Our 7-step checklist will assist you to understand the process involved in buying a property.
STEP 1 – Before signing
- Once you have selected a property and negotiated a price, contact us immediately and we will arrange for a copy of the contract to be forwarded to our office. This will enable us to advise you on the terms of the contract.
- No legal obligations to buy or sell the property will exist until the contracts have been signed and exchanged.
- The real estate agent may suggest that you exchange contracts quickly to secure the property. We do not recommend this if we have not perused the contract prior to exchange. If you authorise the agent to exchange the contract, you will have five business days in which to obtain finance and investigate the condition of the property. This is called the “cooling off period”. If you choose not to proceed within this period, you will lose 0.25% of the full purchase price.
STEP 2 – Check the quality
- Pest and Building reports should be undertaken prior to exchange of the contract. If the reports are unsatisfactory you may choose not to enter into the contract. You may also wish to obtain a surveyor’s report. We can advise you on the pre-exchange reports which are suitable to your situation.
- The cooling-off period of five business days is not always sufficient to arrange and obtain finance approval. We suggest you speak to your bank, financier or mortgage broker prior to signing a contract. That way, formal loan approval can be obtained prior to the expiration of the cooling off period.
STEP 3 – Exchange of contracts
- Once the contract is signed by you and exchanged with the seller, the contract becomes binding.
- Completion of your purchase takes approximately six weeks from the exchange date. Prior to the completion date, you will need to pay stamp duty, unless you qualify for an exemption.
STEP 4 – After exchange
- There are a number of things you will need to do following exchange, including
- insurance over the property (not for vacant land or strata units) should be arranged prior to settlement so the property is covered from the date you or your tenants move in.
- signing of loan and mortgage documents to ensure loan funds are available on the date of settlement. You may be required to sign these in front of your solicitor.
- apply for any benefits under the First Home Owners Grant scheme (if applicable).
STEP 5 – Preparing for settlement
- We will order all appropriate property enquiries.
- We will arrange for the adjustment of rates and levies and inform you or your lender of the cheques to be drawn to complete the purchase.
STEP 6 – Final Inspection
- Re-inspect the property immediately prior to the expected settlement to ensure that all of the inclusions are in the premises and the property has not been damaged.
STEP 7 – Settlement
- We will attend settlement and complete the transfer of the title to your name (or your lender if applicable).
- The real estate agent will be notified that the sale has been completed and the keys to the property will be available for collection.
The above checklist is merely a guide and does not cover every situation which may arise in a transaction. Please contact our property team on 4929 3995 if you wish to discuss any aspect of your proposed purchase with us.