Buying
Conveyancer to Review Contract
The first step in the process is obtaining a copy of the Contract from the Agent or the Vendor. We will then review the contract to ensure that it does not contain anything detrimental and that it is in your best interest. We also fully explain to you the possible implications of the contract. If necessary, we will endeavor to make changes to certain conditions of the contract on your behalf.
Formal Loan Approval – if applicable
We strongly recommend that you obtain unconditional loan approval before entering into a contract to purchase a property.
Building & Pest Inspection and/or Strata Inspection
We recommend that you obtain a building and pest report (for a Torrens Title dwelling) or a strata inspection report (for a Strata property) before entering into a contract to purchase a property.
We are able to organise inspections on your behalf.
Exchange of Contracts and Payment of Deposit
Contracts are drawn in duplicate so that each party holds a copy signed by the other party. The vendor signs the original and you sign the counterpart.
The deposit can vary but is usually 10% of the purchase price. This must be paid on exchange of contracts. It is usually paid to the real estate agent who holds it in trust until settlement is completed. It cannot be released without consent by both parties, and the interest that accumulates (if invested) is normally shared between you and the vendor.
When you buy a property in NSW there is usually a 5 business day cooling-off period after you exchange contracts. If you use your cooling-off rights and withdraw from the contract during this period, you will have to pay the vendor 0.25% of the purchase price. This works out to be $250 for every $100,000.00. Many contracts include a Section 66W certificate which waives the cooling off period and binds both the vendor and purchaser from exchange of contracts.
Tenancy – if more than one purchaser
You have the option to purchase the property having an ownership of either Joint Tenants or Tenants in Common. The principal differences are as follows:
Joint Tenants
The death of one joint tenant means that the surviving joint tenant automatically owns the whole of the property and the deceased interest in the property terminates immediately upon death.
Tenants in Common
Tenants in common each separately own a share of the property. Upon the death of a tenant in common the right of survivorship does not apply and the interest of the deceased tenant in common passes to his or her estate. This would require a grant of probate to deal with this asset.
Sign Loan Documentation – if applicable
Loan documents are to be signed by you in a timely fashion to ensure that settlement takes place by the due date for settlement. We are happy to provide you with legal advice in relation to the loan documents if required.
Insurance
Your lender will normally require a copy of an insurance policy. If purchasing a Torrens Title dwelling, you are to organise insurance for the full replacement value of the dwelling. Such policy should also note the interest of the lender. The commencement date of the insurance is normally the date of settlement.
Final Inspection of Property
Prior to settlement you are entitled to undertake a final inspection of the property to satisfy yourself as to its condition. This is best conducted a day before settlement to allow time to sort out any problems. This allows you to confirm that the inclusions are still there and that nothing has been damaged or changed (beyond normal wear and tear) since exchange of contracts. Your final inspection must be arranged with the agent.
Settlement and Adjustments of Outgoings
Adjustments of outgoings are undertaken towards the end of a conveyancing transaction on a pro rata basis. This is when you as purchaser pay the balance of the purchase price to the vendor. Depending on the property, outgoings would include council rates, water rates, strata levies and in some transactions land tax and rent.
Additional funds may be required from you to complete settlement. If so, such details will be provided to together with a comprehensive settlement statement listing all the costs associated with your purchase within five days of settlement.
Following settlement, you will be notified together with the agent of settlement taking place.
The first step in the process is obtaining a copy of the Contract from the Agent or the Vendor. We will then review the contract to ensure that it does not contain anything detrimental and that it is in your best interest. We also fully explain to you the possible implications of the contract. If necessary, we will endeavor to make changes to certain conditions of the contract on your behalf.
Formal Loan Approval – if applicable
We strongly recommend that you obtain unconditional loan approval before entering into a contract to purchase a property.
Building & Pest Inspection and/or Strata Inspection
We recommend that you obtain a building and pest report (for a Torrens Title dwelling) or a strata inspection report (for a Strata property) before entering into a contract to purchase a property.
We are able to organise inspections on your behalf.
Exchange of Contracts and Payment of Deposit
Contracts are drawn in duplicate so that each party holds a copy signed by the other party. The vendor signs the original and you sign the counterpart.
The deposit can vary but is usually 10% of the purchase price. This must be paid on exchange of contracts. It is usually paid to the real estate agent who holds it in trust until settlement is completed. It cannot be released without consent by both parties, and the interest that accumulates (if invested) is normally shared between you and the vendor.
When you buy a property in NSW there is usually a 5 business day cooling-off period after you exchange contracts. If you use your cooling-off rights and withdraw from the contract during this period, you will have to pay the vendor 0.25% of the purchase price. This works out to be $250 for every $100,000.00. Many contracts include a Section 66W certificate which waives the cooling off period and binds both the vendor and purchaser from exchange of contracts.
Tenancy – if more than one purchaser
You have the option to purchase the property having an ownership of either Joint Tenants or Tenants in Common. The principal differences are as follows:
Joint Tenants
The death of one joint tenant means that the surviving joint tenant automatically owns the whole of the property and the deceased interest in the property terminates immediately upon death.
Tenants in Common
Tenants in common each separately own a share of the property. Upon the death of a tenant in common the right of survivorship does not apply and the interest of the deceased tenant in common passes to his or her estate. This would require a grant of probate to deal with this asset.
Sign Loan Documentation – if applicable
Loan documents are to be signed by you in a timely fashion to ensure that settlement takes place by the due date for settlement. We are happy to provide you with legal advice in relation to the loan documents if required.
Insurance
Your lender will normally require a copy of an insurance policy. If purchasing a Torrens Title dwelling, you are to organise insurance for the full replacement value of the dwelling. Such policy should also note the interest of the lender. The commencement date of the insurance is normally the date of settlement.
Final Inspection of Property
Prior to settlement you are entitled to undertake a final inspection of the property to satisfy yourself as to its condition. This is best conducted a day before settlement to allow time to sort out any problems. This allows you to confirm that the inclusions are still there and that nothing has been damaged or changed (beyond normal wear and tear) since exchange of contracts. Your final inspection must be arranged with the agent.
Settlement and Adjustments of Outgoings
Adjustments of outgoings are undertaken towards the end of a conveyancing transaction on a pro rata basis. This is when you as purchaser pay the balance of the purchase price to the vendor. Depending on the property, outgoings would include council rates, water rates, strata levies and in some transactions land tax and rent.
Additional funds may be required from you to complete settlement. If so, such details will be provided to together with a comprehensive settlement statement listing all the costs associated with your purchase within five days of settlement.
Following settlement, you will be notified together with the agent of settlement taking place.
Disclaimer: All material contained in the pages of this website is general information only, and is provided for the purposes of alerting consumers to some of the risks, responsibilities and procedures associated with buying and selling property. The information on these pages may change from time to time and it should never be relied upon as your only source of information. It is therefore recommended that you contact our office for any specific queries that you may have.
