So, you have managed to successfully secure the property you like, and you have your finances approved with your mortgage broker. What a great start! The vendor(s) has accepted your offer, or maybe you won the auction. Now comes the time to fill out the contract details. You read the first question.
Who is your legal representative?
More often than not, buyers are not prepared when it comes to having adequate legal representation for their purchase. Sure, you can represent yourself and arrange everything necessary to meet settlement but let us not kid ourselves not even a mortgage broker would do their own legal settlement representation for a purchase.
Are you comfortable liaising with the vendor’s lawyers that know every nook and cranny of the law regarding their client vendors’ rights? Do you know how to lodge a request under Section 27 of the Sale of Land Act 1962 (the “Act”)?, or review documents provided pursuant to Section 32 of the Act? Therefore, having yourself aligned with a lawyer prior to engaging the seller for your proposed purchase is a crucial step. The degree of importance in making sure that you are backed by an expert will ensure your purchase will go smoothly without hiccups – well… that means you can sleep better at night!! Normally if you do not have a conveyancer or a lawyer, the agent selling the property can probably assign someone to you. But let’s be honest, do they have your best interests in mind?
As a finance firm, Borg Financial has worked with many first home buyers and investors. We have seen an increase in clients that have not engaged a conveyancer or property lawyer prior to their purchase. Based on our experience with law firms, which assist their clients with property purchases and achieving their commercial goals, we simply cannot stress enough the importance of adequate legal representation. The sheer risk and cost involved in missing a finance clause, not meeting settlement, or even defaulting on your loan contract can have severe consequences. If you want to avoid issues like these, aligning yourself with a law firm prior to engaging a seller to buy a property is crucial.
Here we have Madison Branson Lawyers, a law firm that covers all bases for their clients, from SME, Property, Commercial to Corporate Law proving to be an all-rounder when it comes to assisting clients. Borg Financial has strategically developed a symbiotic relationship with Madison Branson Lawyers to assist clients, and vice versa, for finance and legal needs. The synergistic working relationship has propelled productivity and proven to be an asset to clients needing a one-stop shop for their property and commercial goals. Conventionally, both brokers and property lawyers have shared a mutual client relationship to assist with settlement to proceed timely and smoothly.
The conveyancing arm of Madison Branson Lawyers aims to develop their working relationship with the purchaser at the pre-purchase stage, this involves advising the risks involved with the proposed purchase or property and/or acquiring any assets. Whether it is drafting a power of attorney, Wills and Estate Planning, negotiating on Binding Financial Agreements, Madison Branson Lawyers is here to assist.
Are you considering selling your home and having contracts drawn up? Or do you want to appoint a law firm as a representative on your behalf for other matters? These are requirements from clientele that Madison Branson Lawyers fulfil on a day-to-day basis. If you are planning on building a property and have questions about the construction site, there is more than just conveyancing. It involves reviewing two separate contracts: the land contract and HIA building contract.
This is time-sensitive, and the settlement period is usually fixed by the developer or private vendor.
Having a strong relationship with Madison Branson Lawyers has proven successful in growing our client’s portfolios and covering off and highlighting risks. Not only can we communicate in a timely manner, but it has enabled us to increase the quality of care for each other’s mutual clientele. In turn, we can keep clients informed and maintain a strong transparency of work ethic and positive moral.
Madison Branson Lawyers’ vision is to assist clients long term and further refer back for finance requirements to Borg Financial to provide professional credit advice where needed, of course, in the best interest of the clients. Property being a big part of the reason for obtaining loans and needing legal representation we have provided a step by step guide into the fundamentals of liaising with both legal and finance.
Looking to purchase a property? Here is a step-by-step process:
Step 1. Engage Borg Financial to assist with your credit requirements, which is tailormade to your personal circumstance.
Step 2. Borg Financial will then organize a Pre-Approval so that you have approval subject to the purchase contract and valuation.
Step 3. Introduction to Madison Branson Lawyers conveyancing team, they will go over the settlement process and any other additional services with you, which includes negotiating a subject to finance clause in the contract.
Step 4. Start looking at property to purchase. Private sale, auction, off the plan, house, and land packages for construction.
Step 5. Once you have decided on the property, you will be required to send your contract to be reviewed by Madison Branson Lawyers.
Step 6. Madison Branson Lawyers will review Section 32 and the contract signed by all parties and have it forward to Borg Financial to formalize the finance.
Step 7. If there is a subject to finance approval clause in the contract, we will usually have 14 days to obtain a formal approval, prior to the 10% deposit due date. Please remember if you buy at auction, you are purchasing unconditionally without subject a subject to a finance clause, and the 10% deposit is required straight away.
Step 8. If there is a delay with obtaining the approval due to banking delays or valuation delays, Borg Financial will work together with Madison Branson Lawyers to apply for an extension on the approval due date. This will buy us more time to get the finance over the line. If the finance is declined, we can still exit the contract and get your deposit back but remember, only if there is a subject to finance clause!
Step 9. Once formal approval has been obtained, Borg Financial will send an Unconditional approval letter to you and Madison Branson Lawyers so that the deposit can be paid and we have satisfied the finance clause.
Step 10. Loan documents will be sent to you by the lenders directly, Borg Financial is here to assist with signing the loan document. Once completed they are sent back to the bank and the settlement is to be booked.
Step 11. Once the banks are ready to book settlement, Madison Branson Lawyers will be invited into a mutual platform called PEXA to initiate the settlement. A time will be set and the settlement will occur.
On the day of settlement, depending on the loan amount applied for there could be an additional amount of funds to contribute from the client. These funds can be sent to Madison Branson Lawyer’s trust account. The lawyer will then have control over the funds making the settlement more likely to succeed. Alternatively, you can also have the funds available in a bank account that has been set up with the lender the loan will be placed, in a shortfall account.
Once settlement has occurred, you will arrange a time with the agent to pick up the keys. Madison Branson Lawyers will send through a statement of adjustments that shows any fees that occurred from the time of signing your contract to the time you settle, some of these fees can include, rates, utilities, water, and outstanding bills on the property. All in all, having a transparent one-stop shop for your Property, Legal and Finance needs, Madison Branson Lawyers and Borg Financial have you covered and are able to assist you every step of the way.
FAQ
Do I require to pay for legal services up front?
A: Depending on the level of involvement on the purchase or contract a deposit can be charged upfront however normally the conveyancing costs for a purchase come at settlement time.
What other services do you offer?
A: Borg Financial offers an array of finance services with in-house financial planners, professional credit advisors and services that can even review your insurances. We have affiliations with buyers agents, accountants, builders and many more services that can assist with your needs.
Madison Branson Lawyers offers a full legal suite of services, including representation in Commercial Law, EDR, SME, Property Conveyancing, Building & Constructions, Contract Law and even Proceeds of Crime Law.
What happens if I have signed a contract and have not engaged a Conveyancer yet?
A: Don’t sweat it, Borg Financial is able to organize a property lawyer to update the agent and vendor even after you signed the contract, however, it is easier to have a conversation with Madison Branson Lawyers and then relaying to the vendors of your legal representation.
Do I need my Section 32 reviewed when I have purchased a property?
A: Borg Financial always recommends that you speak to a property lawyer from Madison Branson Lawyer to make sure they have reviewed the contract before you sign the contract.