Guide to Buying your First Home

29 BUYING PROCESS Paying your deposit You’ll be required to pay a minimal deposit which could range from $1,000 to $5,000 on the day to secure the lot while the contracts are prepared. After you’ve signed the contract, you will be required to pay the balance of 5 or 10 percent deposit. If you only have 5% and the developer requires 10%, you will need to have the sales representative add a clause providing you time to apply for your housing loan. This will give you time to save the balance of the 10% deposit provided by the bank or alternative lender you are using for your home loan. Section 32 The first document you’ll be introduced to is the Section 32 (also known as a Vendors Statement). This provides a great deal of information regarding the real estate you are purchasing. The requirements of the Vendors Statement are set out in Section 32 of the Victorian Sale of Land Act. This is very much a ‘seller beware’ document, it is the landowner’s responsibility to make sure all the information contained in this document is true and correct. If you later establish that this is not so, then there can be severe consequences for the seller. There’s also a strong likelihood you will be able to walk away from the sale and be refunded any money you may have paid out at that stage. You must be presented with a copy of the Section 32, signed by the owner or one of their authorized representatives, prior to signing a contract. Then you’ll be given a copy of the contract; the salesperson will walk you through this document and insert your personal information. If you’re undecided whether the contract should be in your name, your partner’s name, or a family trust or company – you should get the representative to add the words ‘and or nominee’ to the contract after your name. This will allow you time to discuss this matter with your accountant and decide who or which entity of yours to hold the title in. If there’s something you don’t understand, ask the representative, they’re trained on these matters and it is their job to ensure you have a good understanding of what you’re required to sign. If for any reason you still don’t understand what is contained within the