Buying a house is a very exciting and sometimes stressful event. It is really wise to understand the process before you get started. The following information applies to residential property only. If you are purchasing property that is not residential property (ie. commercial, rural etc.) please search this site for information more specific to the type of property you are buying or give us a call to discuss further.
There are two ways of buying property:-
1. With a COOLING OFF PERIOD. In this instance, once a Real Estate Agent has confirmed your offer has been accepted by the Seller, the Agent will arrange for yourself and the Seller to sign the Contract and for you to pay a deposit of 0.25% of the purchase price. The Real Estate Agent will then “EXCHANGE” the Contracts and you will have a 5 business day cooling off period, in which time you can pull out of the Contract and only lose the 0.25% deposit you have paid. Usually during this period, you arrange:-
- any inspections of the property (ie. pest, building, strata (if applicable);
- formal finance approval
- your Conveyancer to read through the Contract and negotiate it (if necessary)
- your Conveyancer to check Council approvals etc. (if applicable)
This is a method has been used for over 20 years and is best when you want to secure a property and avoid being gazumped by the Seller if somebody else makes a better offer.
2. Without a COOLING OFF PERIOD. In this case, once your offer is accepted by the Seller, the Real Estate Agent will notify the Buyer’s and Seller’s Conveyancer of the agreement reached and this will prompt the Seller’s Conveyancer to send a Contract to the Buyer’s Conveyancer for signing. The Buyer’s Conveyancer will then ensure you have arranged:
- any inspections of the property (ie. pest, building, strata (if applicable);
- formal finance approval
- to read through the Contract and negotiate it (if necessary)
- to check Council approvals etc. (if applicable)
Once the above are satisfactory to you, you will need to pay the balance of the 10% deposit (or sometimes 5% or otherwise where negotiated) and your Conveyancer will be requested to sign a Certificate waiving your cooling off rights.