Blog
WHO EVER OWNS THE PROPERTY OWNS THE PROBLEM
A basic law of property is who ever owns a property, also owns any problems associated with it.
What sort of problems?
- Outstanding Rates. The shire and water rates stay with the property, not with the person like telephone, electricity and gas bills do. This means if the rates aren't cleared at settlement, the shire or water corp will come after the buyer, as new owner, for payment.
- Defects to buildings. When you buy a property, you buy the buildings as well and unless you require them to be fixed, you buy them as they are, so make sure you price your offer accordingly, or word the contract appropriately to give yourself protections.
- Encroachments of buildings, fences or other improvements over the boundary to or from an adjoing property. These become your problem after settlement so make sure you know about them before entering the contract.
- And many more ...
So the take home message is don't settle until the seller has fulfilled all his obligations under the contract. If he's reluctant to fix them before settlement, you'll have no chance afterwards.
In over 11,000 settlements we have only seen one or two sellers ever fix anything following settlement. It just does not happen!
So don't let the seller's problems become yours by letting him off the hook by settling before he's fulfilled his obligation.
Irrespective of the circumstances. Ever.
DISCLAIMER: Neither Goldfields Settlements, nor any of its staff are lawyers, so none of the above should be construed as legal advice. Readers are advised to seek their own independent legal advice on these or any other matters involving property dealings, preferably before entering into them.