This information has been provided by
Australian law firm, Australian Conveyancing Services and is applicable in New South Wales
only.
If you are ringing around for
conveyancing quotes, one sure way to know if the service
provider is cutting costs is to ask about the number of
searches that they will do. If they are not doing the
standard ones mentioned below, they are not doing a thorough
job.
REMEMBER: You get what you pay for!
When you are buying a property, one of the major things that will need to be done as part of the conveyancing process is the property searches. These searches are designed to find out if there are any problems with the property or the Seller that would materially prejudice the Buyer. That way, the Buyer knows before they hand over the money at settlement, because afterwards it is too late to complain.
Because the purchase of a property is such a significant investment, it is wise not to skimp on the number of searches that you do.
Standard Property Searches done in New South Wales
The standard property searches that most Solicitors will do for you if you are buying a property (and the ones that
Quicklaw recommends and
which are included in the DIY conveyancing service) are:
Titles
Search - a title search will be attached to your contract. You would however normally order a final search at completion, to check that nothing has changed since the date of the last title search. If you are borrowing, your financier will want a copy of this search handed over at completion
Environmental Protection Authority search - this search tells you whether the property you are buying is included in the NSW Government contaminated land register (for instance if it was previously a mine or dump or some other operation that contained hazardous substances)
Land Tax search -
this search tells you if the Owner owes any land tax in
relation to the property. If the owner did not pay it
before settlement, the monies due would pass on to you
as the new owner
Bankruptcy/Company search -
tells you if the owners are bankrupt/wound up - if so,
they could not hand over the ownership of the property
to you without the Official Receiver in Bankruptcy’s
approval
Roads
and Traffic Authority - ascertains whether the property will be affected by any road planning proposals
Local Authority search -
A section 603 Certificate regarding rates status is a
necessity
Water Board Search - If there is a separate Water Board in the Area a SECTION 66 Certificate must be done for water rates status
Telco
Search - to ascertain the existence of underground
telecommunications cabling - see our
article Underground cables - Buyer
Beware
For
Units and Townhouses
Some additional searches are standard - they include:
Owner’s Corporation search - to see if there are any claims regarding the
Owner's Corporation by any of the Unit Owners
Strata Inspection Report -
this is a physical inspection which is done to see what
owner’s corporation levies are owing, the insurance, and
a host of information about the goings on in the Owner’s
Corporation (eg disputes, any litigation, budget
forecasts, etc) This search should be done PRIOR to
exchange of contracts
Cost of Standard Searches
The search outlays will vary depending on the Local Council search, but the following is a rough guide:
For Vacant Land/House and Land: $220.00
- $290.00
ForUnit/Townhouse: $420.00 - $475.00
Additional Searches that may be required:
The Zoning Certificate attached to the
Contract by the Seller is a very good indicator as to whether additional
searches my be required. This should be assessed as per each
individual property. For example:
If
the Zoning Certificate indicates property is affected by
mine subsidence, then a mine subsidence search should be
done
If
property is affected by flooding then you should examine
the likelihood of flooding and to what extent
Both of
the above searches should be done PRIOR to exchange.
State Rail Authority
If the property is near a railway, this search will advise whether the property is likely to be affected by future railway proposals.
Transgrid (POWER)
An additional search to do if your property is located near powerlines.
Education Department Search
Checks on whether any schools
are planned for the near vicinity.
Heritage Search
If you believe that the property may be listed on the heritage register (for historically significant properties).
Survey Plan (offline)
When you are unsure of the property's boundaries, particularly useful in inner city areas where houses may not be built entirely within actual boundaries.
