Knowledge Base

Do I need to obtain a building and pest inspection for the property I am purchasing?

You may elect to insert building and pest inspection conditions into your Contract of Sale when you purchase a property to ensure that the property is structurally sound and free of termites. We note pursuant to the standard REIWA building and pest inspection annexures, that the vendor may only be obliged to rectify defects that are deemed "major structural defects" or eradicate "live termites" depending on the wording of the condition in the Contract of Sale. We strongly suggest that you read your Contract of Sale thoroughly prior to execution and if you require assistance seek legal advice prior to execution. We note that if you do not apply for these reports and serve the reports and Defect Notice or Pest Notice on the selling agent/vendor's representative on the required date you may be deemed to have waived the benefit of these conditions.

What happens if I am not ready to settle on my contractual settlement date?

We note that you may be contractually obliged to complete settlement on the date set out in your Contract of Sale. Pursuant to the Joint Form of Conditions for the Sale of Land 2022 that govern the sale of property in Western Australia, if you are not able to complete settlement within three business days from your contractual settlement date, the vendor may be in a position to charge you penalty interest. It is important that your settlement agent and bank ensure that you are ready to settle on your contractual settlement date.

What is conveyancing?

Conveyancing is the legal transfer of the ownership of a property from one owner to another, either to a person or entity. It involves drawing the required documentation and attending to execution by you in accordance with legislation, applying to the rating authorities/government departments to apply for property enquiries on your behalf, searching the Certificate of Title to ensure that clear title is provided at settlement free of encumbrances, attending to an adjustment of outgoings (council rates, water corporation charges, strata fees (if applicable)) between the vendor and purchaser. Your settlement agent will also liaise with your bank and other settlement agent working forward to settle on the contractual settlement date.

What is Pexa?

Pexa is the electronic platform in which most settlements take place. ‘PEXA’ stands for Property Exchange Australia and is an Electronic Lodgment Network (ELN) in which provides the transfer of the Certificate of Title to the property to the purchaser and the transfer of settlement monies to the vendor at settlement together with the payment of stamp duty, registration fees etc to the applicable parties at settlement.

I have signed a Contract to sell/purchase a property. What should I do now?

Once you have attended to execution of your Contract of Sale, you will be required to instruct your selling agent (if applicable) of your appointed settlement agent in order that the selling agent may forward a copy of the Contract of Sale. We note that if you hold a fully signed copy of the Contract of Sale, you may also forward this to your settlement agent to commence the conveyancing process. We suggest that this is done in a timely manner in order that your settlement agent may diarise your critical dates and liaise with you to ensure that all conditions are met.

Understanding Property Purchaser in Western Australia – No Cooling-Off Period explained

Are you considering buying property in Western Australia? If so, it's essential to understand the unique aspects of the property purchasing process in this state. One crucial distinction to be aware of is that Western Australia does NOT have a "cooling-off" period like some other states in Australia eg. Victoria. The absence of a “cooling-off” period means that once you sign a Contract to purchase a property in Western Australia, you may be typically bound by that Contract without the option to back out without consequences.

What is a Cooling Off Period?

In other states in Australia, property purchasers may have the benefit of a “cooling-off” period after signing a Contract of Sale. During this period, purchasers have the option to terminate the Contract for a percentage of the sale price and have the deposit moneys be refunded to them to them less the “cooling off” fee.

Western Australia’s Distinct Approach:

Property purchasing in Western Australia operates differently to other states in that there is no “cooling-off” provision. Once both the purchaser and seller have signed the Contract of Sale, it may be a legally binding and there may be no cooling-off period. This means that buyers in Western Australia need to be certain about their decision before signing the Contract as withdrawing afterward could have significant legal and financial implication.

The Importance of Due Diligence:

Given the absence of a cooling-off period, conducting thorough due diligence before signing a Contract is crucial for property buyers in Western Australia. This includes:

Property Inspection: Arrange for a professional inspection of the property to identify any structural issues, defects, or maintenance concerns.
Legal Advice: Seek advice if required from a qualified property lawyer who can review the Contract of Sale, advise you on your rights and obligations, and identify any potential risks.
Financial Preparation: Ensure you have your finances in order and understand all associated costs, including stamp duty, conveyancing fees, and any other expenses related to the property purchase.
Research: Research the local property market, including recent sales data, property values, and any upcoming developments or infrastructure projects that may affect the property's value or desirability.

Working with Experienced Conveyancers

Navigating the property purchasing process in Western Australia requires careful attention to detail and a thorough understanding of the legal requirements. Working with an experienced settlement agent who specializes in Western Australian property can provide you with invaluable guidance and peace of mind throughout the transaction.

Melinda at Northern Suburbs Conveyancing is knowledgeable with more than twenty years experience in the industry and dedicated to assisting her clients with their property transactions in Western Australia.

While the absence of a cooling-off period in Western Australia may seem daunting, with careful preparation, due diligence and the guidance of experienced professionals, you can navigate the property purchasing process successfully.

VALUES & RATES FOR FIRST HOME OWNER RATE OF DUTY HAVE INCREASED

How is the first home owner rate of duty changing?

For transactions entered into on or after 9 May 2024:

the unencumbered value of the home and land together must not exceed $600,000 (increased from $530,000)
no duty will be payable if the dutiable value does not exceed $450,000 (increased from $430,000) and
if the dutiable value is between $450,000 and $600,000, duty will be payable at a rate of $15.01 for every $100, or part of $100, by which it exceeds $450,000 (decreased from $19.19).

The previous rates continue to apply to agreements entered into before 9 May 2024 even if settlement occurs after this date.