Many buyers and sellers of property are not doing their homework – and their oversights could end up costing them thousands of dollars, according to a new survey of conveyancers by Perfect Portal, a conveyancing sales management system.
Some of the most common mistakes include not having finances ready, not understanding a contract before signing, and not understanding the hidden costs of buying or selling a home, particularly in relation to stamp duty.
“In fact, I heard of a case recently when a vendor on the northern beaches in Sydney failed to read and understand the contract thoroughly and did not advise the conveyancer of a special levy in place until 2019 imposed by the body corporate for building works,” said Stephen Wood, executive chairman of Perfect Portal.
“As a result, the conveyancer could not negotiate with the buyers to take responsibility for this levy before the contract was signed, and the vendor ended up paying an additional $20,000 for a levy even though they no longer owned the property. The reality is when it comes to contracts no one can be too careful.”
Perfect Portal’s survey also confirmed that stamp duty relief in New South Wales has led to a sharp increase in the number of people looking to purchase their first home, with 44.4% of conveyancers confirming that they’ve seen a surge since the relief package was introduced by the Berejiklian government on July 1.
Stamp duty was dropped for new and existing homes valued up to $650,000, and stamp duty on homes valued up to $800,000 were discounted.
And despite the glut of apartments coming onto the market, the survey found that houses, not apartments, are still the preferred option for purchasers. Only 38.5% of conveyancers said people are purchasing apartments, while 61.5% said people are purchasing houses.
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