Before solicitors, conveyancers and bank representatives meet to exchange the necessary cheques and documents, here’s a few things to remember:
Have you reviewed the contract?
This step should be done before making or accepting an offer; however, as the document has legal implications, it’s essential that you do a final review before signing.
Is your deposit ready?
At the time of the exchange, you must be ready to pay a deposit. Deposits are usually calculated between 0.25% to 10% of the purchase price and are typically made by cheque or electronic funds transfer.
Have you taken note of the cooling-off period?
There is generally a cooling-off period in place for buyers. The time frame can vary from state to state and it is usually possible to reduce or extend the cooling-off period if there’s written agreement from both parties. The cooling-off period starts as soon as the contracts are exchanged. It’s important to remember that you might forgo your deposit if you choose to use your cooling-off rights and withdraw from the agreement.
Are you ready for settlement?
Settlement is the conclusion of the sale transaction and usually takes place six weeks after contracts are exchanged. At settlement, you will need to pay the seller all outstanding costs to ‘settle’ the property purchase. You can find the settlement date in your contract.
