Brisbane Conveyancing, Building Pest Inspection, Finance Approval, Settlement

E

EstatePreneur

Hi newbie here (have been around since last year, but still consider myself a newbie :eek: )

Just getting ready before purchasing my PPOR.

What would usually happen after the seller/vendor signs the agreed contract/price?

From what I've ready so far, I'd have to organise these following things asap but still unsure:
1. Pay deposit (-+ $1000) to secure the contract on the day the contract is signed by the vendor?
2. Deposit for the total purchase price (5%) paid to the REA within 10 days?
3. Find a solicitor to do conveyancing work? From my understanding, I'd just need to send the contract to the solicitor and he/she will verify the contract and do the rest for me, and I pay the solicitor for his service (which is roughly $400??)
4. Find a pest/building inspector to do inspection on the property, and get inspection report from them.
5. And then get the finance ready from the bank, and get the solicitor to send the contract to the bank?

now, where would/should I go from here?


Btw, could anybody recommend a good pest/building inspector and good solicitor who charge good reasonable price here in Brissie?

Also, what's the fair price for pest & building inspection? As for solicitor fee, the bank told me should be around $400?
And what should be expected from these guys' services? Would it be just some papers with reports on it? Should I attend the property when they're doing the pest/building inspection?
 
Your contract should say when you have to do certain things by, usually expressed as x days (double check whether it's calendar days or working days) after exchange of contract (i.e. when you both sign it). The amount of the deposit is whatever is written on the contract.

My suggestion: keep a timetable with all the important dates on it. e.g. when you have to pay the deposit, when the finance and inspection clauses expire (if you have any, and remember the wording usually DEEMS the condition to be satisfied if you don't say anything to the contrary. So if you stay silent re the finance clause until it expires, it expires with deemed satisfaction).

Don't just trust that everyone is doing everything they should be. Prior to settlement, make sure you email / call everyone and double check that they know when the settlement is supposed to be. Don't assume your mortgage broker knows when your finance clause expires: keep chasing them if they don't reply with a mortgage approval, especially if you're waiting for a bank valuation. Same with the building / pest inspection. Better to send a few more emails and make a few more calls than find out you've missed something.

Two other things you haven't mentioned is getting an agent to manage the property (unless it's already tenanted, in which case you just have to sign a new agreement with the PM) and getting a depreciation report done. You can do the QS report after, but you might as well get it organised.
Alex
 
alexlee said:
Your contract should say when you have to do certain things by, usually expressed as x days (double check whether it's calendar days or working days) after exchange of contract (i.e. when you both sign it). The amount of the deposit is whatever is written on the contract.

My suggestion: keep a timetable with all the important dates on it. e.g. when you have to pay the deposit, when the finance and inspection clauses expire (if you have any, and remember the wording usually DEEMS the condition to be satisfied if you don't say anything to the contrary. So if you stay silent re the finance clause until it expires, it expires with deemed satisfaction).

Don't just trust that everyone is doing everything they should be. Prior to settlement, make sure you email / call everyone and double check that they know when the settlement is supposed to be. Don't assume your mortgage broker knows when your finance clause expires: keep chasing them if they don't reply with a mortgage approval, especially if you're waiting for a bank valuation. Same with the building / pest inspection. Better to send a few more emails and make a few more calls than find out you've missed something.

Two other things you haven't mentioned is getting an agent to manage the property (unless it's already tenanted, in which case you just have to sign a new agreement with the PM) and getting a depreciation report done. You can do the QS report after, but you might as well get it organised.
Alex
Click to expand...

Alex, thanks very much for being the first one to reply to my post.
By the way, if you read my other thread, I've finally got a deal with the seller/vendor :p

Here's the scenario, my settlement day is about 1,5 months away, and the property is currently occupied by a tenant. Here's what concern me.
Is there any use to get the pest/building inspection done before the tenant moves out? Considering that there's still 1,5 months time before I move in, and anybody could just break in the house and do some serious damage, even the tenant who still lives there might mess up the property?

I might have just asked a crappy question, but since it's my first time buying property :p please excuse me.
 
EstatePreneur said:
Here's the scenario, my settlement day is about 1,5 months away, and the property is currently occupied by a tenant. Here's what concern me.
Is there any use to get the pest/building inspection done before the tenant moves out? Considering that there's still 1,5 months time before I move in, and anybody could just break in the house and do some serious damage, even the tenant who still lives there might mess up the property?
Click to expand...

I'm assuming you have a pest / building inspection clause in your contract? i.e. if the inspection is not satisfactory you can pull out of the contract? In which case you HAVE to do the inspection (ok, you don't, but it gives you an out just in case you discover something horrible?)

The tenant is unlikely to manage to break the building or introduce pests in 6 weeks. If you're really concerned, when you do the building inspection with the inspector, go talk to the tenants and ask them if they need help with anything.

Sure the tenant can mess up the property, but that's what the bond is for. Check with the solicitor re what your rights are about getting the place in the same condition as when you signed the contract, esp re the rental bond (since the current owner is the lessor).

In general, I wouldn't worry too much about random acts of violence to the property. I mean, someone can still break into the place and burn it to the ground AFTER you move in, too. In fact break-ins would be LESS likely if there is someone living there (i.e. the current tnenat). Just make sure you get insurance.
Alex
 
G'day EP,

Building Inspector:-
One I've used several times (and is the first I call) is
Ben Poulsen, Building & Pest Inspector, 0411 035346 - be on site with him, and you will learn A LOT about this property of yours (potentially).

Re Solicitors, hmm, well, I've gone thru a few - none that stick in my mind - so, sorry.

Regards,
 
some options for you!!!

Hi,

a few options for you...all folks that our clients have used and are happy with...and have also impressed me as an agent dealing with them.

Twinspectors - 1300 304 145 (they have a termite dog!! and thermal imaging equipment - very professional)

Able Building Inspections - Colin Whincop - 0414831168 or 33005933

Metropolitan Property Inspections - Cass Simeone - 0403254416 or 32455709

Building Inspection and construction Specialists - David Handy - 0400541704 or 33541715


re solicitor/conveyancer, give Richard Pratt from Conveyancing Queensland a call, very nice fellow and really knows his realestate stuff!!! 0401 666 745 3221 5416. They are a fixed price company too. CQ are a division of Laing Hemming and Hall solicitors.

no i don't get kick backs from any of them and even if i did, none of them would know who i am from this forum moniker anyway. :D

Cheers
UC
 
alexlee said:
I'm assuming you have a pest / building inspection clause in your contract? i.e. if the inspection is not satisfactory you can pull out of the contract? In which case you HAVE to do the inspection (ok, you don't, but it gives you an out just in case you discover something horrible?)

The tenant is unlikely to manage to break the building or introduce pests in 6 weeks. If you're really concerned, when you do the building inspection with the inspector, go talk to the tenants and ask them if they need help with anything.

Sure the tenant can mess up the property, but that's what the bond is for. Check with the solicitor re what your rights are about getting the place in the same condition as when you signed the contract, esp re the rental bond (since the current owner is the lessor).

In general, I wouldn't worry too much about random acts of violence to the property. I mean, someone can still break into the place and burn it to the ground AFTER you move in, too. In fact break-ins would be LESS likely if there is someone living there (i.e. the current tnenat). Just make sure you get insurance.
Alex
Click to expand...

Hi Alex, yes, I put the subject to pest/building inspection clause on the contract, after getting your advice in my other thread, I thought it was too risky not putting that clause on the contract, although it could make my offer more attractive to the vendor. But in the end, my top offer was what made the vendor made the 'sell' call.

jingo said:
Hi EstatePreneur,

I'd arrange insurance as soon as you sign the contract. You would need a cover that includes Building and contents insurance.

Regards Jason.
Click to expand...

Ok, I got 2 people suggesting insurance. Then I'll talk to the bank (NAB) about it.
 
Les said:
G'day EP,

Building Inspector:-
One I've used several times (and is the first I call) is
Ben Poulsen, Building & Pest Inspector, 0411 035346 - be on site with him, and you will learn A LOT about this property of yours (potentially).

Re Solicitors, hmm, well, I've gone thru a few - none that stick in my mind - so, sorry.

Regards,
Click to expand...

Thanks Les, I'll give him a call and will attend the property while inspection is being done later. I'd love to learn as much as I could, especially for future benefit when buying IPs :D
 
urban cowboy said:
Hi,

a few options for you...all folks that our clients have used and are happy with...and have also impressed me as an agent dealing with them.

Twinspectors - 1300 304 145 (they have a termite dog!! and thermal imaging equipment - very professional)

Able Building Inspections - Colin Whincop - 0414831168 or 33005933

Metropolitan Property Inspections - Cass Simeone - 0403254416 or 32455709

Building Inspection and construction Specialists - David Handy - 0400541704 or 33541715


re solicitor/conveyancer, give Richard Pratt from Conveyancing Queensland a call, very nice fellow and really knows his realestate stuff!!! 0401 666 745 3221 5416. They are a fixed price company too. CQ are a division of Laing Hemming and Hall solicitors.

no i don't get kick backs from any of them and even if i did, none of them would know who i am from this forum moniker anyway. :D

Cheers
UC
Click to expand...

UC, wow thanks for helping me with a few options.
I was wondering is it better to deal with solicitor or a conveyancer?
Also what sort of price I'll be paying the solicitor/conveyancer and for the pest/building inspection?
 
generally i'd recommend a solicitor every time - a bit of a get what you pay for experience. However i have come across Richard and found him to be a most competent fellow and very generous in his dealings. The fee will be cheaper than most solicitors. The main point there is that whilst they are a conveyancing firm - they are a division of one of the more reputable law firms in Brisbane and hence are more than just a local conveyancer IMHO of course!!!!!

re fees, it will vary by enormous amounts depending on what/where/who etc but from memory CQ charge about $660 inc GST for the professional fee for a standard transaction then you have the govt searches on top of that...

re building/pest shouldn't be more than a few hundred dollars for an average sized property. The only costings in this regard that i have handy are $121 for the pest component and $250/$265/$285 for the building component of the inspection dependent on the property size.

from memory that is fairly standard, but some inspectors charge a bit more for added features such as photos, "war and peace" thickness reports and other bits and pieces.

most of the guys i mentioned will be around those figures.

hope this helps
cheers
UC:D
 
EstatePreneur

If the house is in Queensland, it is at your risk from the date of the contract - so if it burns down and you aren't insured .... you're up the proverbial creek!

Would suggest that you arrange insurance as a matter of urgency.

Cheers
LynnH
 
urban cowboy said:
generally i'd recommend a solicitor every time - a bit of a get what you pay for experience. However i have come across Richard and found him to be a most competent fellow and very generous in his dealings. The fee will be cheaper than most solicitors. The main point there is that whilst they are a conveyancing firm - they are a division of one of the more reputable law firms in Brisbane and hence are more than just a local conveyancer IMHO of course!!!!!

re fees, it will vary by enormous amounts depending on what/where/who etc but from memory CQ charge about $660 inc GST for the professional fee for a standard transaction then you have the govt searches on top of that...

re building/pest shouldn't be more than a few hundred dollars for an average sized property. The only costings in this regard that i have handy are $121 for the pest component and $250/$265/$285 for the building component of the inspection dependent on the property size.

from memory that is fairly standard, but some inspectors charge a bit more for added features such as photos, "war and peace" thickness reports and other bits and pieces.

most of the guys i mentioned will be around those figures.

hope this helps
cheers
UC:D
Click to expand...
UC, just rang Richard Pratt from CQ, they quoted me exactly the amount you said $660 inc. gst. But it was a lady called Melissa who spoke to me. I had a quick nice chat with her over the phone, except the receptionist sounded pretty falling asleep hehe :D

I'm gonna call those pest/building inspectors now.
Just wondering what's the best time to do pest/building inspection while the property is still occupied by a tenant? Should I talk to the REA first before making appointment with pest/building inspector?
 
LynnH said:
EstatePreneur

If the house is in Queensland, it is at your risk from the date of the contract - so if it burns down and you aren't insured .... you're up the proverbial creek!

Would suggest that you arrange insurance as a matter of urgency.

Cheers
LynnH
Click to expand...

LynnH, thanks for reminding that again. I'm going to talk to the bank regarding insurance. I remembered the REA said they give 30 days insurance for free as part of their service. The REA works for RayWhite.
I'd better clarify with the REA if the insurance covers building and contents while I shop around for home insurance.
 
EstatePreneur said:
UC, just rang Richard Pratt from CQ, they quoted me exactly the amount you said $660 inc. gst. But it was a lady called Melissa who spoke to me. I had a quick nice chat with her over the phone, except the receptionist sounded pretty falling asleep hehe :D

I'm gonna call those pest/building inspectors now.
Just wondering what's the best time to do pest/building inspection while the property is still occupied by a tenant? Should I talk to the REA first before making appointment with pest/building inspector?
Click to expand...

I don't think it really matters when you have it done...its probably easier for the inspectors to do it when there is no-one there, they have better access to skirting boards etc and generally get a better feel for the construction and any issues without furniture clouding the picture so to speak...as long as you get it organised within your time frames as per the contract.

Let me know how you go with Richard:), i'm always interested to see how my recommendations go - after putting my head on the chopping block:rolleyes:.

cheers
UC
 
I went to speak with the lady from the bank, and she said the bank will provide insurance on the property from the day the contract is signed by the vendor up to the settlement day.

I was concerned about when moving in on the settlement day, the property could be in a mess (i.e. caused by the current tenant's action).

I've organised pest/building inspection for this friday, but the settlement day is still 1,5 months away. In terms of legals, I was wondering if there's anything I can do if I'm not satisfied with the condition of the property when the tenant left and I'm about to move in.

There are still a lot of furnitures in the house, and 2 big dogs at the backyard. I'm just afraid I'm left in the dark if the above scenario happens.

Second question, is there something I should be doing now? i.e. postpone the pest/building inspection day until as close as to the settlement day, although I'm aware that on the contract I've only been given 10 days from the contract signing day.

Is there something my solicitor/conveyancer can do to ensure that the property is in good satisfied condition until I settle in? And if something goes wrong with the property before I settle in, I can take legal action against the vendor/REA/the tenant? i.e. ask them to pay for bills to clean up all the mess and bring the property to its original condition.
 
EstatePreneur said:
Second question, is there something I should be doing now? i.e. postpone the pest/building inspection day until as close as to the settlement day, although I'm aware that on the contract I've only been given 10 days from the contract signing day.
Click to expand...
Don't postpone this... Once the 10 days are up it is automatically assumed you have accepted the report unless you contact your solicitor. After 10 days, the report will not be valid.

Is there something my solicitor/conveyancer can do to ensure that the property is in good satisfied condition until I settle in? And if something goes wrong with the property before I settle in, I can take legal action against the vendor/REA/the tenant? i.e. ask them to pay for bills to clean up all the mess and bring the property to its original condition.
Click to expand...
Have a read of this post
http://www.somersoft.com/forums/showthread.php?t=33981
The condition it is in now (ie, when it is purchased) should be the condition it is handed over to in. Maybe when you are at the building & pest inspection, you can take some photos?
Good luck with it all
Steve
 
EstatePreneur said:
Second question, is there something I should be doing now? i.e. postpone the pest/building inspection day until as close as to the settlement day, although I'm aware that on the contract I've only been given 10 days from the contract signing day.
Click to expand...

The whole point of that clause is for you to do inspections and be able to pull out of the contract if you find anything horrible. But you can only do that WITHIN the 10 days. If you don't do the inspection by then, the clause is deemed to be satisfied even if you subsequently do an inspection and find a huge crack in the wall or something.

EstatePreneur said:
Is there something my solicitor/conveyancer can do to ensure that the property is in good satisfied condition until I settle in? And if something goes wrong with the property before I settle in, I can take legal action against the vendor/REA/the tenant? i.e. ask them to pay for bills to clean up all the mess and bring the property to its original condition.
Click to expand...

Photos would definitely help. Check your contract to see if you can access the tenant's bond if there is damage. Usually, though, you can expect people to be just ordinary people: they don't destroy properties for fun.
Alex
 
you also get a pre-settlement inspection that you should do as close to settlement as possible - should allow enough time for the tenants to get out and place to be cleaned etc.

if on the final (pre-settlement) inspection the property is not at the standard of what you purchased, then hold up the settlement until it is fixed... check the legal advice there but it does happen fairly regularly.

with regards to condition, get photos where you can and use them as comparison shots during your pre-settlement inspection...there should also be the entry condition report and quarterly inspection reports done by the vendors property manager prior to and during the tenancy - these should give a running commentary of the condition of the property. The property should be returned to the condition that it was at the commencement of that tenancy - SO should there be issues with the condition of the property, you MAY be able to delay the settlement and request the vendor fix the problem...the vendor should be able to recoup the costs from the tenants bond etc etc, but that's his/her problem...


in short, you have a couple of options to have the property sorted prior to formal handover (settlement)... if you need more specifics than above, PM me and i'll give you my number and we'll try to give you some better indication of where you stand...will all be opinions though - best advice comes from your solicitor/conveyancer.

cheers
UC
 
alexlee said:
The whole point of that clause is for you to do inspections and be able to pull out of the contract if you find anything horrible. But you can only do that WITHIN the 10 days. If you don't do the inspection by then, the clause is deemed to be satisfied even if you subsequently do an inspection and find a huge crack in the wall or something.



Photos would definitely help. Check your contract to see if you can access the tenant's bond if there is damage. Usually, though, you can expect people to be just ordinary people: they don't destroy properties for fun.
Alex
Click to expand...

Alrightio, I'll proceed with pest/building inspection this friday.

Hmm, just got a call from the REA, the tenant doesn't agree about taking pictures of the whole property.

No worries UrbanCowboy, I've spoken to the REA and my solicitor, they said that I have the right to lodge a complain to the vendor if the building condition is not up to the standard/the original condition, and postpone settlement day until the vendor fix all the damage if there is any.

Thanks for that post, yo yo ma, I've read that yesterday, and that's why I became concerned about this matter.
 
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