Buying property isn’t just a lifestyle move; it’s a legal and financial merger.
When you’re house hunting, it’s easy to get swept up in the aesthetic of a home, the layout, the light and the neighbourhood.
Property lawyer Carolyn Dorrian, founder of Dorrian & Co, sees the aftermath when the excitement fades and the legal reality sets in.
“Buying property isn’t just a lifestyle move; it’s a legal and financial merger,” she said.
“The smartest buyers are the ones who treat it like a business transaction first and a home second.”
If you want to protect your bank account and your sanity here are the five things Ms Dorrian tells her clients to keep in mind before they sign on the dotted line:
Property lawyer Carolyn Dorrian, founder of Dorrian & Co.
1. Pre-approval isn’t a promise
Many buyers treat a pre-approval letter like a golden ticket. It’s not.
It is an initial indication based on your life at that exact moment.
I’ve seen clients secure pre-approval, go on maternity leave, and then find out their reduced income means the bank won’t fund the final settlement.
Even if your life doesn’t change, the bank’s rules might.
For example, if you’re buying an off-the-plan apartment, your lender might suddenly stop lending in that specific building because they’ve reached their exposure limit.
Always double-check your lender’s appetite before you make a binding commitment.
Do you research before buying or building a home.
2. Date the property, marry the contract
The house is only half the story, the contract and title tell the rest.
You might see a backyard perfect for a pool but the title search might see a utility easement that makes digging impossible.
Before you fall in love, look at the zoning, height limits, and easements.
We often find hidden restrictions, like unapproved structures or council policies that can tank a property’s future resale value or kill your renovation dreams.
Don’t buy a property for what it is today, buy it for what the law allows it to be tomorrow.
Don’t forget the hidden costs associated with buying a property.
3. The hidden 10 per cent
It’s a common trap to focus solely on the deposit and the sale price.
In reality, the true cost of acquisition is much higher.
Once you factor in stamp duty, legal fees, strata reports, council rate adjustments and immediate repairs, you’re looking at a significantly larger number.
If you haven’t budgeted for the peripheral costs of buying, you’re going to feel the squeeze the moment you get the keys.
The real skeletons are usually buried in the paperwork.
4. Paperwork catches what eyes miss
A building and pest inspection is the bare minimum, but the real skeletons are usually buried in the paperwork.
I’ve had clients buy into beautiful apartment complexes only to discover (too late) that the strata minutes were already buzzing with talk of concrete cancer or massive upcoming levies for structural repairs.
Due diligence will protect you. If the owners’ corporation is planning major capital works, you want to know about it before you’re the one receiving the bill.
Stay commercially rational when purchasing a property.
5. Emotion is an expensive luxury
FOMO is a very expensive emotion. We frequently see buyers rush to put down a 0.25% deposit just to lock it in, only to realise a few days later they haven’t sold their current home or their financing is shaky.
Walking away during the cooling-off period means losing that deposit.
On a million-dollar home, that’s $2,500 gone for nothing. Stay commercially rational.
If the timing doesn’t align with your broader financial strategy, it doesn’t matter how nice the kitchen is, it’s not the right deal.
English (US) · 