1. Decide to Purchase
Before you commence looking for a home:
- Make a list of the features you are looking for in a property;
- Speak to your lender regarding how much you can borrow.
2. You’ve found a property
The agent will liaise with you directly in regards to the negotiations of the purchase price.
Once you and the vendor have agreed on the purchase price there are two ways to exchange a Contract:
- Cooling off period;
- Unconditional exchange.
3 (a) Cooling off period
- The agent gets both parties to sign the Contracts. You pay a non- refundable deposit of 0.25% of the purchase price.
- The property is then taken off the market for a period of time normally between 5-10 days. For an “Off the plan” purchase it is mandatory a 10 day cooling off period is entered into.
- An exchange under a “cooling off” period takes the property off the market. The vendor is precluded from accepting a higher offer from a rival bidder.
- The Contract will be reviewed with you and any changes will be requested.
- Unconditional loan approval and satisfactory reports/searches must be obtained by the expiration of the cooling off.
- The balance of the deposit is payable at the expiration of the cooling off, failure to pay the balance of the deposit is breach of the Contract.
3 (b) Unconditional exchange
- The agent issues a sales advice to both the vendors and purchasers solicitor to advise them both of the sale.
- The vendors solicitor then issues a Contract to the purchaser solicitors.
- Contracts are reviewed and any changes are requested.
- Once you have unconditional loan approval and satisfactory reports/searches, you pay the deposit and Contracts are exchanged unconditionally.
- A solicitor/conveyancer acting for the purchaser needs to sign a Section 66W this waives the purchasers cooling off rights.
- The property will remain on the market and other prospective purchasers can make an offer on the property and the vendor can accept this offer until exchange of Contracts have taken place.
4. Post Exchange
- Mortgage documents are issued by the bank and signed by you.
- Property enquires are ordered.
- Stamp duty is assessed with Revenue NSW.
Settlement figures and a settlement breakdown is provided to you. Any balance of funds (if any) needed to be transferred to the solicitors trust account 24 hours prior to settlement.
You arrange a final inspection of the property with the agent.
Settlement occurs electronically using a platform called pexa “Property Exchange Australia”.
6. Post Settlement
- Redirection of mail.
- Advise RMS, banks etc change of address.
Enjoy your new home.
Written by Megan Johnson.