Buying Property Perth
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This website was created by Cap-It-All Building Inspections to assist Perth home-buyers through the process of buying property in Perth.
A coalition of affiliated professionals have united to share their combined experience and knowledge to empower property buyers to proceed confidently in their transactions whilst achieving the outcome of securing a client-for-life. This website is intended to give Perth home buyers clarity on the options they have and the processes involved throughout the buying property Perth process. Investing in property or buying a home can often come with miscommunication between home buyers and professionals. As such this website will only recommend professionals who have an active role in attributing to the site and are willing to work collectively to ensure that you receive maximum customer service and are met with a stress-free & hassle-free experience. |
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Assembling Your Team
When buying property in Perth your team should consist of: • A Mortgage Broker • A Settlement Agent/Property Lawyer • A Building Inspector • A Buyers Agent (Optional) A Perth property orientated accountant should also be employed if you are planning to invest in property within Perth. |
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The below explains how to build a team of professionals when buying property Perth, and the importance of synchronising that team of Perth property professionals. Assembling and syncronising your team of Perth property professionals, especially early in the buying property Perth process, can give you a substantial advantage over other Perth property buyers. The benefits of engaging the three main professionals within your buying property Perth team are listed below:
BUYING PROPERTY PERTH - MORTGAGE BROKER
When buying property Perth a good Mortgage Broker should provide you with the following benefits:-
• Convenience – Perth Mortgage Brokers are generally willing to tailor appointments to suit your needs, quite often after working hours or weekends, and will normally meet you in a place that suits you.
• Responsibility – Your Broker will match you to the correct loan product to meet your requirements. They will research and present the options to you, complete the paperwork, help you to apply for any Government grants or incentives that you may be eligible for, source pre-approval and consult with your Conveyancer/Settlement agent.
• Independence – Your Perth Mortgage Broker is not restricted to the loan products of any singular Bank or Lending Institution enabling them to shop around for the correct product for you. They also employ specialised software to prevent you from being rejected for a home loan which in turn will adversely affect your credit history.
• Free – Your Perth Mortgage Broker is normally paid commission by the Bank or Lending Institution when the loan is settled. They will normally receive both a one off payment and trailer fees which are ongoing provided you remain with the appointed Lending Institution. If you decide to move your account to another Lending Institution the Brokers trailer fees will stop. This is a great incentive for Mortgage Brokers to direct you to the correct loan product and lender from the start.
It is important to remember when buying property in Perth that Mortgage Brokers are not mind readers and will require as much information from you as possible to enable them to serve your needs successfully. A good Mortgage Broker will seek to secure you as a client for life. To achieve this outcome they will need to not only know your current situation but also your future developments and ambitions. Armed with this information they will be in a prime position to provide advice and guidance on the correct steps to take now so that your future lending requirements remain intact permitting you to readily achieve your medium and long term objectives.
When buying property Perth a good Mortgage Broker should provide you with the following benefits:-
• Convenience – Perth Mortgage Brokers are generally willing to tailor appointments to suit your needs, quite often after working hours or weekends, and will normally meet you in a place that suits you.
• Responsibility – Your Broker will match you to the correct loan product to meet your requirements. They will research and present the options to you, complete the paperwork, help you to apply for any Government grants or incentives that you may be eligible for, source pre-approval and consult with your Conveyancer/Settlement agent.
• Independence – Your Perth Mortgage Broker is not restricted to the loan products of any singular Bank or Lending Institution enabling them to shop around for the correct product for you. They also employ specialised software to prevent you from being rejected for a home loan which in turn will adversely affect your credit history.
• Free – Your Perth Mortgage Broker is normally paid commission by the Bank or Lending Institution when the loan is settled. They will normally receive both a one off payment and trailer fees which are ongoing provided you remain with the appointed Lending Institution. If you decide to move your account to another Lending Institution the Brokers trailer fees will stop. This is a great incentive for Mortgage Brokers to direct you to the correct loan product and lender from the start.
It is important to remember when buying property in Perth that Mortgage Brokers are not mind readers and will require as much information from you as possible to enable them to serve your needs successfully. A good Mortgage Broker will seek to secure you as a client for life. To achieve this outcome they will need to not only know your current situation but also your future developments and ambitions. Armed with this information they will be in a prime position to provide advice and guidance on the correct steps to take now so that your future lending requirements remain intact permitting you to readily achieve your medium and long term objectives.
BUYING PROPERTY PERTH - SETTLEMENT AGENT/CONVEYANCER
When buying property Perth a good Settlement Agent/Conveyancer should provide you with the following benefits:-
• Contract Review – Your Perth Settlement Agent will review your contract to ensure that you are aware of basic terms, conditions, legal requirements and time frames involved. It is critical that you do not submit an offer/sign anything you do not understand prior to consulting with them as this may affect your ability to ensure that any special conditions benefiting you are inserted in to the contract.
• Due Diligence – They will also search the title at Landgate, the WA Land Authority, to confirm the property details and identify any encumbrances registered over the land and monitor the dealing at Landgate to ensure that the transaction is correctly registered and transferred into the correct names.
• Exposure of illegal structures - Where possible they will make all necessary enquiries as to the legality of extension’s, pergola’s, shed’s, swimming pools etc. that have been added since the original structure was constructed and provide you with the relevant paperwork to confirm council approval. If council approval cannot be confirmed it is prudent to seek legal advice to diminish your inherited responsibility where possible.
Additionally they will;
• Make enquiries with the government authorities about rates, taxes and water consumption so that payment for that year is adjusted.
• Prepare and arrange all documentation for you to sign, including the transfer of land document.
• Arrange for duty to be paid on the contract of sale and transfer at the Office of State Revenue.
• Liaise with your Broker, Bank or Lending Institution to help them with the preparation of mortgage documentation.
• Attend settlement and hand over the relevant documentation and monies.
BUYING PROPERTY PERTH - BUILDING INSPECTOR
When buying property Perth a good Building Inspector should provide you with the following benefits:-
• Confidence – By conducting a thorough inspection of the Perth property you intend to purchase, providing you with comprehensive reports that are easily absorbed and following this up with a telephone consultation to ensure that you are fully informed on the current condition of the property and any concerns that you may harbour are addressed. You should also be made aware of any health and safety issues including – asbestos, mould, swimming pool barrier compliance, electrical concerns etc., and informed on their severity.
• Advice – A good Perth Building Inspector will advise you on the severity of defects and the necessary steps to take for further more detailed investigation and/or rectification. Ball park costs may also be conveyed where appropriate. They will also discuss maintenance issues and advise on when and how a building problem should be addressed to prevent it becoming major.
• Support – Your Perth Building Inspector should be able to offer you support throughout the property buying process, to settlement and beyond by liaising with not only you but other parties that require clarification with regard to the rectification of defects uncovered.
The Importance of Synchronising Your Team
The benefits gained by a Perth property buyer in selecting your team prior to making an offer on a property in Perth cannot be understated.
Real Estate Agents in Perth usually use an Offer & Acceptance contract provided by the Real Estate Institution of Western Australia (REIWA), the peak industry body representing the interest of Real Estate Agents in Perth and WA. By law, Perth agents must act in the best interests of the person who engaged them, so when selling a property they must work for the seller and no one else. There is no ‘cooling off’ period in Perth so by signing this offer and acceptance contract it will be legally binding once signed by the seller. If you do sign REIWA's recommended contract including a "structural inspection condition", you will only be able to withdraw from the sale if the property is found to have a major structural fault as defined by REIWA, and, only then if the seller refuses to rectify the fault.
If you have been prudent, assembled your Perth property team and informed each Perth property professional of the contact details of the others then you have placed yourself in an optimum position to enable you to negotiate a fair deal. Your mortgage broker and conveyancer/settlement agent can work together to ensure that there is enough time prior to settlement for all financial matters to be resolved thus avoiding the payment of any penalties that may be imposed.
Your conveyancer/settlement agent can also advise you on the inclusion of conditions within the contract to enable you to lawfully act upon the information in your building and timber reports.
Safety and Other Considerations
In the opinion of our team, you should expect to purchase a Perth property which is safe to live in. In addition to this the property should be presented in the same way as when you originally made your offer.
The following are considerations that you may wish to discuss with your team of professionals prior to the signing of an offer and acceptance contract;
A minimum of two RCD’s are not only present but have been tested by a qualified electrician to confirm their operational efficiency:
Currently around 15 Australians are killed in preventable home electrical accidents each year and an estimated 300 more are hospitalised with serious injuries.
Smoke alarms are installed and compliant:
Around five people are killed and many others seriously injured by house fires in WA annually.
Pool and spa barriers have been installed and maintained in accordance with all governing legislation:
Over the past five years 16 toddlers have drowned in Western Australia. For every drowning death it is estimated that ten children are admitted to hospital following a near-drowning incident.
The rectification of significant/major structural defects:
Items such as leaking roofs, sagging ceilings and burst pipes are not considered as structural defects within the terms of the standard REIWA structural inspection annexure.
Mould treatment and removal is carried out by a suitably qualified professional.
Electrical defects uncovered within the roof loft space are rectified and an electrical safety certificate is issued:
At Cap-it-All Building Inspections Perth we often find illegal electrical wiring and non-compliant down lights in the roof loft space. These dangerous defects may only be exposed by our inspections as nobody else is legally entitled to enter this area whilst a home is being sold. If not rectified fire may occur which will burn above the smoke alarms putting occupants at serious risk.
Chattels and fixtures:
Chattels are items in a property which can be moved and are regarded as not being part of the structure, such as curtains, blinds, rugs and mats. Fixtures are items which are a fixed part of the property, such as carpets, light fittings and built-in air conditioners.
When a property in Perth is sold, generally fixtures remain with the property while chattels are removed by the seller, unless otherwise stated in the contract. Since it might not be clear as to whether some items are fixtures or chattels, Perth buyers and sellers should list all items in the contract, even items like window fittings, garden sheds, dishwashers and wall-mounted tumble dryers.
For higher cost items such as dishwashers, which the buyer expects to remain in the property after settlement, it is helpful if the brand and model (or even serial number) are specified in the contract. All parties should ensure the contract is clear on what items will remain with the property and those which will be removed before settlement in order to prevent disputes or confusion.
Elimination of timber pests and rectification of any damage that may have been sustained:
At Cap-It-All Building Inspections Perth we are able to advise on the existence, the elimination and extent of rectification required where a home has been affected by presence of the three main timber pests – termites, borers and fungal rot/decay.
Outbuildings:
In the standard REIWA annexure for a structural inspection the seller is only obliged to rectify defects affecting the main residential dwelling and not defects affecting outbuildings. An old unstable wooden shed affected by fungal decay and termite ridden may not concern a buyer, however, a workshop or detached garage which has a roof in a state of dis-repair may.
Illegal Structures:
Where possible it is essential to confirm council approval of additions, outbuildings and swimming pools etc which were not constructed with the original building when buying property Perth. If these structures were not approved council will seek retrospective approval or may order demolition. Once the property has settled this may become your responsibility. Your settlement agent is likely to discuss title insurance with you, which can indemnify you from costs associated with illegal structures once you own the property.
Other considerations:
Having established what you would like to keep when buying property Perth you should also ensure that it is clear within your contract on the items that you would like removed such as items stored in sheds and general rubbish around the outside of the property. In Perth it is general practice for most contracts to include a clause stating all electrical, plumbing and gas items are to be in good, working order at the cost of the seller, so be sure to check your offer and acceptance for this.
While the majority of Perth Real Estate agents do the right thing and follow REIWA's guidelines, Perth property buyers should always remember that they represent the seller. It is the real estate agents job to attain the highest price for the property as well as the settlement conditions that the seller would prefer.
This is why it is best practice to assemble your team early in the buying property Perth process. Have your team work together to protect your interests empowering you with the correct advice and information to ensure a smooth hassle free transaction and an ultimately rewarding outcome.
Real Estate Agents in Perth usually use an Offer & Acceptance contract provided by the Real Estate Institution of Western Australia (REIWA), the peak industry body representing the interest of Real Estate Agents in Perth and WA. By law, Perth agents must act in the best interests of the person who engaged them, so when selling a property they must work for the seller and no one else. There is no ‘cooling off’ period in Perth so by signing this offer and acceptance contract it will be legally binding once signed by the seller. If you do sign REIWA's recommended contract including a "structural inspection condition", you will only be able to withdraw from the sale if the property is found to have a major structural fault as defined by REIWA, and, only then if the seller refuses to rectify the fault.
If you have been prudent, assembled your Perth property team and informed each Perth property professional of the contact details of the others then you have placed yourself in an optimum position to enable you to negotiate a fair deal. Your mortgage broker and conveyancer/settlement agent can work together to ensure that there is enough time prior to settlement for all financial matters to be resolved thus avoiding the payment of any penalties that may be imposed.
Your conveyancer/settlement agent can also advise you on the inclusion of conditions within the contract to enable you to lawfully act upon the information in your building and timber reports.
Safety and Other Considerations
In the opinion of our team, you should expect to purchase a Perth property which is safe to live in. In addition to this the property should be presented in the same way as when you originally made your offer.
The following are considerations that you may wish to discuss with your team of professionals prior to the signing of an offer and acceptance contract;
A minimum of two RCD’s are not only present but have been tested by a qualified electrician to confirm their operational efficiency:
Currently around 15 Australians are killed in preventable home electrical accidents each year and an estimated 300 more are hospitalised with serious injuries.
Smoke alarms are installed and compliant:
Around five people are killed and many others seriously injured by house fires in WA annually.
Pool and spa barriers have been installed and maintained in accordance with all governing legislation:
Over the past five years 16 toddlers have drowned in Western Australia. For every drowning death it is estimated that ten children are admitted to hospital following a near-drowning incident.
The rectification of significant/major structural defects:
Items such as leaking roofs, sagging ceilings and burst pipes are not considered as structural defects within the terms of the standard REIWA structural inspection annexure.
Mould treatment and removal is carried out by a suitably qualified professional.
Electrical defects uncovered within the roof loft space are rectified and an electrical safety certificate is issued:
At Cap-it-All Building Inspections Perth we often find illegal electrical wiring and non-compliant down lights in the roof loft space. These dangerous defects may only be exposed by our inspections as nobody else is legally entitled to enter this area whilst a home is being sold. If not rectified fire may occur which will burn above the smoke alarms putting occupants at serious risk.
Chattels and fixtures:
Chattels are items in a property which can be moved and are regarded as not being part of the structure, such as curtains, blinds, rugs and mats. Fixtures are items which are a fixed part of the property, such as carpets, light fittings and built-in air conditioners.
When a property in Perth is sold, generally fixtures remain with the property while chattels are removed by the seller, unless otherwise stated in the contract. Since it might not be clear as to whether some items are fixtures or chattels, Perth buyers and sellers should list all items in the contract, even items like window fittings, garden sheds, dishwashers and wall-mounted tumble dryers.
For higher cost items such as dishwashers, which the buyer expects to remain in the property after settlement, it is helpful if the brand and model (or even serial number) are specified in the contract. All parties should ensure the contract is clear on what items will remain with the property and those which will be removed before settlement in order to prevent disputes or confusion.
Elimination of timber pests and rectification of any damage that may have been sustained:
At Cap-It-All Building Inspections Perth we are able to advise on the existence, the elimination and extent of rectification required where a home has been affected by presence of the three main timber pests – termites, borers and fungal rot/decay.
Outbuildings:
In the standard REIWA annexure for a structural inspection the seller is only obliged to rectify defects affecting the main residential dwelling and not defects affecting outbuildings. An old unstable wooden shed affected by fungal decay and termite ridden may not concern a buyer, however, a workshop or detached garage which has a roof in a state of dis-repair may.
Illegal Structures:
Where possible it is essential to confirm council approval of additions, outbuildings and swimming pools etc which were not constructed with the original building when buying property Perth. If these structures were not approved council will seek retrospective approval or may order demolition. Once the property has settled this may become your responsibility. Your settlement agent is likely to discuss title insurance with you, which can indemnify you from costs associated with illegal structures once you own the property.
Other considerations:
Having established what you would like to keep when buying property Perth you should also ensure that it is clear within your contract on the items that you would like removed such as items stored in sheds and general rubbish around the outside of the property. In Perth it is general practice for most contracts to include a clause stating all electrical, plumbing and gas items are to be in good, working order at the cost of the seller, so be sure to check your offer and acceptance for this.
While the majority of Perth Real Estate agents do the right thing and follow REIWA's guidelines, Perth property buyers should always remember that they represent the seller. It is the real estate agents job to attain the highest price for the property as well as the settlement conditions that the seller would prefer.
This is why it is best practice to assemble your team early in the buying property Perth process. Have your team work together to protect your interests empowering you with the correct advice and information to ensure a smooth hassle free transaction and an ultimately rewarding outcome.