Buying your first home in New South Wales is a significant milestone. However, the process involves legal and financial complexities, and even small errors can have costly consequences. At Pannu Lawyers we regularly see first home buyers make avoidable mistakes that delay settlements, increase expenses, or create unnecessary disputes. By understanding these pitfalls and taking preventative action, you can protect your investment and enjoy a smoother purchase.
1. Not Getting the Contract Reviewed Before Signing
Too often, buyers commit to a property by signing the Contract for Sale without first obtaining legal advice. In NSW, once you sign, you are bound by the contract’s terms subject to cooling-off period, which almost always favour the seller. Therefore, a pre-signing contract review by experienced conveyancing solicitors is essential. We identify hidden clauses, unfavourable settlement terms, and special conditions that could work against you. At Pannu Lawyers, we ensure you understand your rights and obligations before committing to the purchase.
2. Failing to Secure Formal Finance Approval
Many first home buyers rely on pre-approval from lenders, believing it guarantees their loan. However, pre-approval is only an indication, and it is not a binding commitment. If your financial circumstances change, or if the property is valued lower than expected, your loan may be declined. Consequently, you could lose your deposit and face breach of contract penalties. To avoid this, secure formal unconditional approval before exchanging contracts unconditionally. The conveyancing solicitors at Pannu Lawyers ensure finance conditions are properly managed from the outset and you are advised in clear terms on importance of the unconditional approval before you proceed to unconditional exchange of contract.
3. Overlooking Stamp Duty Concessions and Grants
NSW offers several government incentives for eligible first home buyers, such as the First Home Buyer Assistance Scheme and the First Home Owner Grant. Unfortunately, some buyers fail to apply on time or assume they are ineligible without checking. As a result, they miss out on savings worth tens of thousands of dollars. Our team at Pannu Lawyers ensures you claim all applicable concessions and grants well before settlement, avoiding costly oversights.
4. Ignoring Building and Pest Inspections
In an attempt to save money, some first home buyers skip building and pest inspections. However, this is a high-risk decision. Without a professional inspection, you may not discover structural defects, termite damage, or water penetration until after settlement. In NSW, the “buyer beware” principle applies, meaning the seller has no obligation to fix problems after the sale is completed. By arranging a comprehensive building and pest report before exchanging contracts, and with guidance from the conveyancing solicitors at Pannu Lawyers, you safeguard yourself from unexpected repair bills.
5. Underestimating Additional Costs
Finally, many first home buyers budget only for the purchase price and overlook other expenses. These include conveyancing fees, lender charges, mortgage insurance, council rates, utility connection fees, and moving costs. Underestimating these expenses can cause last-minute financial pressure. At Pannu Lawyers we provide a full breakdown of expected costs early in the process so you are financially prepared for settlement.
Conclusion
The NSW property market is competitive, and first home buyers who fail to prepare risk losing both time and money. By avoiding these five common mistakes and engaging experienced legal representation from the start, you can secure your home with confidence.
If you are buying your first property, contact Pannu Lawyers expert conveyancing solicitors who will protect your interests, maximise your entitlements, and ensure a smooth path to settlement.
