Nobody ever thinks of lawyers fondly. Even if you have your own speed dial listed lawyer, hardly would you ever associate them with the same joy and relief as you would seeing your own children, spouse or stubby buddy.
Even then, I highly recommend you retain one throughout your buying process – that is from when you are merely inspecting to the point of settlement. You are discouraged from making an offer or bid prior to obtaining legal advice.
Here’s why:
The lawyer’s role is to give you legal advice, acting in your best interests.
What is legal advice?
Well it’s advice about the legal repercussions of your actions or actions that may happen to you during the buying process.
How do you choose a lawyer?
All lawyers should be registered to give you legal advice. As such, find a lawyer who is experienced enough to instil confidence in you that they know what they are doing. Just because someone is a lawyer doesn’t mean that they proactively update themselves on new processes or know how to relate to you.
Speaking of knowing how to relate to you, and this may sound blunt, find someone who “doesn’t make you feel stupid”.
Being able to feel like you can ask any questions and respond honestly, as elementary as the question or response may be is so so so important.
For starters, you are paying someone around $1,500 to give you legal advice. Unless you also receive a similar fee to provide legal advice, chances are, there is a sizeable gap between what you know and what the lawyer knows. It is in your best interest to close this gap because in doing so, you will be better placed to make a well informed bid or offer.
In short, don’t be afraid to call a few lawyers until you find one who makes you feel like you can “ask them anything”.
Great, so a good lawyer knows stuff that I don’t… how do they help me to know that stuff as well?
Let’s look at the section 32 document and the contract of sale. These will be the two main documents you would review prior to making a bid or offer on a property. When you present to an inspection, the real estate agent will usually take your contact details to ensure you receive a copy of both documents to bring you one step closer to buying the place. Upon receiving both these documents, you would forward them to your lawyer to review. Your lawyer then will respond with a 2-3 page email highlighting the things that you should consider before you sign the contract.
Hold on a minute, did you just say a 2-3 page email??
Yes, a 2-3 page email.
But consider this, a professional somebody just summed up upwards of 50 pages into something that you could read with 3 thumb swipes on your smartphone. That in itself is already impressive.
But what do I do with all that jargon I hear you ask…
You ask questions!
For each word that you may not understand, give your lawyer a call to work through the email they have just sent you.
If there is a certificate or report that hasn’t been included in the section 32, ask your lawyer if it is worth thinking about and what the consequences are if you were to ignore it.
If there are special terms in the contract of sale that your lawyer has brought to your attention, ask them if it is in your best interests to accept them or reject them.
Also as contracts are binding documents, wording is very important. So if you are looking to make an offer on a property, don’t assume that your choice of words at the time only have one meaning. It is in your best interests to consult your lawyer so as to be guided on how to phrase additional conditions that you wish to be incorporated into your offer.
In summary…
A lawyer’s time is valuable (or expensive as some of you will forever insist), so don’t expect them to expand on each paragraph in the section 32 or the contract of sale. You already hate them for the 2-3 page email so don’t wish an extended director’s cut of the section 32 on yourself. Rather expect them to answer the questions you have about the things you don’t understand. Have scenarios in mind so that you can understand how the clauses in question fit with your personal circumstances. In doing this, you will get value for your money and most importantly, be prepared to make an offer or bid at auction with confidence.
You’ve worked hard for your deposit, don’t risk losing it (and more!) by not seeking legal advice. You owe yourself this much.
It’s that simple.
If you would like to have a frank and honest discussion with us about buying your first home or next property, we would love to hear from you. Get in contact with us below.
Also if you don’t know a lawyer who won’t make you feel silly, we will gladly tap into our vetted network to find someone who makes you feel at ease to ask your questions and be guided to bid or offer with confidence.
Lastly, if you found this article helpful, even as a starting point, please share it with your friends. You will help us grow this blog into a resource that will help many.
As always, thanks for reading.