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Who’s on your team?
A Quick Guide to Choosing a Lawyer, Surveyor & Valuator When Buying a Home.
Buying a home is not the easiest process in the world, that’s why you should always have a strong team to support you. Yes, a key partner on your home-buying team is your bank which provides financing to purchase the home. However, your team is not complete without a lawyer, surveyor and a valuator. Not clear on what these partners do? Let’s look at how you can choose the best lawyer, surveyor and valuator to make your home-buying experience a winning one.
Rule 1 – Choosing your Lawyer
Never use the vendor’s lawyer. When buying your home, you want to ensure that your lawyer has your interests as their first priority. They shouldn’t have to balance that with the interests of the person you’re buying the house from. You also want to select a lawyer with real estate experience. A good place to start your search is with a recommendation from your realtor. The realtor will not only have worked with many lawyers throughout their career, they usually recommend the most efficient one, since the faster the lawyer carries out their activities, the faster the deal is completed.
Once you have selected a property, your lawyer becomes the go-between for you and the seller. First, your lawyer will obtain either the volume and folio number of the title, or a copy of the title. They will use that information to ensure that the person who is selling has the right to sell. They will also check for any other claims on the title that would hinder a transfer. Then, once you’ve made an offer, your lawyer will be the one who reviews the agreement for sale drawn up by your seller’s lawyer to ensure that there are no terms contrary to your interest. The lawyer will also need to be present for the signing of the sale agreement. Keep in mind that purchasing a property involves several fees, including lawyer fees, stamp duty and transfer tax, as well as the deposit. The deposit is usually anywhere between 5-10%. It would therefore be good to have at least 10-15% of the value of the property in hand when you are ready to commit to the home buying journey. Some financial institutions, such as NCB, offer 100% financing but the fees are normally out of pocket. You should also keep in mind that the deposit is required upon signing of the agreement. The cost for the preparation of the sales agreement is usually shared equally between the seller and the buyer.
Rule 2 – Choosing your Surveyor
While the vendor’s lawyer is drafting a sales agreement, it’s a good time to find a land surveyor and get your surveyor’s report going. The surveyor’s report will locate and mark out the boundaries of the property, and ensure that there are no breaches of the land title. A breach could be something as simple as a fence being too close to a building, or as significant as an extra storey on a house.
It’s important to know these things because a breach can prevent you from accessing a mortgage. The surveyor will also confirm that the property you are interested in is the same as the one on the title that you have been given by the seller. A good place to start your search for a surveyor is online, at myhome.jncb.com.
Rule 3 – Choosing your Valuator
The other report you need to secure is the valuation report. The valuator will assess the value of the property by looking at the price of similar properties in the area. They will also consider the size of the house and the land it sits on, the neighbourhood, the age and condition of the structure and so on. The valuation report is important because you do not want to purchase a property far above its market value.
If you choose to make an offer that exceeds the value assigned by the valuator, your mortgage provider may choose to lend no more than the property’s true value. On the other hand, if the purchase price is lower than the property value, you would have gained additional equity. You can also find a list of valuators online at myhome.jncb.com Now that you know who your home buying partners are and the role that each person plays, you are in a good position to put together your winning team. Always take the time to carefully select the members of your home-buying team – remember, team work makes the dream work!