As your mortgage adviser, I consider myself as your first line of defence when it comes to getting things set up correctly. I’ve worked with hundreds of clients of whom each have different needs and so I can help get you get started and guide you through the entire home buying process.
However, I’m not a legal expert.
A solicitor is your last line of defence and is a crucial to your personal protection when trying to buy a property. You MUST have a solicitor at some stage during the home buying process, but the question is, when is the right time to engage one?
Generally speaking, the earlier you speak with your solicitor, the more value and protection you will get.
When you sign a Sale & Purchase Agreement, on the document you must enter your solicitors’ details and so it is at this point that you will have had to engage a solicitor in some capacity to proceed any further.
When you make an offer on a property, it can be either a conditional offer or an unconditional offer.
When the offer is unconditional (this is the same as bidding at auction) and your offer is accepted, there’s no backing out – you now own the property pending settlement date. So in this case you’ll need your solicitor to undertake all of your legal due diligence prior to making that offer. This is on top of having your finance, building checks, and any other due diligence done as well.
When your offer is conditional (i.e. on either finance, building report, LIM report, legal review, or all of the above), you then have the advantage of satisfying these conditions after your offer is accepted. So in this case, the bulk of the work done by your solicitor can be commenced after you have the property under contract for sale.
However, some of the highest value that solicitors can provide to a client is explaining how negotiation works, making your first offer and picking the right conditions for their situation. So it almost always pays to have some assistance from your solicitor before you make your offer, even if the offer is conditional.
Having the conditions set correctly is so important that I’m going to re-emphasise this point. You are entering into a legal contract and if you do not have the adequate options to get out of this contract in the event you are unsatisfied with anything regarding your ability to purchase the property, then this could cost you a lot of money.
Sure, your solicitor costs money but it could be the most valuable money you spend in your entire life. Also, you may be eligible for a cash contribution from the bank to help cover some or all of the cost of your solicitor.
I have trusted legal partners who I am happy to refer you to if you’re ever looking for a recommendation.