A. If the house is for private sale you can sign for the house with a subject to clause. For example; subject to a building report satisfactory to me and subject to obtaining finance.

It is then up to you to hire someone and get them to inspect the house for you. This normally costs around $270 and you normally have 7 –14 days to have this done by.

If the house you are purchasing is via auction. You then need to achieve a building report, at your cost, prior to the auction.

Q. My wife and I have found a great investment property to purchase, but I have not seen my accountant yet. Is their any way I can sign the contract of sale and later change the names on the contract?

A. Yes, a lot of investors when purchasing a property will sign the contract and add “and/or nominees” on the contract. This gives them time to see their accountant and decide which names are to be placed on the title for gearing purposes.
The “and/or nominee” being added on a contract of sale, then means you have to fill out with your conveyancer or solicitor a nomination form to nominate who will be on title.

Q. What is Lenders Mortgage Insurance, (LMI)?

A. In most cases the Finance Lender will change a client a once only Mortgage Insurance if they are borrowing over 80% of the value of the property.
Lenders Mortgage Insurance insures the bank against financial loss if, following the default of a borrower, the sale of the security property does not fully clear the loan. Mortgage Insurance does not provide insurance to the borrowers.

Q. Do I need a Conveyancer or Solicitor?

A. The purchase or sale of real estate is probably the biggest single legal financial undertaking you will be involved with in your lifetime.
Conveyancing is the procedure involved in transferring real estate between the owner and the buyer. There are simply too many things to get right and too many things, which can go wrong to leave it to anyone but an experience conveyancer or solicitor.

When you call a conveyancer or solicitor ask for a fixed price for your purchase or sell. Make sure all disbursements are included in the fixed price given. You can then compare apples with apples when you are shopping around.