I am ready to buy, what do I do first?
The first thing you should do is contact One Title e-Conveyancing.
One Title e-Conveyancing can guide you through the minefield that is the process of buying real estate. You will need to know what you can and cannot do when dealing with an Estate Agent and you should be aware of your cooling off rights before you enter into a contract to purchase property.
You should also be aware of all the costs involved before you commit yourself to anything so that you have worked out a budget and know exactly what you can afford before you start to negotiate a price with the agent.
Having decided to buy a property it is imperative for a purchaser to make early steps to obtain approval in principle for finance should it be required. If this is done, the finance institution only needs to check the desirability of the security that you can offer them when the choice of house is made.
Whilst final approval may not be given until such time as a property is chosen, many lending institutions have the faculty to issue preliminary approval up to a certain figure, based on your capacity for repayment.
Choosing what to buy
- Always ask for the copy of the contract for sale from the agent.
- Ask One Title e-Conveyancing to look over the contract for you at no obligation.
- Arrange any necessary building, pest and strata reports.
- Inform your bank that you have found a property and forward them the front of the contract in order to carry out a valuation on the property if required.
- Make an offer.
- Contact your bank and ask the progress of your loan.
- Once your loan is unconditionally approved and you have been notified in writing by your bank you may then proceed to exchange contracts.
- Contracts can be exchanged either with a cooling off or without a cooling off period. Refer to our FAQ section.
Contract for sale
The law provides that the Real Estate Agent must have available at all times a complete contract for the sale of any residential property. A copy of the contract is to be made available for any prospective purchaser to look and to get legal advice on.
Not all things that affect the sale will be written into the contract. There are several matters enshrined in legislation that affect the contract and it is best that you have One Title e-Conveyancing explain the effect of the contract you sign and commit yourself to it.
Making an offer
Making an offer on a residential property is a significant step. Before submitting your offer amount to the agent or vendor (seller), it makes good sense to be well prepared for what might follow.
- Obtain a copy of the sale contract as soon as possible and have it examined by One Title e-Conveyancing. Doing this prior to making an offer will save time if you need to move things along quickly.
- If you offer is accepted, be ready to sign the sale contract and proceed through with the exchange process.
- Do not sign or exchange the contract of sale until you have discussed it with One Title e-Conveyancing.
- Prior to the exchange of the contracts, the vendor is free to negotiate with other purchasers for a higher offer.
Gazumping occurs when you have a verbal agreement with an agent or seller to buy a property at an agreed price but the property is not sold to you in the end. This usually happens when the vendor (the seller) has decided to sell the property to someone else usually for a higher amount.
Exchanging contracts with or without a cooling off period
Contracts are signed by all parties involved in the transaction and when the seller and buyer have both agreed on a price and then conditions of the sale the contracts are exchanged and dated and the deposit paid by the buyer.
Until such time as the contracts are exchanged either party can withdraw from the transaction. It is only once the contracts are exchanged that the parties are bound to proceed and in case of the buyer having a cooling off period the buyer is not bound until the cooling off period expires.
Every contract for the sale of residential property (less than 2.5 hectares) has a cooling off period of five working days. The cooling off period ends at 5pm on the fifth working day.
If the purchaser finds that for any reason he or she does not want to proceed with the purchase they can rescind the contract within the five day period. If they do rescind the contract they forfeit to the vendor 0.25% of the sale price.
The purchaser can waive the cooling off period by having the contract explained and a certificate signed by One Title e-Conveyancing and handed to the seller’s representative. The certificate is commonly called ‘Section 66W Certificate’
The cooling off period can be shortened or extended by the use of the Section 66W certificate.
There is no cooling off period if the property is sold at a public auction or on the same day as the property was listed for auction sale.