Purchasing real estate can be a very exciting process, however it can also be stressful for a prospective buyer. To make life easier we have outlined the buying process should you decide to purchase a property through Central Sydney Realty.
Where to start
Speak with our finance department to arrange the best loan to suit your needs.
Prepare a short list of preferred suburbs that suits your lifestyle, bearing in mind affordability and accommodation requirements. Research sales in those preferred suburbs. Inspect every property in your preferred suburb so you have a feel for the prices.
Develop a relationship with one of our professional team who specialise in your preferred area. Your Central Sydney Realty sales consultant will be able to advise you of any additional information you may need and also inform you how you can register to automatically receive notification of any new listings that hit the market.
When you find a property that suits your requirements, ask your agent to send a copy of the sale contract to you. Forward this to your solicitor or conveyancer.
If you are considering making an offer, we recommend that you contact your Central Sydney Realty sales consultant promptly, they will provide guidance if you are unsure of the process.
Signing a Contract for Sale
Once an agreement is reached on price, settlement terms and special conditions between the vendor and purchaser the sale can proceed.
Your solicitor can arrange building and pest inspections and a strata search (if applicable) to make sure you are aware of any issues that may affect your decision. Depending on which method of exchange is used, the timing of these inspections will vary. Your Solicitor or Conveyancer will give advice on this.
Take advice from your solicitor or conveyancer on the sale contract and building, pest and strata reports and, provided that you are comfortable to continue, you are now able to make an informed decision to proceed with the purchase of the property.
An exchange of contracts is the only way to buy or sell a property. The exchange of contracts happens when the purchaser and vendor each signs an identical copy of the proposed contract for the sale of land where as that land has a title.
There are two ways to exchange contracts. This will depend on the method of sale used by the agent.
5 Day Cooling Off Period
As sales agents licensed in NSW, we can only exchange sales contracts with a cooling off period. Under a five-day cooling off period, the period for withdrawal of a signed contract lasts for 5 working days and allows the purchaser or purchasers the right to rescind the Contract for Sale for any reason.
This five-day period commences upon exchange of contracts and terminates in NSW on the 5th working day at 5 pm EST. Saturdays, Sundays and public holidays are NOT business days. The vendor may extend this period by a clause in the contract or by written notice before the end of the period.
The cooling off period is created to allow purchasers time to organise inspections, reports and finance, and allow their legal representative to check over the Contract for Sale. The signing of a 5 day cooling off contract is a good way to purchase a property. This option provides full protection against:
– The vendor pulling out of the sale
– Another purchaser offering or paying more for the property
– The vendor taking a higher offer
-With this contract option the purchaser has total control and time to ensure that everything is checked out prior to committing to the purchase.
In some cases, the purchaser may not wish to sign anything without solicitor approval. If this is your decision, your solicitor will make contact with the vendor”s solicitor and then proceed with reports and study of the contract on your behalf.
However, it is important to note that until a contract is signed, the property will remain on the market and anybody wishing to make an offer can do so. It is the agents’ legal requirement to continue to present all offers to the vendor. If another party is able to sign a contract the property is then secured by that party, leaving you no option to purchase. Your solicitor is powerless to act as the contract will be considered exchanged.
Buying under a cooling off period requires monetary commitment by the purchaser. When you enter into a 5 day cooling off contract the purchaser is required to pay a 0.25% deposit, based on the sale price on the contract. The purchaser on rescission of their contract (if after the cooling off period) will forfeit the 0.25% deposit. This money is then payable directly to the vendor. The vendor has every right to recover this money as a debt.
If the contract is NOT rescinded the purchaser must pay the remaining money to the amount of the 10% deposit no later than 5pm on the 5th working day.
This means the purchaser”s solicitor has informed the purchasers of their rights and has signed a 66W certificate. A 66W certificate will waive any cooling off period and makes both parties committed to an instant, legally binding contract.
This option also applies when a purchaser is the successful bidder at an auction. A contract signed under auction conditions is ”unconditionally exchanged” and legally binding.
On settlement day it is advisable that you do a final 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 inclusions are as per the contract you signed.
We hope this information allows you to understand the process involved to purchase a property and encourage you to contact our team should you require any clarification on the above.
Disclaimer: – This information has been compiled from sources we consider reliable. However, we cannot guarantee its accuracy and interested persons should rely on their own investigations or contact their legal representatives.