Pitfalls of Conveyancing
There are plenty of people who take buying or selling real estate for granted. Yet, it is an area that requires a fair amount of knowledge and experience to ensure your real estate transaction proceeds to a timely and satisfactory conclusion.
Some pitfalls that lie out there:
- When selling real estate which has a mortgage it is imperative that the mortgagee is given plenty of notice so it is ready to hand over the title to the property on settlement day. If you don’t have the title, you don’t get the money and your settlement is delayed. If you have a mortgage, interest will keep ticking over until the delayed settlement takes place. We see it happen far too often when we act for Purchasers and we can’t settle because the Vendor’s Solicitor or Conveyancer did not organise the outgoing bank in a timely manner. The poor Vendor pays unnecessary extra interest to the outgoing bank.
- On the other hand, in most contracts, the Purchaser will be liable to the Vendor if the Purchaser does not settle on time. The most common cause of delays by the Purchaser is that the incoming bank has not prepared in a timely manner. If you don’t have the money you don’t get the keys and settlement is delayed and more likely than not, you have to pay interest to the Vendor.
“Quite a few Solicitors and Conveyancers do not address the issue of GST as well as they should do so.”Joe Vizzone, Partner at Vizzone Ruggero Twigg Lawyers
GST requires careful consideration. Your Lawyer/Conveyancer should ensure that as a Purchaser:
- You are not required to pay GST if you do not have to.
- If you have to pay GST then the transaction should be concluded in a manner which allows you to recoup the GST paid by you.
- As a Vendor you do not get caught paying GST unless you are using what is called “the margin scheme”.
In our experience, quite a few Solicitors and Conveyancers do not address the issue of GST as well as they should do so. It is vital you engage a Solicitor or Conveyancer with a sound knowledge of GST.
- Land Tax is the same. Both Vendors and Purchasers need to be properly advised on the issue of Land Tax in every property transaction. A lot of contracts require Purchasers to contribute land tax which could be thousands of dollars.
You need someone who knows what they are doing. Our Conveyancing Team, Joe Vizzone and Sandra Caldwell will get you through the process and protect your interests at all times in a competent and professional manner. Call our Conveyancing team at our Mascot Office on 96671271.