Buying a luxury property entails a number of common legal issues in residential property transactions, and if you are making plans to invest in real estate, it is important for you to be aware of these issues and make the necessary preparations. Discussed below are some of the important activities that you must undertake in order to ensure that you do not have to face any legal hurdles with your residential property purchase.
Common legal issues in residential property transactions
HDB Approval: It is mandatory for all purchases to be approved by the Housing and Development Board. When you book a residential property, you are required to pay a minimum of 5% of the total price upfront, after which, the purchase is sent to the HDB for approval. This takes about 3-4 weeks. After conducting the necessary inquiries, HDB approves the purchase, and you are free to continue. In case the HDB disapproves of the sale, the developer would have to refund the entire money that has been paid in terms of advance.
Hiring a Law Firm: If you are negotiating a deal with a developer in regards to the purchase of residential property, it is important for you to avail the services of a lawyer who can help you with the legal aspects of the residential property purchase. In case you are making the purchase of the residential property with the help of a bank loan, banks will suggest a few lawyers from their own panel. You, however, have the liberty to opt for your own conveyancing solicitors in Chester to represent you.
Contact with The Law Firm of the Developer: Once you have hired your lawyer, you need to have your lawyer initiate contact with the law firm employed by the developer. Once the interaction has been initiated, the proceedings can begin. The two law firms, or the lawyers, will ensure that a declaration is put in place for the purchase of the residential property. You must discuss every clause of the settlement declaration with your lawyer in order to ensure that you have been provided with everything that the developer had promised.
The Final Payment: Once the agreement has been drawn, you would have to settle the final payment to the developer. In case you are obtaining a housing loan from the bank, the bank will help you to make the payment. In order for the bank to clear the payment, you would have to obtain the necessary documents from the developer’s office. Once the final payment has been cleared, the sale-and-purchase agreement would be signed, and you would be made the owner of the residential property.
Apart from the above-mentioned actions, you would also have to ensure that proper documents have been submitted in order to be entitled to the tax benefits that are offered to property owners of residential properties. If you follow the above common legal issues in residential property transactions then you will be a proud owner of a residential property with the help of conveyancing solicitors in Chester.