So what is Stamp Duty and why do we have to pay and where does the money go?
It adds to the cost of buying a property and can be a nasty surprise to some people when they are adding up the sums to do their budget.
Stamp Duty is a tax on certain acquisitions including gifts, home loans, insurance and of course real estate.
It has to be paid to your local State or Territory Government within 30 days of the date of purchase settlement. The State and Territory Govts then re-invest the duty in services for all in the community – police, health, education, roads, transport and emergency services to name a few.
As Stamp Duty is decided and managed by the various State and Territory Governments the rate of stamp duty can vary from state to territory and possible exemptions and discounts can vary as well. First home buyers for instance may receive a discounted rate in some states to help get people into the housing market.
For those of you here in Victoria just click on this link to get more detail on Stamp Duty including access to a calculator and a list of exemptions and concessions.
The CEO of the Real Estate Institute of Victoria (REIV) posted an interesting article in early January postulating on what might be the market trends for property in Melbourne for the coming year.
A combination of low stock levels, low interest rates and strong population growth should encourage buyer interest well into 2017. It bodes particularly well for vendors in the outer suburbs with their properties, on average, being snapped up within 28 days.
Read the full article including the yearly wrap and the top 10 suburbs to look out for in 2017 from the REIV here.
Conveyancing is the transfer of ownership or interest in real property from one person to another.
Conveyancing is usually completed by a licensed conveyancer (us) or a solicitor. You can do it yourself, but the complexity of the Federal, State and Local laws makes it an unwise choice.
The conveyancing process typically takes four to six weeks and includes, but is not limited to, the following:
- Title searches
- Checking for encumbrances and restrictions on the property
- Ensuring any special conditions mentioned in the contract are met
- Making sure rates, land tax and water consumption charges are paid by the appropriate party
- Arranging for the payment of fees and charges
- Preparation of legal documents.
So you have accepted their offer, congratulations! What next?
A deposit is usually paid within 7-14 days of the signing of the Contract of Sale. You may be entitled to receive the deposit monies earlier than the date of settlement. This will depend on various factors. The purchaser needs to authorise the release of deposit monies. A co-operative relationship the between the seller and the purchaser can have a positive impact on the deposit being released earlier rather than later.
We can prepare the relevant documentation to assist in the early release of the deposit.
The purchaser may include special conditions in the Contract of Sale when the offer is made. A common clause used is ‘subject to finance’. This means if the purchaser has not secured finance approval by a certain date they have the option of not proceeding with the purchase.
Subject to building inspection, pest inspection and the 3 day cooling-off period are also options for the purchaser not to proceed.
No, you do not have to attend settlement.As part of our conveyancing service we will attend on your behalf. At settlement, balance of payment is received on the vendors behalf, title documents are verified and exchanged.
As part of the conveyancing service we provide, we will advise the council and water authorities of the change of ownership.
You need to notify the Gas, Electricity, Telephone, Vic Roads, Electoral roll and other organizations that you have dealings with.
So, You have decided to purchase a property.
You can sign the Contract of Sale once you are happy with the property that you wish to purchase. Depending on your level of knowledge and experience, you should contact our office to ensure that you do not miss any important clauses which may have a significant impact on your settlement.
You may arrange your finance prior to signing a Contract, however, if you have not done this you may arrange for the Contract to include a “finance clause” which provides you with time to make the necessary arrangements. Finance can be arranged via your Real Estate Agent, or we can assist you with the various lenders and finance brokers that we are confident will help guide you in this process.
If your finances are not arranged correctly, settlement may be delayed in which case substantial additional costs may be incurred.
We will arrange settlement of property, and take care of any complexities on your behalf. Settlement usually takes place at 30/60/90/120 days intervals from the signing of the Contract, or the date mutually suitable to yourself and the vendor.