Always Do Your Homework Before Buying Property

You should always do your homework before buying any property. Here, we discuss various things you need to consider before and during your property purchase.

First, if you have little time to run around yourself, you may want to hire property agents and finders to do all the research for you. An agent can scout for properties which will suit the need of their clients both in terms of price and any specific details of the property, for example size, style, location of the property. This will save you time, money and effort in the long run. Agents can also offer advice when it comes to financing and conveyancing your purchase.

Second, look for a price range that is convenient to you. It is best to decide on a budget that will allow you to make monthly financing payments easily should there be interest rises in the future.

Third, it is sometimes advisable to be armed with an option to purchase the property. This will offer you security that the property will be on hold by virtue of the option contract. An option agreement binds the seller to you; however, you are not obliged to exercise the option, i.e. you may pull out of the purchase for whatever reason further down the line.

Fourth, it is noteworthy to hire a lawyer. It is best to do this early on in the purchase rather than last minute. Conveyancing paperwork can sometimes take longer than you expected so it is always best to begin the conveyancing process as soon as you have agreed terms with the seller.

Fifth, if you are buying the property using external finance, it is always wise to have a financial adviser to run you through the numbers. You need to be clear of your monthly repayments and ensure that these are affordable even when interest rates rise by several points.

Sixth, once the option to buy the property is exercised, let the lawyers do the job. They are tasked to inspect and investigate the different legal issues pertaining to the property. This will include the inspection of the title as to validity of the title. There is also a need to see whether or not there are certain liens or encumbrances that need to be settled before you can purchase the property.

Lastly, the payment settlement must be clear. For real properties, actual delivery of the property is the operative act that conveys the property. The payment of the price is the payment of the consideration of the contract. If the property is encumbered or if it has liens, it will be advisable to execute contracts that will delineate the terms and conditions governing the relationship of all concerned parties. If the property is currently subject to a mortgage, this mortgage will have to be settled before the property can be transferred to your name.