Spot the difference Part 2 … due diligence
13 Aug 2019
Many people in our community live in NSW, but Canberra is their main centre for work, shopping and recreational activities. If they are buying a property, however, they may not realise that there are substantial differences between the ACT and NSW conveyancing systems. In this series of articles, Margaret Young explores differences between the ACT and NSW systems related to the Contract for Sale, due diligence, stamp duty and the conveyancing process.
In this second article in the series we look at how due diligence operates in NSW and ACT.
Part 2 Due diligence
Due diligence is making sure that you check all the details of the property locking yourself into an agreement.
When purchasing in the ACT the Contract for Sale discloses more details of the property than a NSW Contract for Sale. Therefore, the due diligence a buyer should undertake to ensure they are fully informed about the property differs.
In NSW, we recommend you carry out the following due diligence:
- obtain unconditional finance from your lender or hold sufficient cash funds to purchase the property
- commission a building and pest inspection
- inspect local council file.
Also, if you have concerns regarding the location of the dwelling on the premises or the boundary, a survey report is recommended, although not often obtained.
In the ACT, these documents are included in the Contract for Sale. Therefore, the main requirements for due diligence are:
- ensuring unconditional finance approvals
- being aware of the boundaries and location of buildings on the property.
How can we help?
Due diligence can vary from property to property; therefore, it’s vital you give your conveyancer clear instructions and let them know any concerns you may have about the property. You can contact our Conveyancing team on 02 6285 8000 or by email.