Common Pitfalls in Property Transactions in South Australia (and How to Avoid Them)

Whilst buying or selling your property should be an exciting time, it can also be very stressful as the conveyancing process can feel like a complex map of legal documents that need to be navigated through, with deadlines to complete and fine print that you simply cannot understand.

This is why it is so important to employ a reputable conveyancing firm like Blackwood Conveyancing, to make your journey as smooth and as stress-free as possible.

Having a trustworthy conveyancer working for your best interests can help you to avoid falling into common pitfalls. Failing to conduct thorough due diligence by not obtaining the right searches or not completing necessary building inspections and misunderstanding legal obligations and timelines that are set out in contracts can waste both time and money.

As can the common mistake of underestimating all the actual costs and associated payments with the property transaction. It is common too for a person to make poor decisions that are based on emotion rather than experience when they get their heart set on something that may be better avoided.

General Pitfalls for Buyers and Sellers

Buying and selling a property are two different things, and obligations, documents and costs will be different for each side. Many people are involved with the two different transactions at the same time as they will be up-sizing or downsizing their home.

One of the most important things to remember on both sides of the transaction is to remain patient. There are significant legal and financial commitments involved with property transactions, and rushing decisions, whether that is due to your own personal urgency or market pressure, can lead to costly mistakes.

Thinking you can save yourself time and money by not seeking professional guidance, more often than not ends up costing you much more in the long run. Unless you have a very good understanding of the complex legal and financial aspects of property transactions, and a lot of time to dedicate to the deal, then it is strongly advised to seek a conveyancer with the knowledge and experience to complete the transaction smoothly and without any hidden costs or mistakes.

Poor communication between all parties often causes misunderstandings and delays. There are a lot of people involved here: buyers, sellers, agents, conveyancers, banks and lenders, so it is vital to keep a clear and timely communication between everybody to ensure the transaction goes through smoothly.

6 Common Pitfalls for Buyers

1. Additional Costs: Don’t underestimate additional expenses when buying a property. Stamp duty, or transfer duty is your responsibility, as are strata fees or strata levies, council rates and any ongoing maintenance costs.
2. Financial Planning: Make sure you have secured formal finance pre-approval before making an offer, otherwise the offer may fall through, and you could lose the deposit.
3. Building and Pest Inspections: Many of the older South Australian properties have non-approved building work or structural issues that can be expensive to fix or even lead to council penalties. Reassurance comes from getting all the necessary inspections completed.
4. Understand the Contract: Make sure you’ve read all the clauses of the Offer to Purchase contract including the implications of the cooling-off period. It is a legally binding document once you have signed it.
5. Know Your Responsibilities: Once the cooling-off period has ended you are responsible for the property and arranging building insurance, not at settlement. Not doing so at the right time can be a major risk.
6. Title Searches and Zoning Laws: Fully investigate any boundary disputes or illegal structures fully, otherwise it may lead to legal complications later. If you plan to develop the property or use it for a specific purpose like running a business from home, zoning laws will need to be checked.

4 Common Pitfalls for Sellers

1. Disclosure of any Defects: You are required to complete a Form 1 disclosing any information or defects you know about the property such as structural problems, termite damage or zoning issues. Failure to do so can lead to legal action or cancellation of the sale.
2. Proper Valuation of Your Property: Advertising your property at a substantially lower price than its estimated selling price can lead to hefty fines and reputational damage. Equally inflating the price is likely to deter buyers and lessen the chances of negotiation later on. Research realistic market prices and request a comparative market analysis (CMA) from your agent before you list your home.
3. Don’t Breach Your Contract: Make sure you have completed any required repairs and outstanding mortgage discharge paperwork before the settlement date, or you could be in breach of contract and incur penalties.
4. Complete Documentation: Make sure all your paperwork for any certificates you are providing, such as compliance certificates, are correct and in place, otherwise you may cause significant delays in the settlement process.

How to Overcome These Pitfalls

There is so much to think about when buying or selling a property, and a lot of emotion goes into building a home, so don’t let it run away with you. Conveyancers are professionals who specialize in the legal aspects of buying and selling property, so you don’t have to.

You can get tangled up in so many of the legal and financial aspects of property transactions and caught up in the emotional side of it to that it may end up costing you not only time and money, but your health too.

It can be extremely stressful if you don’t know how to navigate the legal system, so employ Blackwood Conveyancing from the start, and our knowledgeable and experienced team of conveyancers will keep you on track, fully informed and clear in the picture of what is going on throughout your whole property transaction.

Don’t risk costly mistakes by trying to do things alone, we are here to help, and with over 40 years’ experience we really know what we are talking about. Get in touch with our team here.