{"id":3399,"date":"2015-02-13T01:00:31","date_gmt":"2015-02-12T14:00:31","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=3399"},"modified":"2015-02-13T01:00:31","modified_gmt":"2015-02-12T14:00:31","slug":"some-legal-advice-for-first-time-home-buyers","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/some-legal-advice-for-first-time-home-buyers\/","title":{"rendered":"Some legal advice for first time home buyers"},"content":{"rendered":"

 
\nIn today’s show, legal eagle\u00a0Rob Balanda<\/a>\u00a0has some good advice for first time buyers.<\/p>\n

Transcript<\/h4>\n

Kevin<\/b>:\u00a0 \u00a0I received some very good advice recently from a good friend of mine, a man who I always take notice of, and that is Rob Balanda from MBI Lawyers.
\nGood day, Rob.
\nRob<\/b>: \u00a0Good day there, Kevin.
\nKevin<\/b>: \u00a0Would you like to know what that piece of advice was?
\nRob<\/b>: \u00a0What was that? Always borrow money from a pessimist because they never expect to get it back? Was that it?
\nKevin<\/b>: \u00a0Something like that. It was to do with buying property, of course. It was about first-home buyers and how, when you are going through the process, it\u2019s quite daunting, but it can become a lot easier if you put a team together.
\nLet\u2019s talk about that, Rob. Who would you see on the team, and what would be their function?
\nRob<\/b>: \u00a0You need people who will hold your hand as a beginner. The process is one you\u2019ve never encountered before, so you need to engage with people who personally commit to helping you through it. This starts with the real estate agent. Everyone has to have more patience than most. Once you\u2019ve done this once, then you\u2019re well on your way, and then next time, you won\u2019t have to.
\nThe agents start with sending a draft of the contract to your solicitor or your conveyancer. The solicitor will make sure that it\u2019s got the usual protections for you and then very importantly, it\u2019s got pest and building clauses in it that genuinely allow you \u2013 as the buyer or the first-home owner \u2013 to pull out if you\u2019re not happy with the pest and building.
\nKevin<\/b>: \u00a0Finance is a big thing, too?
\nRob<\/b>: \u00a0Yes. Make sure you get pre-approval of finance so you can be asking the seller for the minimum time possible for approval of finance. The shorter the better. The next big thing is the deposit. Make sure that you only pay a token deposit. I suggest $1000 or $2000 initially until you go unconditional. You just don\u2019t want sellers holding some of your money until you\u2019re actually genuinely unconditional. Have a clause that says the balance up to 5% or whatever it might be is payable within, say, two working days of signing off on finance.
\nKevin<\/b>: \u00a0You said 5% there, but sometimes agents will ask you for 10%?
\nRob<\/b>: \u00a0Yes. The ideal is to get 10% from a buyer as an agent, but often first-home owners won\u2019t have that much. They\u2019ll be on a real budget.
\nKevin<\/b>: \u00a0Normally the agents take their commission when the property settles out of that deposit, so they would want to make sure that they\u2019ve got between 2% and 3%, because that\u2019s basically what the commissions are around Australia?
\nRob<\/b>: \u00a0Yes, that\u2019s right. People forget that the deposit is also a security for the agent\u2019s commission, so without being undiplomatic about it, they\u2019ll usually round it off to the nearest thousand.
\nKevin<\/b>: \u00a0Once we\u2019ve done that and we\u2019ve gone through this building and pest and finance, then normally about 14 days. Is that about right?
\nRob<\/b>: \u00a0Yes, 14 days if you\u2019ve got pre-approval for finance. Make sure that you don\u2019t sign off on finance until you get something more than that congratulations letter that often come out of lenders or brokers \u2013 the three-liner that says \u201cCongratulations, the loan is approved.\u201d A loan approval has many pages of conditions, and you need to make sure that you have that full letter before you sign off.
\nKevin<\/b>: \u00a0Once you go through those conditions, then the settlement takes place. Is it normally about 30 days?
\nRob<\/b>: \u00a0You need to allow a minimum of 30 days as a first-timer. I like to put in 35. Sellers don\u2019t usually balk at that, especially if the settlement is going fall over the Christmas\/New Year period when you\u2019ll lose a few working days because of holidays.
\nKevin<\/b>: \u00a0When that day for settlement comes around, what does the buyer have to do? I know the answer to this, but I think it doesn\u2019t hurt for first-time buyers to find out what happens at settlement.
\nRob<\/b>: \u00a0The solicitors handle the settlement. You just need to make sure that you\u2019ve been in to see your friendly solicitor and they have all the documents and all the papers and all the monies needed to effect settlement in the coming days. You make sure that there is nothing more they want from you and that all you\u2019re waiting for then, is that phone call to say, \u201cCongratulations, the property is now yours.\u201d
\nKevin<\/b>: \u00a0Now, what if I, as a buyer, want to go in and have another inspection on the property just before it settles to make sure that nothing has been missing that I thought was going to be in there. Is that in order?
\nRob<\/b>: \u00a0That\u2019s usually in the standard contracts, and it\u2019s a good idea to ask for that as a first-timer, say about a week out. Then if you got a seller who\u2019s thinking about doing the old switcheroo \u2013 swapping the chintz curtains or those crystal chandeliers for some cheap substitute \u2013 that will put them on notice that you\u2019re coming through, and they\u2019ll have second thoughts about doing that thing. It does keep everyone honest. I like the idea.
\nKevin<\/b>: \u00a0Then I as the buyer can\u2019t get the keys, I can\u2019t take possession, until there\u2019s been formal notice from both sides that the property has actually settled?
\nRob<\/b>: \u00a0Yes, that\u2019s how it works.
\nKevin<\/b>: \u00a0I\u2019d be given the keys, and then, of course, it\u2019s all mine and I can move in?
\nRob<\/b>: \u00a0Yes.
\nKevin<\/b>: \u00a0What about if I want move some furniture in before the settlement?
\nRob<\/b>: \u00a0Usually sellers will indulge you there, but the thing to understand there is that when you put furniture in, it\u2019s at your risk. Make sure that garage is locked up, because if someone breaks in, if the seller has moved out, then the risk is yours. If it\u2019s stolen, that\u2019s your worry, not the seller\u2019s.
\nDitto with pool equipment. If you are buying a house with a pool and the seller has moved out a couple of days before settlement, make sure the agent has got the Kreepy Krauly and the Barracuda in the garage locked away, because what happens is it goes missing. That\u2019s what I find.
\nKevin<\/b>: \u00a0Rob, it\u2019s great talking to you. Thank you very much for your time. Some great tips and pieces of advice there. Rob Balanda is from MBI Lawyers, and we would suggest you give him a call.
\nThanks for your time, mate.
\nRob<\/b>: \u00a0Good day to you, Kevin.
\n <\/p>\n","protected":false},"excerpt":{"rendered":"

  In today’s show, legal eagle\u00a0Rob Balanda\u00a0has some good advice for first time buyers. Transcript Kevin:\u00a0 \u00a0I received some very good advice recently from a good friend of mine, a man who I always take notice of, and that is Rob Balanda from MBI Lawyers….<\/p>\n","protected":false},"author":176692471,"featured_media":1167,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,25],"tags":[101],"class_list":["post-3399","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-sponsored-channels","tag-podcast"],"yoast_head":"\nSome legal advice for first time home buyers - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/some-legal-advice-for-first-time-home-buyers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Some legal advice for first time home buyers - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"  In today’s show, legal eagle\u00a0Rob Balanda\u00a0has some good advice for first time buyers. 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