FAQ's

A real estate transaction is associated with many costs and expenses beyond just the sale price. A prior understanding of the costs can help you plan your budget smartly. Some of the common expenses you must account for when buying property are:

• Stamp duty
• Fees and charges related to obtaining a mortgage
• Search costs
• Registration fee
• Conveyancing fee
• Moving costs
• Taxes and rates over the period for which you will own the property

A buyer’s agent acts exclusively on your – the buyer’s – behalf. The agent helps you identify properties suited to your needs, organises inspections, negotiates the selling price and contract, and monitors the contract from sale to settlement.

A Strata Title is a type of ownership where the individual (buyer) owns part of the property (a lot, townhouse or apartment) and shares ownership in the rest (common property comprising gardens, driveways, etc) through a community association or owners corporation.

After the contracts have been exchanged, a provision called the cooling-off period allows the buyer to have a change of heart and cancel the contract. During this period, the seller is forbidden from selling the property to another buyer. A cooling-off period does not apply if you have successfully bid at a property auction.

While you are permitted by law to do your own conveyancing, it is a specialized job best left to a professional conveyancer. Make sure you know what you are doing or you risk delaying the settlement.

You don’t have to pay GST if you have bought an already established home. However, in case of a newly-built home, GST would have been applicable to the goods and services used in constructing the home, which will reflect in the overall cost of the building. Building and pest inspections, and property valuation may attract GST.

A contract can contain different types of special conditions. These include a financial penalty in the event of a delay, soil tests etc.

While it is not necessary to have insurance until settlement, it is best to organise insurance from the time of exchange. If you move into the property before settlement, the seller may want to make an arrangement where you are responsible for insurance starting from the time you take possession.

Real estate auction sales are unconditional, meaning you cannot cancel the contract if your loan application is rejected. They are typically intended for buyers who have ready cash to complete the purchase. For a first-time homebuyer who almost always seeks financing to purchase, an auction can be a huge risk if the home loan is not approved.

Yes, there are two types of shared/co-ownership you can consider. Joint tenants is one, where you and the other individual (spouse or other) own equal shares of the property. Tenants in common is another form of co-ownership, where the two owners can hold equal or unequal shares of the property.