There are four steps between you and the purchase of the
unit you have found:
- Making sure you inspect the property. Check it out physically and scrutinize the affairs of the Company so you know what you are buying into;
- Obtaining finance;
- What happens after financing;
-
What happens on settlement.
When purchasing any property, buyers should always make their own investigations. They should have their solicitor or conveyancer carry out a search of the company title books and records. This will give an indication of the following:
- Whether there are any disputes in the building;
- What monies are held in the company accounts;
- What the levies are;
- Whether any repairs and maintenance need to be carried out; and
-
Whether there are any special levies planned.
Getting finance – it mightn’t be as hard as you think
One obstacle to buying Company Title units in the past has been the buyers’ belief that they will be hard to finance.
This is not always so. A number of banks and building societies will finance company title home units in the same way as financing a strata title home unit. It is suggested that you speak to your bank or finance company to ascertain what their requirements are.
For further information about financing, please feel free to contact:
Michelle Dub – St George Bank
Mobile: 0434 367 089
Email: dubm@stgeorge.com.au
Owen Evans – Mortgage Choice
Mobile: 0423 826 546
Email: owen.evans@mortgagechoice.com.au
Adrian Bartels - Bartels Property Finance
Mobile: 0414 857 165
Email: adrian@bpfinance.com.au
These finance professionals have experience in financing Company Title home units.
After finance
When you’ve got your finance you will be in a position to exchange the contract.
Within 7-10 days after exchange you should submit your references to the company secretary and arrange to an interview with the Board of Directors. Most Boards require the purchaser to attend the interview personally.
The board will explain how the Company Title building is conducted and usually provide a copy of the rules and regulations. All purchasers should familiarise themselves with the rules and regulations before they attend the meeting.
It would be most unusual for a Board to refuse a transfer of shares. The transfer would only be refused on serious grounds which the company would need to outline.
What happens on settlement
Upon payment from the bank, finance company or the purchaser’s own funds, settlement will take place.
On settlement you will receive a share certificate. That share certificate entitles the purchaser to be registered as a shareholder in the company. Upon being registered as a shareholder of the company the purchaser is entitled to occupy the unit.
For more information, email John F. Morrissey and Company, lawyers.