Did you know that there are four separate elements involved in a successful house purchase? If this is your first time at the rodeo, so to speak, you may be quite apprehensive at the thought of purchasing your first home and may wonder what you need to do to make sure it all goes smoothly. Research is crucial, especially when it comes to these four individual elements, so where should you start?
- If you are negotiating to buy an existing property, then somebody else, whether an individual or a corporation, has legal ownership and that will in many cases involve an existing mortgage. Step number one, therefore, is to make sure that the mortgage has been cleared or will be at the moment that you sign the closing papers.
- Secondly, you need to look a little more deeply and uncover any special terms or "caveats," that may be attached to the property. Sometimes, the individual who owned it before you may have taken out a loan of some kind and that had been secured against this particular building. Of course, this also needs to be cleared before you can take ownership.
- During the course of your negotiation, you may have agreed that certain fixtures or fittings are to be included in the sale whereas they may otherwise not have been, or you may agree to specific terms that are non-standard. All of this information needs to be included in the documentation; remember, verbal agreements will not count in the event of a dispute.
- Finally, you have to make sure that the transaction is registered with the various government departments, as otherwise it may not be considered to be official. Also, this will form the basis of your legal responsibility and make sure that you are entered into the system for various taxes and rates.
Clear and Concise
As always, the devil is in the details. You will need to include specific wording within the contract and be very clear so that all conditions can be met, and you can avoid disputes in the future. The detail needs to include a clear definition of responsibility so that each party knows what they need to do to bring the matter to a close.
Remembering the Details
When you go through the home and discuss the potential purchase with the seller, make a clear note of this conversation while it is all fresh in your mind. Make sure that any details – if necessary – are transferred to the contract accordingly.
The Right Help
It's best if you work with a licensed conveyancing agent to help you get all this right, especially as it is your first time. Remember, a conveyancer is trained in these issues and will be by your side at all times.Share