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Frequently Asked Questions – cumberlandconveyancing.com.au

Here are some of the information buyers and sellers need to know

Why and when should I engage a conveyancer?

Whether buying or selling real estate, it is essential to seek the service of a conveyancer who will undertake the legal work involved in preparing the sales contract, mortgage and other related documents as a seller, and review and highlight your rights and obligations as a purchaser.

By law, a vendor is required to have a contract of sale drafted before marketing the property. And it is important that the terms of the agreement are negotiated by both parties and should be closely reviewed by a conveyancer prior to signing the contract.

Can I exit the contract?

Once you have entered into the contract, you are legally bound and cannot exist just because you have changed your mind or you are unable to obtain finance. However, in some circumstances, if the other party is in breach of the terms of the contract, you may have a right to rescind.

Can settlement be delayed?

Usually, the buyer will be penalized for delay in settlement. The vendor can cancel the contract and even choose to sell the property to another party. However, contracts of sale give the vendor the right to delay the settlement for at least two weeks without penalty

When can I move in?

Usually, buyer can take possession right after settlement. Early possession is also possible, however the seller is not under any obligation to allow for it. Such situations, can be negotiated and agreed up on by both parties’ solicitors.

What if the property is not vacant, or belongings left behind?

When purchasing a property, the contract of sales indicates if you will obtain vacant possession, and have the right to exclusive use of the property. Or otherwise, subject to existing tenancy, where the tenant will remain in occupation, and pay rent to the buyer after completion of the sale.

Unless included in the inclusions section of the contract of sale, all items, belongings or rubbish must be removed by the seller prior to settlement.

What if a damage occurs prior to settlement?

If damage to the property occurs after exchange but before completion the options available depending on the nature of the damage, and the surrounding circumstances.

In some cases, the buyer may be entitled to exit the contract after he became aware of the damage, or to claim compensation for the cost of repairing the damage.

When should I take out an insurance policy?

For residential properties, the seller is responsible for the property and should retain insurance until the sale completes, it then passes on the buyer so it is important for buyers to take out insurance prior to settlement.

What is my tax liability as a vendor?

When you dispose of an interment property, you are liable to pay Capital Gains Tax on the profits you make. This is calculated by subtracting the cost involved in acquiring the property (including all expenses to maintain and hold the property) from the sale price. Any profit made on the sale will be included in your assessable income tax for that financial year.

Tax liability as a buyer? Stamp duty, land tax for investment?

When you are buying property in NSW, you are liable to pay stamp duty on the contract. The duty is calculated on the value of the property.

First home buyer may be eligible for exemption or discount depending on the value of the property.

Land tax is payable for all investment properties calculated yearly on the value of the land. It is generally the responsibility of the vendor to pay land tax. However, sometimes the contract will provide for land tax to be adjusted so that the buyer is liable for payment of the land tax from the date of settlement.

Please contact us for further information.

When is stamp duty due for payment?

Stamp duty must be paid within 3 months from the date of the contract. For off the plan properties, stamp duty is payable within 3 months of the date of:

  • completion of the agreement.
  • the assignment of the whole or any part of the purchaser’s interest under the agreement.
  • the expiration of 12 months after the date of the agreement, whichever occurs first.

If finance is obtained, generally the creditor will require the stamp duty be paid on or before settlement.