If you are buying or renting a house in Australia, then it goes without saying that you must be thrilled and excited at the prospect of moving to a new place. But at the same time, you will also be stressed because the intricacies involved often make real estate dealings quite a challenging task.
Regardless of whether you are the buyer or the seller, if you want to avoid facing any trouble down the road, then it is important to know the legal aspects of buying or renting houses before you close a deal.
Here are the legalities involved in buying and renting real estate that both the parties must be aware of.
Legal Aspects of Real Estate Dealings
The legal factors that come along with property trading can be divided into two categories.
1. Buyer’s Protection
As is evident by the name, buyer’s protection means certain legal obligations that must be fulfilled in order to safeguard the rights of the new property owner or the buyer. This encompasses the costs as well as the documentation required for title verification, registration, a legal inspection of the property and drawing up an arrangement for the payment schedule.
2. Property Expenditure
This includes various cost and expenses related to buying or renting the property that is incurred by one or both parties. These areas are discussed below.
Purchase tax is the largest extra cost that is added to the selling price and has to be paid by the buyer. The amount of purchase tax for a particular property differs from place to place and depends on the type of property under consideration.
Real Estate Agent’s Commission
This is the extra expense incurred as the fees paid to the real estate agent or broker who helped the two parties secure a deal. Based on the initial agreement, this cost is born by the buyer, the seller or shared between them both. However, you must note that there are numerous ways that you can sell a property without any outside help.
Seller’s Legal Fee
This cost in incurred under certain circumstances, for instance, if the property in question is currently under construction and the buyer is asked to pay the legal fees. However, this happens rarely and only in very special situations.
These are the ongoing costs that are normally incurred once the property comes under the possession of the new owner. These might include security taxes, monthly municipal taxes, household repairs and so on.
Besides the factors, these might be additional costs and expenses such as home insurance and the likes. Make sure that you are well aware of all the legalities involved in buying and renting a house before you make the final call.