DEAN CARVER - Property Lawyer

Helpful Tips when you do a Final Inspection before settlement

2011-08-17T11:23:00.000+10:00

Just before settlement, you should arrange with the Agent to do a final inspection of the property to make sure that the property is as you inspected and no inclusions have been changed or removed. I have found over many years that the final inspection is an important and integral part of the process......it can often postpone settlement until issues are rectified.

Buyers should aim to do the final inspection as close as possible to the settlement date or early on the settlement day if possible.

Here are a few things buyers should consider when they do the final inspection:

Make sure that items listed as "inclusions" on the Contract are in fact still part of the property. For example: pool equipment, dishwasher, blinds, TV Antennae, light fittings, curtains etc. Check your Contract.
Make sure there are no items left behind. Check cupboards, built in wardrobes, roof void, under the house, sheds etc.
Make sure you get into the garage. Often, some Agents say they have forgotten the key to the garage only to find after settlement that there is a bed mattress or rubbish left in there. After settlement it is too late to get this removed by the Vendor.
Make sure the Agent has all the keys. Keys to the garages, sheds, window locks, front door, back door, letterbox etc.
Make sure all remotes have been left behind - For example, Air-conditioner remotes, garage doors, heaters, automatic blinds, TVs etc
Make sure all rubbish has been removed. Don't forget to look in the roof cavity (through the manhole) and under the house.
If the electricity is not on - just check the main box. The Vendor may have switched the power off at the main.

These are just a few general ideas and suggestions that you may wish to consider when you do a final inspection before settlement.

Comments by Dean Carver

Real Estate Lawyer - Carver Lawyers

Phone: (02) 9773 4550

NOTE: Would you like to know what houses in your area have been sold for?......order your FREE copy of the Postcode Sales Report (normally valued at $99.00).

Buying or Selling real estate at Auction - VIDEO

2011-07-27T11:19:00.000+10:00

Here is a short video prepared and distributed by the NSW Office of Fair Trading. It provides some helpful advice on the rights and responsibilities of bidders and auctioneers before, during and after the Auction.

If you are buying or selling real estate at Auction and need legal advice or assistance bidding at the Auction, I can be contacted below.

Comments by Dean Carver - Property Lawyer
Carver Lawyers
Phone: (02) 9773 4550

3 things you should do before you sell a home

2011-07-26T12:24:00.000+10:00

Before you decide to list and sell your home, make sure you do the following:

Get a copy of the NSW Fair Trading's Fact Sheet on Agency Agreements. This guide will provide information on engaging an Agent and the different types of Agency Agreements that exist in the marketplace. It also provides useful information regarding how to start and end an Agents appointment as well as what fees and commissions you are liable for. To get a copy of the fact sheet, you can click here
Make sure the Agent is licensed to sell your home. Check out the Fair Trading website "Licence check" facility. Click here to go to the relevant section of the NSW Fair Trading website
Do your research. Attend a few auctions in your area to find out the true success of an auction program for your relevant area. Also obtain a Sales History Report which sets out all the recent sales in your area. This will give you a good idea of what price range your property is worth in today's market.

If you are not sure of the process, you should contact your Solicitor to guide you through the sale.

Comments by Dean Carver

Property Lawyer - for Carver Lawyers (Sydney)

Phone: (02) 9773 4550

Home Sellers Tip - Present the home in its best light.....

2011-07-25T13:59:00.001+10:00

If you want to sell your home- present the home in its best light. Just like selling a car, you need to clean the car and make it appeal to buyers.

You don't want to give the buyers the opportunity to find fault and use those faults to negotiate the sale price of the property down.

Here are a few low cost repairs and ideas to help you present the home well:

Mow the lawns
Clean all the windows
Clean the bathroom and toilet thoroughly
Make sure all appliances work well
Make sure all lights work. Change globes if necessary
Clean floors
Remove clutter
Tidy yard. Remove rubbish. Go to the Tip if necessary
Fix leaking taps and toilets
Fix squeaking doors
Clean gutters
Fix garage door if necessary
Do lawn edges
Replace missing or cracked tiles
Clean driveway and footpaths....water blast with pressure cleaner
A fresh coat of paint always helps
Clean curtains and/or blinds
Remove cobwebs
Make sure gates and gate locks work
Clean pool
Make sure letterbox is straight and not falling down

Implement some of the above ideas and you are on your way to achieving a great price for your home!

Comments by Dean Carver

Property Lawyer & Strategist - "providing Solutions for Home Sellers"

Phone (02) 9773 4550

Sellers - 5 Tips in 5 days

2011-07-25T10:30:00.000+10:00

Selling your house, unit or investment property can be a stressful time if you don't have all the facts and know the tips, tricks and pitfalls of the real estate industry.

Over the next 5 days, I will post 5 tips for sellers that can achieve results in today's market. These tips are from my upcoming book soon to be released to clients and readers.

Stay tuned........if you need more information, you can email me or contact the office.

Regards
Dean Carver
Property Lawyer
Publisher - www.deancarver.com.au

Buying or selling real estate - read a few books first

2011-06-10T15:48:00.000+10:00

Buying or selling real estate in today's market can be a daunting and stressful time in any persons life. During the process you will be making important decisions that could potentially increase your wealth or substantially reduce your wealth by thousands.

When you go out into the world of real estate, you deal with professionals in all areas: Real Estate Agents, Lawyers, Valuers, Tradesman, Mortgage Brokers etc. These professionals practice their trade daily and usually get very good at it. I would suggest that any person going into the "real estate world" to buy or sell a house should educate themselves on the process, the tricks and some of the traps.

I found a few good practical books that are based on common sense, that are unbiased and simple to read. I strongly recommend any of these books:

The Ultimate Guide to Real Estate - (John McGrath)
Don't sign Anything - How to protect yourself from the tricks and traps of real estate(Neil Jenman)
Real Estate Mistakes - How to avoid them How to save your money (Neil Jenman)

These are just a few books I have read and found useful. There are plenty of other books on the market. Just make sure they paint an unbiased view and are written by authors with practical experience in the industry.

All these books can be found in most good bookshops or on ebay.

Best of luck.

Comments by Dean Carver - Property Lawyer

Carver Lawyers - Sydney NSW

Phone (02) 9773 4550

www.deancarver.com.au

The Agent says "you're asking too much - REDUCE THE PRICE"

2011-06-08T16:58:00.001+10:00

This is a common phrase used by many Agents in today's real estate market. Homeowners are being told regularly that their house is not selling because they are asking too much. They need to reduce the price to attract buyers to the property.

After the property has been on the market for a few months and remains unsold, the homeowner will reluctantly reduce the price.....but soon thereafter, the price reduction does not result in a sale. Why not?

Homeowners are all too familiar with this scenario. The issue is not always about the price of the property. Where are the buyers? The buyers aren't there even if you reduce the price. The real problem in today's market is affordability and the ability to secure finance.

Reducing the price does not always secure a sale......take for example a home owner that reduces the price from $450,000 to $425,000, a huge $25,000 price reduction. A buyer interested in this property at a purchase price of $450,000 will need to come up with a 10% deposit which is $45,000. When the price is reduced to $425,000, the buyer still needs to come up with $42,500 (deposit of 10%). By reducing the price it does not substantially change the deposit a buyer needs to get into that property. The real saving on the deposit required is $2,500.

There are less and less buyers with substantial saved deposits in today's market. Unfortunately, the Banks are requiring substantial deposits in order to approve finance for the remaining amount of the purchase price.

Agents need to look to alternative strategies to achieve a sale........but Agents continue to use the old way which is reducing the price. In this market, reducing the price may bring the price of the home to less than what is owed on the mortgage and leave the owner in negative equity.

Agents should consider such options as vendor finance and terms contracts and at least offer these options to a home owner. Times are changing, and Agents need to change with the times.

It is possible to secure a sale without reducing the price, but the homeowner needs to always keep in mind what the true value of the property is when going to the market looking for buyers. Implement the right sales strategy and the property will sell.

If you have a house that the Agent can't sell - give me a call and we can work on a strategy to sell that suits your circumstances.

Comments by Dean Carver - Property lawyer .
Phone: (02) 9773 4550

Should you use a professional photographer when you sell?

2011-06-03T15:21:00.002+10:00

A photograph speaks a thousand words.......

When you place your property on the market for sale, one must agree that you should present the home in its absolute "best light" to appeal to buyers.

With the advent of the internet and the fact that most buyers now look to the internet as their first point of enquiry when searching for a home to buy, it is imperative that you create a great initial impression.

A professional Photographer will cost approximately $150-$300 depending on the number of photographs and the time of day (night time usually costs a bit more). A great photograph of a property can attract buyers that may have not noticed the property otherwise.

Take for example these 2 photos below randomly taken from the internet.......one done by a professional photographer and the other presumably taken by the homeowner or Agent?

Professional photo

Ordinary Photo

From the above internal photos, you can see that the 1st photograph portrays a much warmer and welcoming property which invites further enquiry.

You must remember that once the potential buyer has inspected the property, the only thing they have to remind them of the property when they get home is the photograph. When they show the property to their friends and family, the photo is what gets the reaction......yes or no.

For the cost involved, I definitely think that it is worth getting professional photos taken when you sell.

A more inviting home attracts a higher offer from potential buyers.

Comments by Dean Carver
Property Lawyer and Consultant - Sydney
"helping homeowners engage the right Agent"
Email me - see form to the right

14 Tips to consider when hiring a Real Estate Agent

2011-05-25T10:47:00.000+10:00

Finding a good real estate agent takes some research. Here are my 14 tips you should consider when hiring a real estate agent to sell your property:

Get a Sales History Report for your suburb and street.....find out what other similar properties have sold for in your area
Consider ordering a Valuation from a Registered Valuer so you know exactly what your property is worth in this market
"Phantom shop" the Agent: Visit properties for sale by an Agent you are considering - find out how they treat buyers because that is the way they will treat your buyers.
Make sure the Agent gives you a price guarantee - if they don't get the price they promise, then the fee is ZERO
Don't just choose an Agent because they charge the lowest commission - another agent that charges a bit more might be able to get you a much better price
Find a Good Negotiator - Be careful of Agents that negotiate on their commission. Agents that quickly reduce their own fees will only quickly reduce the price of your property. If they give away their own money, they will easily give away yours.
Be careful of the Agent that gives you the highest quote for your property.
Don't pay for upfront marketing costs. A confident Agent should cover these costs. However, you should consider paying for the costs of a good signboard and a professional photographer. For the small cost involved, these make your property present much better.
Interview Agents until you find one you like
Never hire an Agent you don't like
If the Agent insists on "open for inspections" - make sure they will take responsibility for any loss.
Ask the Agent to substantiate the price quote by comparing to other similar properties that have been sold.
Ask the Agent "How will he get the best price for your property?"
Get legal advice on the Agency Agreement before signing

The above tips are just a few things you should consider and are by no means an exhaustive list.

If you are considering selling your property, make sure you get legal advice before you sign with an Agent. It is imperative that you get a Lawyer to have a look at the Agency Agreement before you sign.

Comments by Dean Carver

Property Lawyer and Strategist

Phone: (02) 9773 4550

Watch out for the Sewer that cuts across the property

2011-05-23T17:49:00.003+10:00

Watch out for the sewer that cuts across the property.

I recently acted for a buyer who was interested in a property that had a sewer that ran straight across the block of land and under the house. It is important that you check the sewer diagram contained in the contract to make sure that you are aware of any sewer or proposed sewer that may affect the property.

A sewer that cuts in the middle of a property can have potential problems if you decide to rebuild in the future or if you wish to put in a swimming pool on the property.

The contract should also contain a letter from the relevant sewer/water authority that indicates that the Authority is aware that there is a property built over the sewer and that it complies with the Authority's guidelines and legislation.

Prior to exchanging contracts it is also suggested that you arrange for a plumber to have a look at the sewer diagram as well as an onsite visit to guide you regarding future development and problems with encasement of the sewer if the house is rebuilt or any further strengthening that may be required.

If you intend putting in a pool in the yard, also worth arranging for a pool company to have a look at the site and the diagram to advise whether a pool is possible.

These are general comments and you should discuss any purchase with your lawyer before you sign the contract.

Comments by Dean Carver
Solicitor at Carver Lawyers

Issues to think about when you buy real estate in todays market ....

2011-04-28T15:12:00.000+10:00

Buying your first home or just buying an investment property can be stressful. Here are just a few tips or issues you should consider when buying your next property:

Make sure you get a list of all the recent sales in the suburb you are buying. Make sure you do thorough research as to what properties are currently selling for in your marketplace.
If your property of interest is near a school - find out what the traffic is like during school hours
Make sure you have your loan approved before you go shopping for a property. A pre-approved loan means you can make quick decisions when required. Tell the Agent you have pre approval when you negotiate, this means you are serious about buying and the Agent will put you near the top of the list.
Check for any heritage listing - Have a look at the Section 149 Certificate contained in the draft contract.
Visit the Council to make enquiries about any property of interest - Are there any outstanding issues or notices against the property?
Talk to your Solicitor well before you start shopping for a property. Let him know that you are in the market to buy and to keep a look out for any draft contracts. Make sure you have the email and necessary contact details of your Solicitor at hand to provide to the Agent when needed.
If a strata property - order a Strata Report. Also ask the Agent whether he is aware of any special levies? See if you can obtain a copy of the minutes of the last AGM of the Body Corporate.
If you see any nearby neighbours outside their property, ask them what they think of the surroundings? You might get some valuable info.
Have you considered a Deposit Bond?
Check the Strata By Laws - If you want, can you keep pets on the strata lot?
Check that Appliances work - Oven, cooktop, grill, hot water etc
Is there Housing Commission properties nearby?

These are just a few tips and issues you should consider when buying property. By no means is the above a definitive list. You should consult your Solicitor before signing any contract.

Comments by Dean Carver

Solicitor and Real Estate Strategist

Can't sell your vacant block of land?

2011-03-22T22:34:00.001+11:00

Selling vacant land in the current real estate market is not easy. Having watched my local market very closely in the last few months, I have seen that many Agents are finding it harder and harder to sell vacant land.

Can't sell your land? What is the solution? Have you considered other alternate selling strategies such as:

Vendor Finance
Joint Venture with a local builder
Joint Venture with an Investor
Delayed Settlement
Part sale
Pay the Buyers stamp duty and expenses

These are just a few suggestions that sellers can consider. The above options can also be combined to real effect.

The idea is to make your block of land stand out from the rest of the properties on the market. Make your property easy to buy and it will naturally become easy to sell.

Finance for land is tough at the moment and buyers are finding it difficult to purchase if their finances are not in order. The Banks have tightened the Loan to Value Ratios meaning buyers need more equity or a bigger deposit. Accordingly buyer numbers have reduced.

The usual course for the Agent after the property has been on the market for a few months is to recommend a price reduction. In this respect, do your research to find out what the actual sale prices of similar properties have been in recent times. this will give you a better indication whether price is the real reason the property has not sold.

If you need a Postcode Report which sets out all recent sales, subscribe to our Newsletter and you will be entitled to receive a FREE report normally valued at $89.00.

Comments by Dean Carver - Solicitor and Real Estate Strategist - Carver Lawyers - phone (02) 9773 4550

When you sell - make sure you advise your Solicitor of specific EXCLUSIONS

2011-03-18T09:54:00.000+11:00

Do you want to keep the chandelier in the hall? the 10m high palm tree in a pot? the enclosed BBQ? Plasma TVs installed on the wall? in built fish tank? in built coffee machine? split system air conditioner? outdoor shed? pot belly stove? pool cleaning equipment?......these are just a few items that are often attached to a property and can be classified as being included in the sale unless they are specifically EXCLUDED in the contract.

When you decide to place your property on the market for sale, at the time of instructing a Solicitor to prepare a draft contract for sale purposes, you should make sure that you specifically advise your Solicitor that you want to make sure that certain items are EXCLUDED from the sale. At this time, give them a list of the specific exclusions.

If the draft contract specifically has your items marked as EXCLUSIONS, there is room to negotiate to get a better price if these items are then included in the sale.

Over the years, I have found that there is many disputes over what a buyer and seller think is included in a sale which can lead to settlement being postponed. It is imperative that the contract details specifically what is included and what is not.

For more information, or to discuss your next sale, contact Dean Carver (Property Solicitor) on (02) 9773 4550 to sell your next NSW property. Don't forget to register to receive our regular Real Estate Tips Newsletter.

Bidding at Auction - Try to be the last to register

2011-03-13T10:45:00.000+11:00

In NSW like many other states in Australia, buyers wishing to bid at a real estate auction must first register before being entitled to make a bid. At registration, the Agent will take the bidders details and need to sight suitable identification such as a Drivers Licence or Passport.

After taking the bidders details the Agent will then enter the details in a register and hand a bidding number to the bidder. A smart tip for a budding bidder is to take a quick look at the register as it is filled out by the Agent, you will often get an indication of how many bidders are registered before you. The Agent or their representative often fails to cover the previous listed registrants.

If the Agent is slack you will get a great insight into how many other bidders are seriously there to bid..

The key is to register as close to the commencement of the Auction and NOT early. Good luck to all auction bidders! Don't let the Agent influence your research or thoughts on price.

More tips - subscribe to Newsletter.

Any questions, ring Dean Carver - Solicitor and Real Estate Strategist at Carver Lawyers. Phone (02) 9773 4550

Is your home insurance up to date?

2011-03-12T09:43:00.003+11:00

As a homeowner, is your building insurance up to date? What would happen if a cyclone hit your area and took your roof with it? Are you insured?

It is always recommended to review your insurance policy to check what you are covered for. Are you covered for cyclone? Hail? Flood? Bushfire? These are just a few circumstances that you should consider.

If you live in a bushfire area or close to a river or waterway, you should specifically ask your Insurer whether you are covered for building damage and replacement in the event of a bushfire or flood respectively. If not, have it included or change insurer. Natural disasters have been common in the last few months and Insurers are naturally keen to try and exclude insurance therefor, so make sure that you are also covered for natural disasters.

Make sure that you are comprehensively covered for all types of events that can cause damage to your property, building and contents of your house. Don't forget valuable items on your property that may also be included in the shed, basement etc......

If you are unsure regarding your policy and what is included specifically ask the Insurer and have it in writing, email or fax. Just in case the Insurer queries in the future or refuses to pay.

Remember, when estimating the value of your property and rebuilding costs, it is better to over insure than under insure. The premiums won;t be that much different. If you think it will cost $250,000 to rebuild, make it $330,000 instead. This will give you a buffer in case.

If you are unsure, get legal advice.

Comments by Dean Carver - Solicitor and Real Estate Strategist (Sydney) - (02) 9773 4550

REAL ESTATE CHALLENGE - Do you have a house that has been on the market for more than 12 months?

2011-03-11T18:41:00.001+11:00

Its time for a challenge! I am looking for a homeowner that has had their property on the market for more than 12 months and has tried every avenue to sell but without success. It might be a home that has been listed at some stage with many different agents, needs repairs to sell, is on a main road or just does not appeal to the right buyer. It may be a house where the loan debt is more than the value and in negative equity?

As a real estate strategist, I look to offer homes to buyers using methods rarely know of by the traditional agent. Do you know of a homeowner that has had their property on the market forever?

Let me make it clear, the price will not be reduced to make a sale, I will mainly be looking at alternative methods to sell without reducing the price.

Houses (not units) that fit one or more of the following criteria may be suitable for the challenge:

Must have been on the market for at least 12 months;
Houses that are in negative equity (home loan more than the value);
Owners that have tried all usual methods through the real estate agent;
property needs some repairs to sell;
any other reason house has not sold?

I would prefer that the house is located in NSW, but will consider other states.

If you have a house that fits one of the above criteria or know of anyone trying to sell but without success, contact Dean Carver (Solicitor and Real Estate Strategist) on (02) 9773 4550 or by email

House prices are inflated by 20 per cent - reports chief economist

2011-03-10T15:48:00.012+11:00

Chief Economist Brian Haratsis from Macro Plan Australia believes that house prices are inflated by 20 per cent and that Australia will have at least 2 rate rises this year. The Economist has told the Herald Sun that."A lot of people could wind up with negative equity and we could have a sub-prime issue on our hands.".

I tend to agree with his thoughts. We are in a real estate market where buyers are really finding it difficult to secure finance to purchase and if they eventually do find finance, they are having difficulty affording the mortgage payments when interest rates rise.

Whilst unemployment rates remain low......there are still buyers who can afford loan repayments whilst they are gainfully employed. As soon as we see unemployment start to rise, which at some stage it will, then we may start to see some homeowners default on mortgage payments.

The flow on effect of rising unemployment is a real estate market where homeowners will be sadly looking to "offload" their homes to reduce debt, but with a flood of owners looking to sell and higher interest rates, buyers may disappear causing the market to slide.

Homeowners could find themselves in a negative equity position where the mortgage debt is more than the value of the property. My experience is that most real estate agents will have great difficulty in selling houses that have more debt than they are worth.......there is just no margin to allow for their commission.

Hopefully not too many homeowners will find themselves in a negative equity position, but if they do, there are solutions available, but not widely reported by the real estate industry.

If you currently have your property on the market but it is overpriced because that is the amount you need to pay the debt, unfortunately your property will not sell. What you need to do is make your property attractive by offering terms that buyers like. Put your property above others. When you make your property easy to buy, then it will be easy to sell!.

If you need some help or guidance selling, ring Dean Carver - Consultant and Real Estate Strategist on (02) 9773 4550.

Dean Carver - Solicitor
Property Lawyer and Strategist
at Carver Lawyers Pty Ltd
Need more tips - Subscribe to our "Real Estate Tips by Carver Lawyers" Newsletter - see right of page

How can a buyer find out how long a property has been on the market?

2011-03-02T11:24:00.000+11:00

How long has the property been on the market?................This is a question commonly asked by buyers for the main reason to find out whether the vendor may now be motivated to sell. The real problem is that many Agents who are asked this question, often lie about the true situation. Agents are taught not to give away the Vendors real position so as to avoid a weaker situation in the negotiation.

Why do Purchasers want to know how long the property has been on the market? The main reasons buyers seek out this information is as follows:

What is the Vendors real motivation. If the property has been on the market for some time, the Vendor may now be ready to sell at a realistic price.
The Real Estate Agents Agency Agreement may be coming to an end and the Agent may be more willing to help the buyer make a deal.
The Vendor is now getting tired of keeping the property neat and tidy to sell and now has the motivation to sell.

All these factors make a stronger case for the buyer during negotiations. Buyers should always try to seek out how long the property is on the market but not rely on the answer primarily given by the Agent. Is there a more reliable way to find out the answer? Where can I get this information?

With the changes made to the NSW legislation over the recent years, vendors who wish to sell their residential home now need to have a contract drawn by their Solicitor or Conveyancer prior to placing the property on the market for sale. The answer is in the contract.

As a buyer, if you look to the title search in the contract, this will have a date on which the search was ordered. This is an indication, but not a certainty as to the approximate time when the contract was first prepared. Whilst you cannot rely on this date as the guaranteed date when the property first came to market, it does give a strong indication as to when the search was done in anticipation and readiness for sale.

In addition, you can also look to the date of the section 149 Certificate as issued by the Council (often referred to as the Zoning Certificate). Again this is also an indicator of when the certificates were ordered for insertion into the draft contract.

Whilst the above suggestions do not offer an absolute guaranteed answer as to how long the property has been on the market, it will however provide strong evidence as to when the vendor started to take action to place the property on the market for sale.

On the flipside, it is always good for sellers (vendors) to keep these certificates updated and "fresh" to avoid informed buyers using these details to assist them in negotiations.

When buying or selling, get the right advice.

Comments by Dean Carver, Solicitor and Real Estate Strategist - (Carver Lawyers) www.carver.com.au - phone (02) 9773 4550

Can't get a Home Loan to buy your dream home?

2010-11-20T10:45:00.001+11:00

Banks are tightening their lending criteria, and home loans are getting harder to get. One must remember that if you borrow more than 80% of the value of the property, most loans will need to be Mortgage insured. It is at this stage that loan applications are falling over. The Mortgage Insurers are really watching who they insure after no doubt taking a big hit in the recent GFC.

Have you recently lodged an Application for a home loan only to be rejected by the Bank for reasons such as - not enough savings or deposit, bad notations on your credit file, self employed or irregular contract work, casual employment, not in your job long enough. These are all reasons that make it hard to get a Home Loan in today's market.

Don't give up! There are other ways to buy property without even walking into a Bank. The team at Carver Lawyers have designed a Home Ownership Program ideal for people who can't get a bank loan.

Over the years I have found that the standard real estate transaction and buying process does not work for everybody and there are other ways to buy property. Don't be locked out of the property market just because you cant get a home loan.

The dream of home ownership is possible using other strategies rarely know by others in the industry. The standard buying process needs to change to make home ownership viable in one way or form to many not just a few.

There are many people that don't comply with banking guidelines including the self employed, contract workers, casual employees and cash earners. The Carver Lawyers can help people that just can't seem to get a Bank Loan.

If you would like more information on the Home ownership Program designed by Carver Lawyers, call (02) 9773 4550 or www.ozihome.com

Buyers finding it harder to get a loan

2010-06-07T12:32:00.002+10:00

The Banks are making it more difficult for homebuyers to get a loan. In a
recent article, one of the largest mortgage brokers in Australia has
indicated that the Banks are knocking back up to 130 prospective buyers a
week.

The Banks are tightening their lending criteria and they will continue to
knock back high LVR loan applications if:

- Buyers do not have a genuine deposit
- They have not been employed in their job long enough
- Borrowers do not have a track record of savings

The Loan to Value Ratio has also tightened. The Banks are no longer giving
100% loans....those days are gone. Banks are going back to a traditional 80%
loan which means that they will lend 80% of the value of the property. You
need to have a 20% deposit.

Whilst some Institutions are doing loans above 80%, borrowers will need to
have a great track record, such as evidence of a regular savings plan of at
least 6 months, long employment with the same employer and other factors.
The Banks are closely scrutinising overtime payments and employment
conditions as part of the loan process.

The key here is to plan your purchase at least 6 to 12 months in advance.
Talk to a good mortgage broker at the initial stage to make sure that you
fit the criteria to get a loan. If you cannot satisfy some requirements,
works towards rectifying those issues before you look at property. Always
have a loan pre-approval before you look to buy.

Also look at getting a copy of your Credit History to make sure that there
are no bad notations on your file.

In an effort to help buyers that would love to live the Australian Dream and
buy a home of their own, but find it difficult to borrow from the Bank, the
team at Carver Lawyers have developed a Home Ownership Program that helps
buyers into the real estate market. If you would like further information,
you can contact Dean Carver, Property Lawyer on Sydney number (02) 9773 4550
or by contact through www.carver.com.au. You can also view our dedicated
Home Ownership Program site at www.ozihome.com

For a full copy of the article.....click below
http://www.news.com.au/money/lenders-say-no-to-loans-as-buyers-knocked-back/
story-e6frfmci-1225875970785

Dean Carver
Solicitor
Carver Lawyers
Web: www.carver.com.au
Twitter: http://twitter.com/carverlawyers
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I'm a purchaser, what happens if I don't settle on time?

2010-05-27T17:47:00.000+10:00

The Contract for sale stipulates a completion date (settlement date), being the date on which both buyer and seller must settle.

If a buyer does not settle on or before the stipulated completion date, then a buyer may be liable for penalty interest under the contract. A buyer needs to make sure that they are aware of what the penalties are for failure to complete on time. The special conditions of the contract normally provide the penalties for late completion, and on most occasions this can range in penalty interest rates from 5% to 20% per annum (calculated daily) depending on the drafting of the special condition of the contract.

For example, if you still owe the seller $300,000 under the contract and there is a penalty interest rate in the contract for 10% per annum calculated daily, and you delay for 5 days, then the penalty interest would be approx $410.96.

In addition to the possibility of penalty interest, the seller may have the right under the contract to terminate or rescind the contract for the failure of the buyer to settle. There are strict time frames in the contract if the seller wishes to take this course.

Failure to settle by the purchaser, through no fault of the seller, will normally also allow the seller to keep the deposit already paid.

There are also further avenues available to the parties including specific performance, termination and rescisssion. Every contract is unique, and all parties should get proper legal advice during the process.

(Note - these are general comments and parties should always get independent legal advice on their particular situation)

Comments by Dean Carver
Property Lawyer
Australia
Ph: (02) 9773 4550

What is included with the sale of property?

2010-05-26T16:59:00.000+10:00

Are you buying a home? How do you know what is included in the sale? Is the dishwasher included? Is the TV antennae included? These and other items are issues that should be specifically addressed in the contract.

The specific details of what is included in the sale is normally contained on the front page of the contract. Buyers should ensure that they properly instruct and discuss with their lawyers as to what they intend including or what they think is included. It is also common for real estate agents to fill out the details of the inclusion. In that case, buyers should ensure that they are aware what inclusions the Agent is marking on the contract before they sign.

Once the Contracts are exchanged and dated, the inclusions cannot be changed unless agreed to by both buyer and seller.

This is also the case with exclusions to the property. For example, if the Vendor does not want his "mounted plasma TV" included in the sale, his lawyer will mark this as an EXCLUSION on the contract. This means that the owner will be taking the TV away from the property at settlement. As a buyer, if you want the TV to remain, make sure that it is marked as an inclusion on the contract.

"pool equipment" is another common area of dispute. If you want the pool equipment to remain on the property, make sure it is marked as an inclusion. Some owners take the pool equipment with them to their new property.

I recently acted for a client that had palm trees on the property (in the ground) that they wanted to take with them. This is uncommon, but was marked as an exclusion on the contract.

Where can you find the list of inclusions on the contract? On the 2005 edition of the contract (as approved by the Law Society of NSW and Real Estate Institute), this is normally found about 1/2 way down the front page in a box.

Before you sign the contract, make sure that you are specifically aware of what comes with the property and what is excluded.

I always suggest that you address the issue of inclusions and exclusions with the Agent at the time of inspection. That way, it is easy to identify what is and what is not included and can be accordingly marked on the contract. You don't want to get to settlement time and find out that the big 50inch TV which you thought would stay mounted in the lounge room has been removed and there are holes left in the wall.

Buyer beware.

(Note - This is general advice only, buyers and sellers should obtain specific legal advice before entering into a contract)

Comments by Dean Carver
Property Lawyer, Sydney NSW
Ph: (02) 9773 4550

New Property Tax for NSW property

2010-05-13T11:41:00.000+10:00

The NSW Government is set to introduce a new property tax on transfers above $500,000. The tax will be added to the existing taxes on transfers and is expected to be 0.2% on property transfers between $500,000 and $1million and will be 0.25% above $1million.

The tax has passed through the NSW upper house late yesterday and it is expected that the new tax will come into effect around July this year.

On a $750,000 purchase or transfer, the new tax will be approx $500 in addition to all other stamp duty and existing charges.

The only positive is that the new tax will not apply to property transfers of value below $500,000. However, with a Sydney medium house price in March 2010 of approx $595,000 according to Australian Property Monitors, it is likely that the new tax will affect many NSW buyers in the future.

For further details, have a look at this recent article
http://www.news.com.au/money/property/premiers-sneaky-tax-on-property/story-e6frfmd0-1225865832122

Stay tuned for the effective commencement date. Buyers should factor these new charges in their own budgets when they look to buy in NSW.

Comments by
Dean Carver - Solicitor
Carver Lawyers (Sydney)
Ph: (02) 9773 4550

27,000 households have already missed mortgage payments

2010-05-11T11:09:00.001+10:00

In a recent article, independent rate monitor, RateCity has indicated that approximately 27,000 households have missed mortgage repayments and this figure is expected to rise.

http://www.news.com.au/money/property/house-prices-set-to-stall-say-experts/story-e6frfmd0-1225864312449

Finally the Reserve Bank looks to have succeeded in slowing the real estate market with its recent rate rise.....only time will tell.

Rising interest rates, increasing unemployment, and rising mortgage defaults can only lead to a slowdown in the real estate market. Good for some, but bad for others.

If you are a buyer, make sure that you allow at least a further 2-3% increase in rates and that you can afford loan repayments at an approximate standard variable rate of 9%.. I would even go as far to say that you should commence making your mortgage repayments at a level much higher than required so that you have an adequate buffer for unforeseen circumstances in the future. For example, if your current rate is 7.5%, why not make repayments equivalent to 9%. Not only will this give you the opportunity to pay off your loan quicker, it should allow you a good buffer if other expenses or repairs come up in the future. Talk to your mortgage broker to make sure you can pay the additional amounts.

With the scenario that sellers are defaulting on mortgage payments, this has allowed the buyer to take advantage of that situation to buy well. Ensure that you have a good negotiator on your side when you go to buy. Remember, you make your money when you buy. So buy right at the beginning.

If you are looking for a professional real estate negotiator to help you with a purchase or help you when you sell, please do not hesitate to contact me.

Dean Carver, Solicitor
Real estate lawyer & Negotiator
Carver Lawyers - Sydney
Ph: (02) 9773 4550

Bank Customers are being ripped off

2010-05-06T11:34:00.003+10:00

Recently the Westpac Bank announced a net cash profit of nearly $3 billion in its half yearly results. Great for shareholders but is it good for the bank customer.

Whilst the Bank is making huge profits, it has been brought to my attention that the Banks are paying customers minimal interest for the use of their money. Take for example, Stgeorge Bank which is currently offering an interest rate of 0.01% per annum for your money in a freedom account. That means the Bank pays you 0.01%p.a and lends other people money at an interest rate of approx 7.0%+. Its clear why the Banks are making huge profits.

For example, if you had $50,000 in your transaction account and the Bank paid you 0.01% then you would receive $5 for the year in interest. If the Bank lent that same money at 7%, they would get $3,500 per year in interest. Its clear who is making the "big bucks"

Whilst there is available the option to customers of putting their money in a fixed term deposit at a better rate, say 5%, this means that the customers money is tied up for a fixed period and cannot be withdrawn without penalty. Many consumers are just leaving their money in a transaction account to which the Bank has access for a small interest payment of 0.01%.

The cash economy is virtually gone and everybody needs a Bank Account, whether it is to electronically pay bills or an Account in which to receive their salary. Employers do not pay cash to employees anymore. Australians are now forced to have some sort of account. Banks use that money and pay you virtually nothing for it/. Is this robbery? You be the judge.

I guess, on a question of law, the Bank needs to give some sort of consideration to use your money. Thats why they give you 0.01%.

Australians should keep an eye on where their money is and what they are getting in interest for that money.

Comments by Dean Carver
Solicitor
Carver Lawyers - Sydney