Guide to your property purchase
1. Speak with your bank or mortgage broker to determine your capacity and the best loan to suit your needs then prepare a short list of needs and wants that will give you the lifestyle you are looking for. Keep in mind affordability and accommodation requirements.
2. Inspect a few properties in the area and attend some auctions. This will give you a good idea of market value. Find comparable sales in the area or building using your own resources as well as resources given from the selling agent.
3. Form a relationship with the LAING agent specialising in your preferred area. The agent will be able to offer additional advice and also alert you to new listings before they reach the market.
4. When you find a property that suits your requirements, request a copy of the sale contract from the selling agent and ask them to send it to your solicitor/conveyancer for review.
5. We recommend that you arrange a building and pest inspection or strata search to make you aware of any major defects and pest concerns eg: white ant, termites.
6. You are now in a position to make an offer on the property to your agent following your solicitors or conveyancers advice on the sale contract and taking the building and pest reports into consideration. If you are intending to buy at auction, we recommend you read the Office of Fair Trading’s “Bidder’s Guide” prior to attending.
7. When terms and price has been finalised you will be required to sign the sale contract and pay a 10% deposit. Your deposit will be held in trust in an interest bearing account until settlement. Interest is normally equally divided between you and the vendor. The vendor will sign their sale contract and the solicitor/conveyancer will exchange the contracts.
8. On the day of settlement specified in your contract, your solicitor/conveyancer may request that you have a pre-settlement inspection before settlement takes place. This is to ensure that the property is in the same condition as when you last inspected it and that all the inclusions are as per the contract you signed.
Definitions:
Exchange: A formal legal process that creates a binding contract for the sale of real property on agreed terms. The vendor and purchaser each sign a copy of the sale contract and then exchange these documents, after which time the contract becomes legally binding on the parties. The parties are then bound to proceed to settlement, subject to any cooling off period that may apply. A deposit is usually also paid by the purchaser to the vendor during the exchange process. Any party that unilaterally declines to proceed to settlement may forfeit deposit monies or be subject to a damages claim
Settlement: The date on which a contract of sale is finalised and final payment is made