What to get from your agent before you offer or bid.

You’ve searched for months, you’ve found the place that ticks your boxes (well at least most of them), you’ve done your homework and all the relevant checks, now you’re ready to make an offer or bid at the auction.

Before you make your next move, it is important to ensure you’ve obtained a few critical documents from the real estate agent.

Agents must follow a number of rules.

They must provide a statement of information. It contains important price information to assist home buyers.  It is the first thing you should check once you have found a property you like.

It must include:

·        A selling price or price range for the property of up to 10%

·        Details of the 3 most comparable property sales - including the address, date of sale, and sale price, if available.

·        The median house or unit price for the suburb.

You can get a Statement of Information:

·        At the property's open for inspection

·        By checking online advertising - agents often include it with the property listing as a 'Statement of Information' tab or a PDF you can download

·        From the agent - they must give it to you within 2 business days of your request.

Before you make an offer or buy a property, you should ask to see a Section 32. This document is usually prepared by the seller’s legal practitioner or conveyancer.

The reason it is called a Section 32 statement is because the information it must contain is set out in section 32 of the Sale of Land Act 1962.

The Section 32 statement contains information about the property’s title, including:

·        Mortgages

·        Covenants

·        Easements

·        Zoning

·        Outgoings (for example, rates)

·        Declaration if located in a bushfire-prone area.

As it is a legal document, it must be factually accurate and complete. If it contains incorrect or insufficient information, you may be able to withdraw from the sale or take legal action against the seller. You might also wish to get your conveyancer or solicitor to review the document prior to making an offer.

Remember, a critical aspect to your success is securing your finance and obtaining pre-approval.  To obtain pre-approval, get in touch today, or complete our 5-minute home loan assessment.