspector will often help check whether a property has any issues which could cause concern that would not be visible to an untrained eye. A strata inspector can help a prospective buyer get a glimpse into any upcoming expenses for the common property, which may lead to things such as special levies.
Accountant and/or Financial Planner
Purchasing or selling a property will almost always have financial implications and required reporting to the Australian Taxation Office. Your accountant and/or financial planner (if they are not the same person) should be consulted about any taxation implications leading from your purchase or sale. We highly recommend purchasers seek financial advice related to taxation implications arising from the way the property is purchased (in an individual name vs in a trust as one example) taking into consideration their holistic financial situation. A seller may have a significant capital gain or have land tax implications on a property they are about to sell. Hence, a consultation with the accountant or financial planner prior to marketing the property is a must!
Conveyancer/Solicitor
At the heart of the conveyancing transaction is the written version of the agreement formed between the purchasers and sellers. All the terms of sale are to be documented into written format, and the conveyancer or solicitor will be responsible for helping create this agreement in the relevant form. The conveyancer/solicitor must ensure that the proper form of the written agreement is adhered to since anything missing may accidentally cause issues with the sale. The conveyancer/solicitor will help purchasers decipher the contract of sale and point out any terms that the purchasers may not have been aware of before signing the contract. In some cases, especially for established properties, a holding deposit is often paid to allow the purchaser time to carry out inspections and other checks during a “cooling-off” period. During this time, a conveyancer/solicitor will review the contract and advise the purchaser. The conveyancer/solicitor will also coordinate between the banks on either side to ensure that a smooth settlement occurs at the date mentioned in the contract.
A conveyancer/solicitor will also help manage expectations and walk sellers and purchasers through the process as it is expected to occur including, but not limited to:
- Provide a legal backboard for any transaction related changes/actions a purchaser or seller may wish to make.
- Provide an overview of the funding required for the transaction.
- Attend to ensuring purchasers gain any benefits they are entitled to and make any payments required to the relevant state Revenue authority
Ensuring a clear property title is handed over to the new purchaser or their bank.
Often and especially for off the plan purchases, the conveyancer/solicitor will also help outline and highlight any risks of the transactions which you must be aware of. Any peripheral legal issues such as the creation or updating of a will should also be considered at this point when you are purchasing or selling an asset.
While the roles and responsibilities above are not exhaustive and Uneek situations may see other roles introduced, a smoother settlement for a purchaser or seller will always occur when all the actors work in synergy rather than simply “carrying out their bit”.
Contact Uneek Conveyancing for all your conveyancing needs today.