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Need a Cheap Conveyancer in NSW.. What are some?

Discussion in 'Real Estate' started by Sk3tChY, 27th May, 2008.

  1. Sk3tChY

    Sk3tChY Well-Known Member

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    Well basically, I was interested in an apartment. Someone had already made an offer on it, which was accepted and had a building inspection and all the typical stuff done, only to have his solicitor mis-read the strata report, meaning they were considering renegotiating, so the agent allowed me to view the property and tol me what this other potential buyer was offering.

    The previous owner has not yet signed any contract or anything, however he's willing to sign this thursday or something for an offer which is lower then mine, so i'm quite confident I should hopefully get the place.

    Anyway, this is my first property, and I don't really know much at all, I've already organised an interview with mortgage choice which should help me get the mortgage side of things organised, however I just recently realised I'll need a conveyancer/solicitor for the paper work and contracts and stuff.

    Does anyone know the cheapest conveyancers I could go to? I really only just need the bare minimum, as I said a building inspection and all had already been done by the previous potential buyer, who also had a solicitor read over the strata report etc. so everything seems in order, I just need someone to basically handle the paper work appropriately.

    Suggestions would be awesome.. I really want to spend as little as possible here.
     
  2. Jacque

    Jacque Team InvestEd

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    So the other sale has fallen through and the agent has revealed their offer to you? Just be aware that the agent may well be bluffing (or not) but it is a common ploy amongst some REA's to "tell" buyers of other offers that were either non-existent or incorrect. Be careful here- don't go above your limit or what you consider the property value simply to outbid another questionable offer.


    So which other offer are you now referring to? Is this from the original buyer who is renegotiating or another party?
    Regardless, if the vendor is agreeing to exchange contracts this THURSDAY then you are really leaving yourself short, especially if you don't have finance at least pre-approved and the searches done by your conveyancer.

    As per my last comment, organising finance is something that ideally needs to be done well prior to making offers or commencing a property search. I hope the MC people can help you out with an approval very very quickly, if you intend to buy this week.
    Sorry to sound like a broken record, Sketch, but it appears as though you've left your run too late on this one- any conveyancer is going to need at least 12-24hrs to both take you on as a client and do a simple contract review. A strata search (which I would recommend you get independently done- check with your conveyancer) also takes minimum 48hrs.

    Ditto the building report- I would NEVER rely on a building report "given" to you by a REA via the previous potential buyer (sounds dodgy to me as he may not even have permission to pass this on) but instead order your own and make an informed decision. YES it costs money but that's the cost of investing in real estate.
    As for cheap- as the saying goes, "You get what you pay for" may perhaps ring true here. However, expect to pay approx $1200-1600 for a reputable conveyancer or solicitor to handle your purchase. If you simply wish someone to review the contract on your behalf and make some suggestions, then why not ring up a few and get some prices? My clients who've done this (or for sales that have consequently not gone ahead) have generally paid around $200 for a simple contract review. You may find someone cheaper, if you shop around.
    I understand your desire to spend as little as possible (don't we all?!) but there are some circumstances where you need to be prepared to spend the funds to get the desired results. This may well be one of those situations :)

    Best of luck with it all and keep us posted.
     
  3. Billv

    Billv Getting there

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    I always use solicitors for my purchases
    Most of them will accomodate you and will stay back after hours
    to go through the contract with you and to sign the documents.

    But since you don't want a full and proper service
    there are some conveyancers advertising online as being cheap.
    Their price seems cheap but remember that Pest and building inspections cost extra.

    This one is doing it for $990+GST
    H-SPHERE

    The cheapest I found is $775
    RAPID CONVEYANCING IS AN ONLINE INITIATIVE OF RAPID CONVEYANCING TO ASSIST BUYERS AND SELLERS OF PROPERTY IN NSW & SA
     
  4. Sk3tChY

    Sk3tChY Well-Known Member

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    Thanks for the recommendations so far.

    As far as trusting the Real Estate agent as far as the other portential buyer goes, I got in contact with him about inspecting the property, and he didn't get back to me for about a week, because this person had already given their offer, and it had been accepted.

    He said this buyer had done the building inspection, strata report etc. all the regulars and was happy with everything HOWEVER the solicitor he used misread the strata report, basically he thought that the potential buyer would have to pay a large sum of money to the strata for some repairs, which wasn't the case, because of this the original potential buyer wanted to renegotiate, in which case the agent then got back in contact with me to view the property.

    I viewed it and liked what I saw, it was advertised for $236,500. I asked the agent what the previouse buyer offered, he said straight up $226,000 which seems more then reasonable for this property to me, so inevitably I've ended up offering $227,500, which is $3,500 less than what I was originally thinking of, so im satisfied.

    So in light of all this, I believe there probably is another buyer, and that he's actually done all the inspections etc. himself, and so I don't really think it would be to necessary for me to. (this may bite me in the ass, but its a risk i'm willing to take)

    The agent was supposed to get back in contact with me today, but for some reason didn't, so I'm assuming he will tomorrow to let me know the verdict.

    I've organised my interview with Mortgage Choice for this Thursday, and so hopefully they'll find an appropriate loan for me. Then I'm guessing all I need to do is fill out the paper work and wait to get approved? I'll have a garuntor, and a bit of a deposit, so it shouldn't be a problem.

    1. Approx how long would it take for the loan to be approved after the paperwork has been done?

    I then basically just need the cheapest possible option for getting all the other paperwork done, as I said I'm a first home buyer, so I don't have a clue what I need done, all I really know is I need a Conveyancer to sign off some contracts or something, or read them? I'm not to sure, but I trust that I don't really need to do any inspections or anything, so really I just need them to do the bare minimum in order for me to purchase the place.
     
  5. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Never underestimate how long loan approval can take. A good independent mortgage broker can help smooth the process. If you are in a marginal situation where there is a chance you won't be approved for the amount you want to borrow - be especially cautious - getting an "in principal" approval may not be enough.

    Also never underestimate how long loan documents can take to be drawn up. This has implications for how long you agree on for settlement - if you try and settle too soon, you may find yourself in a situation where you miss settlement because your lender isn't ready to settle. This can result in very nasty penalties for you to pay. Again a good independent mortgage broker can help you negotiate this minefield and should have recent experience with various lenders to know how long they typically take to arrange documents and get ready for settlement.
     
  6. Sk3tChY

    Sk3tChY Well-Known Member

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    Thanks Sim.

    Well I personally think I shouldn't really have an issue with getting approved for the amount im looking for, I'm basically only looking to borrow about $200,000.

    Well, my offer is $227,500 for the place, so basically I'll be throwing down a $27,500 deposit, so really I'm only hoping to start off with $200,000 debt.

    On top of this I'll have my mum as garuntor.. She hasn't completely paid of her place, but she still has more then $200,000 worth of equity, she only owes a tiny bit on the mortgage.

    I guess my main concerns are;

    - The conveyancing side of things
    - Which lender to go with.

    Someone perhaps able to recommend conveyancers? And a lender perhaps?

    Basically I'd like to get the mortgage with the longest possible term (just so im obliged to pay less interest) thats set to I/O with an offset account. (This way I have access to my funds if need be)

    I'm hoping to get a rate 9% or lower... not sure if this is possible or not.

    Lastly...

    ANYONE KNOW WHERE THESE $200 CONVEYANCERS ARE?!?!
     
    Last edited by a moderator: 27th May, 2008
  7. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Can I make a suggestion?

    You are planning on spending in excess of $227,000 - that's a lot of money.

    Why are you looking for the cheapest possible service to make sure that the settlement takes place appropriately? If it is done wrong, it could have dire consequences for you in the future.

    I'm not saying you have to spend a lot of money, nor that expensive is necessarily better (my conveyancer in Adelaide used to charge me less than $300 - but he came highly recommended and has served me well).

    I'm just gently trying to suggest that a slight change in attitude might be appropriate - when spending large sums of money like this, look for quality professionals to help you - it could potentially save you a fortune.

    Property settlement is a very common activity - and you don't need a highly paid solicitor to do them (some people may insist on using a solicitor though) - you just need someone very competent, because simple errors made now may not be discovered for many years and could be catastrophic later.

    So my kind suggestion is rather than asking "who is the cheapest out there", that you perhaps instead ask "can you recommend a good competent conveyancer who doesn't charge too much but knows what he is doing" ?? It's all just words - but it can mean so much.

    (Sorry I can't recommend any conveyancers in Sydney - I haven't yet made any property purchases here, so don't know anyone).
     
  8. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    I also recommend an independent mortgage broker to help you with finance - they can be worth their weight in gold.

    I use ASAP Financial Services (Rolf Latham) - even though they are now Qld based, Rolf was originally in Sydney and has a large client base here and services the entire eastern seaboard - Contact Us
     
  9. Sk3tChY

    Sk3tChY Well-Known Member

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    Thanks Sim, I think I don't understand exactly what the conveyancers do, could you perhaps elaborate a little..?

    I basically thought they just read over some contracts (which are probably all quite similar anyway) and let you know what all the legal jargon means, and basically make sure everything is in order?

    I'm assuming theres probably a bit more to it now..?

    And secondly, by recommending independant, are you saying Mortgage Choice aren't very good? I really know what I want already, I explained in a previous post, so all I'm really after is that loan with the lowest interest.
     
  10. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Actually they probably won't let you know what the legal jargon means - that would possibly be advice and I'm not sure they'd do that.

    Conveyancers are the final step in the sale/purchase process - there are two conveyancers, one for the seller and one for the purchaser. Their job is to meet (they physically get together on settlement day), check that all the title transfer documents are in order from both parties, and facilitate the transfer (including submitting the documents to the lands titles office).

    Before you get to this point, the conveyancer will check the contracts, do the relevant title searches and ensure that you are actually buying what you think you are buying - check for caveats, encumbrances, or anything else which may prevent settlement from taking place.

    If there is a legal problem with the property you may not be able to settle, or if the transfer documents aren't actually filled out correctly, you may not end up owning what it is you thought you owned.


    In my opinion, the big chains are generally not that good - you are far better off with a smaller boutique who are much more client focussed and prepared to go the extra mile for you if the lender starts playing funny-buggers (which they all do from time to time - especially around settlement time!!!).

    Getting the right mortgage isn't just about the cheapest rate - you have to look at the whole picture. What other facilities do you need with the loan? (offset, split loan accounts, repayment flexibility, redraw, LOC, etc), what are the fees (watch out for early exit/refinance fees and absurdly high monthly fees). It can actually be very complex picking the right loan product.

    The fees can have a significant impact on the total cost of the loan over time - so you can't just look at rates independent of the rest of the loan.

    I go to my mortgage broker and tell him exactly what I want - and he does the number crunching to come up with the best products based on my preferences. He also understands in detail the various servicability models the banks use - so he doesn't waste time and money (and create unnecessary credit reference hits) by applying for a loan I am likely to be knocked back on.

    He also understands which lenders use which valuers - and since I typically use LMI - he understands which insurers we haven't reached our limits on yet.

    You could just walk into a bank and walk out with a loan - but you may end up paying far more over the life of the loan than is necessary.
     
  11. Sk3tChY

    Sk3tChY Well-Known Member

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    Thanks Sim.

    Well as far as the loan is concerned I basically know exactly what I want;

    Loan: $200,000
    Term: 30-40yrs (As high as possible)
    Repayments: Interest Only
    Frequency: Weekly if possible
    Interest Rate: Preferably below 9%

    I'm not sure whether to go fixed or variable, im considering fixing it for a while tho considering they think theres a rate rise around the corner.

    Any recommendations on perhaps which lenders to consider?

    How much would an independant broker set me back?
     
  12. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Mortgage Brokers get paid by the lenders (loan writing fee plus trailing commission) - they should not directly charge you anything.
     
  13. Sk3tChY

    Sk3tChY Well-Known Member

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    In that case does anyone know any good independant brokers in Sydney..?

    And why would an independant broker be better then a more commercial one like MC..? I figured that MC would have more lenders at hand, being more well known etc.
     
  14. Billv

    Billv Getting there

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    Your situation is straight forward so it doesn't matter who finds you a loan.
    A mortgage broker, Aussie, MC, banks etc all will be fine.
    Although, considering the credit issues I think it's important to get a loan
    from a bank. It doesn't matter if MC, Aussie etc is the broker but stick to a bank.

    Cheers
     
  15. Sk3tChY

    Sk3tChY Well-Known Member

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    Thanks BV, thats generally what I thought...

    I figured it would probably be safest to go with a bigger bank as opposed to some smaller lender thats not really well known, and so figured most of the bigger, more commercial brokers would be of more help to me, as they'd have all the big lenders on board.
     
  16. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    There is no correlation between the size of the broker and the type of lender they have access to. Most good brokers (no matter what size) will have relationships with all of the major lenders - including the large banks.

    From my broker I've had loans through Westpac, BankWest, Colonial (CBA), and Homeside (NAB).
     
  17. Sk3tChY

    Sk3tChY Well-Known Member

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    I see...

    Well put simple... It would probably be best to go with one of the major lenders yes? Like ANZ, NAB, CBA or something..?
     
  18. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    A large bank or building society is probably a good choice - ANZ, NAB, WBC, CBA, STG, BankWest, Adelaide Bank, Bank of Queensland, ING, HSBC, AMP, Bendigo Bank, Macquarie, Members Equity, Suncorp-Metway, Rabobank, etc.

    Plenty of choice there (which is why I use a broker to help me do the research).
     
  19. Sk3tChY

    Sk3tChY Well-Known Member

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    Of course... But wouldn't Mortgage Choice be able to facilitate me with all these lenders the same as an independant broker would..?
     
  20. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Of course they will.

    My point all along was only that you don't have to go with a large mortgage broker company - the small guys can do it just as well (and in my experience will do it much better).

    At the end of the day, as BV pointed out, you could just walk into any one of the banks I listed above and walk out with a pretty decent loan - no need to use a mortgage broker.

    I'm just trying to educate you about the alternatives to consider - for most investors (even when buying a PPOR), a mortgage broker is an extremely important part of the team.

    Finance is probably the most important part of the whole investment process - even more so than where/what and when to buy (assuming you are taking a very long term view on your purchase).

    You asked for a recommendation of a broker - I gave you one (about a dozen posts back - someone used by dozens of people on this forum). If you prefer to use Mortgage Choice without a recommendation, so be it - I'm sure you'll get what you need.

    By the way - just to be clear, I have had no personal dealings with Mortgage Choice - and I am not suggesting that they are bad at what they do. I was just talking in generalities, and using Mortgage Choice as an example since that was the company who was mentioned. I have nothing against Mortgage Choice - and they may well do a very good job for their customers.