If you are thinking of purchasing, please give us a call and arrange for the Contract to be sent through to us for review! Did you know there is NO cooling off period if you buy at Auction? You need to carry out any inspections and we need to look through your Contract so you know exactly what you are buying before you go to Auction. You also need to have your finance in place.
Even though Purchasers have the safety of a 5 business day cooling off period, if for whatever reason you decide not to purchase, you will forfeit 0.25% of the purchase price to the Vendor.
Before you sign…
Once you have signed a Contract and they have been exchanged, we can request amendments to the Contract, however the Vendor does not have to agree to the amendments. Therefore, it is quite important for you to call us BEFORE you sign anything so we can at least find out what is important to you (such as completion dates, etc) and you can then negotiate these with the Vendor. If you are not buying at Auction, you will have the safety of a 5 business day cooling off period however if you decide not to go ahead with the purchase for any reason, you will lose your initial 0.25% (of the purchase price) deposit.
Contracts exchanged with a Cooling off period
- The Agent will arrange for you and the Vendor to sign the Contract and will exchange Contracts under a cooling off period which is 5 business days (you may request a longer period if your mortgage broker or banker believes you will require a longer period).
- The Contract is sent to us and we will review and request any amendments to the Contract. We will then explain the Contract to you and liaise with your mortgage broker/banker to ensure your finance is in order prior to the expiry of the cooling off period. Depending on the type of property being purchaser, during this time we can also arrange Building & Pest Inspections, Strata Inspections, Surveys and Building Certificates on your behalf.
- We will ensure you have received all your inspections back and your formal loan approval is received in writing by us. Before 5:00pm on the final day of the cooling off period, you must pay the balance of the deposit to the Agent (unless advised differently).
We will contact you to ensure this has been done and that you are 110% ready to commit to the purchase. After this time, if you have not decided to rescind, the Contract is then unconditional which means that you and the Vendor are now locked in to the Contract.
Contracts exchanged without a Cooling off period
We will receive advice from the Agent and will then request a copy of the Contract from the Vendors Conveyancer/Solicitor. The process is very similar to the above except you are not locked into the purchase yet. This means that your property is still on the market and the Vendor may still sell to any purchaser.
We will review the Contract and explain it to you. Once you are satisfied with the initial inspections and you have your formal loan approval, we will arrange for you to sign the Contract. At this time you will need to provide us with a cheque for the deposit (unless otherwise advised) which we will send with your signed Contract to the Vendors Conveyancer/Solicitor. We will also send a signed Section 66W Certificate which waives your cooling off rights. This will be explained to you before we sign and send it off.
Once exchange occurs, the Contract is unconditional and both parties are then locked in.
Your mortgage broker/banker will normally meet with you to sign your mortgage documents. You will need to advise us when these have been sent back to the bank. We liaise with your bank and provide to them all documentation they require in order to have your loan ready for settlement.
During this time you will need to arrange Building Insurance for not less than replacement value noting your lender on the policy. Some banks will have specific requirements with regards to the amount they require the property to be insured for. This is not normally required for strata properties however contents insurance and public liability is recommended for strata properties. The date this insurance is to commence from is the earlier of completion (settlement day) or the day you move in.
We also will order our searches from Government Departments to ensure all is in order.
Pre Settlement 1 – 2 weeks prior to settlement
We arrange a suitable time with the Vendors representative and your bank for settlement. Settlement is normally a time set between 11:00am and 3:30pm.
We will send draft settlement figures to the Vendors representative in which they will confirm they are correct. Adjustments are made for the Council rates, water rates and water usage and strata levies. We obtain available funds from bank so we know how much we have to spend. We can then give you an estimate ‘shortfall’ figure being the amount you are putting in towards the purchase. When you sign your loan documents, quite often you can give your bank authority to draw on a nominated account for the shortfall. This shortfall amount must be in this account 24-48 hours before settlement and must be cleared funds. We can then direct your bank to draw all the cheques on the days of settlement. If this is not an option, a bank cheque will need to be drawn and dropped into our office on the day before settlement or into our settlement agent in the Sydney CBD.
24-48 hours prior to settlement
We will be able to provide you with the final breakdown for settlement including the exact amount you will need to put in to complete the purchase. You will also need to arrange a final inspection of the property with the agent prior to settlement to ensure all inclusions on the Contract are still at the property and that the property is in the same state and condition as when you first inspected it (subject to fair wear & tear).
Today is the big day! You do not have to attend settlement as we do this for you. All you need to concentrate on is the moving part. Once settlement has been effected, we will call you to advise. At this time you may then collect the keys to your new home from the Agent.
Following settlement you will receive a letter from us confirming settlement and the final breakdown from settlement. We will also notify your local Council, the Water Board and Owners Corporation (if applicable) of your details as the new owners.