The decision to purchase property can seem extremely overwhelming especially if it’s your first time! With so many moving parts it can be difficult to keep a track of what is required and what comes next. There are some key dates and terms that you will hear a lot throughout the process. The five key dates discussed below should help to keep your eyes on the path to home ownership!
Offer & Acceptance
You have made your offer and it has been accepted – It is time to give us a call! The agent will ask you to provide your Lawyer’s details so that a Sales Advice can be sent, and the process can get underway.
Signing the Contract
Once you have reviewed the Contract together with your Lawyer and finalised any terms you will then sign a copy of the Contract. Whilst signing on the dotted line seems final, you will not be obligated to proceed with the purchase until the Contract is “Exchanged”.
Exchange
Exchange of Contracts is the formal process of creating a contractual relationship between the Vendor and Purchaser. Each party signs a separate counterpart contract and the Lawyer’s will “exchange” the signed Contracts with each other. The date this occurs is then marked on the front page. Following the Exchange of Contracts you will become legally bound by the terms of the Contract. Failure to comply with the Contract can have serious consequences.
Cooling Off Period
A cooling off period is a set time whereby the purchaser can change their mind and rescind from the purchase with a reduced penalty of 0.25% of the purchase price. In NSW the standard cooling off period is the 5th business day after the date of exchange.
The cooling off period can in most cases be varied by agreement or waived all together. When you review the contract with your Lawyer they will discuss your specific circumstances to help you make a decision that is most suited to your situation.
Final Inspection
Before settlement takes place it is extremely important that you undertake a final inspection of the property. This will be your last opportunity to ensure that the property is in the same condition it was at the time you exchanged Contracts. Should you find damage to or issues with the property during your inspection it is imperative to advise your Lawyer immediately so they can advise the Vendor’s Lawyer.
Settlement
You are approaching the finish line…. Settlement Day. The property will legally be transferred from the Vendor to you the Purchaser. On settlement the purchase price less any deposit paid is required as well as any other costs such as Stamp Duty, Legal and Registration Fees.
If you need any assistance with your purchase or property matter please give us a call on 4944 3322.
