11 Sep What happens to rates and charges after sale?
Being aware of who’s responsible for what outgoing charges once a sale contract has been exchanged is important for both the seller and the buyer. At Top Gun Conveyancing, we advise, especially buyers, to be fully aware of what they are up for before exchanging contracts.
From when you – the buyer – become owner of the property – it is your responsibility for the rates and other statutory charges related to your new purchase.
What are these rates, or statutory obligations? Things like council rates, strata or body corporate fees. They do not relate to general living expenses like electricity, water, telecommunications etc. (explained further below).
The Top Gun Conveyancing team will be able to ascertain what liabilities from the seller exist from our search on your behalf. Be aware, that in some cases, these liabilities could be somewhat sizeable.
We advise that when you speak with the Top Gun team that we get the search on your potential new property underway as soon as possible. This way, you’ll be quickly aware of what might lay ahead. Otherwise, it could be a fairly messy, complicated and expensive situation, that in reality, may show the potential for purchase to be not worthwhile.
The standard terms in your Real Estate Institute of Queensland (REIQ) sale contract states that any fees – like council rates, strata etc. – will be, generally, applied as adjustments to the price at settlement. In essence, the seller is liable until the day of settlement and the buyer is liable from the day of settlement.
Other general cost considerations when looking at a property (these are not statutory elements and do not relate to the above scenario – rather general living expenses) would include things like:
- Cost of Utilities per month or quarter, for example:
- home and contents insurance
- subscription television etc.
By all means, you should have an understanding from the seller as to approximate costs of the base utilities (water, gas, electricity) and all of these elements should be factored into your general monthly living budget.
As much as anyone, our team wants the purchase of your new property to be a pleasurable experience and create excitement about moving to your new place.
Helping you to avoid pitfalls and navigate the landscape efficiently is exactly why the Top Gun Conveyancing team is here – we’ll be right with you throughout the process to ensure you don’t get stung.