1. Offer accepted
Once your offer on a property has been accepted by the vendor (or seller), the real estate agent will prepare a ‘sales advice’ and submit a copy to us. The vendor’s lawyer will then prepare contracts and will send a copy to us to review.
In the meantime, there are a few things for you to think about:
- Do I need a pest or building report?
- Do I need a mortgage? Do I have loan pre-approval or final loan approval? Does the financier need to do a valuation on the property?
- Am I eligible for any Government grants or concessions or exemptions from transfer duty?
2. Review the contract
Once we receive your contract from the vendor’s lawyer, we will schedule an appointment with you. We will review the contract together to ensure you know everything about the property you are buying and that the terms of the contract are fair and reasonable.
3. Sign the contract
When you understand and agree to the terms of the contract, are satisfied with any pest and building reports you have ordered and have your finance in order or you have received formal loan approval for your mortgage, you can sign the contract and pay the deposit.
4. Pay the deposit
In most cases, you will need to pay a 10% deposit. Sometimes, you may be able to use a deposit bond instead of paying the deposit by cash or cheque. If required, we can attempt to negotiate a lower deposit on your behalf. Please contact us if you would like more information.
5. Exchange the contracts
Contracts can now be ‘exchanged’ which legally binds you and the vendor to the terms of the contract.
After exchange we undertake searches and enquiries on your behalf to ensure that you are receiving a good clear title to the property, free of encumbrances, outstanding Council or water rates and taxes. The searches include:
- Council land and water rates searches to ensure that any outstanding land and water rates are cleared and adjusted on settlement,
- Land tax searches to ensure the seller has paid and cleared their land tax liability on the property,
- Searches of outstanding council notices to ensure there are no work orders or other issues with your property,
- Searches to identify whether there are road widening proposals to acquire any part of your land for road construction purposes, and
- If you are purchasing a rural property, we will also check with the Local Land Services office for rates and notices.
Settlement or completion of your purchase usually takes place 42 days or 6 weeks after exchange.
From 1 July 2019, it is compulsory for settlement to take place online using the PEXA (Property Exchange Australia) platform. Our Lawyers are PEXA Certified Members.
Using PEXA means that nobody needs to physically attend settlement. We simply log in to the online workspace, along with the vendor’s solicitor and any existing or incoming mortgagee, to complete your purchase.
On settlement, you will need to pay the balance of the purchase price and any outstanding transfer duty. It is important to remember that transfer duty is paid on top of the purchase price.
After settlement the property will legally become yours, and you will receive the keys to your new home or access to your new land.