Purchasing Property FAQs
Buying property in Australia can be daunting, especially for first-timers. This FAQ outlines what happens once your offer is accepted, your solicitor’s role, and common mistakes to avoid. Get clarity on cooling-off periods, contract conditions, and how to make the process as smooth as possible.
When do I pay the deposit?
The Contract calls for a deposit to be paid which is equal to 10% of the purchase price. This can of course be negotiated and you should speak with your Solicitor/Conveyancer about this should you not be in a position to pay a full 10% deposit. The deposit can be paid at any time before exchange of Contracts. This is seen as a "sign of good faith" but is not binding until the exchange of Contracts.
The vendor wants me to waive the cooling off period, what does this mean?
In NSW, a purchaser is entitled to 5 business days to "cool off" following the signing and exchange of Contracts. It is not uncommon for a Vendor to require a Purchaser to waive their rights under the cooling off period. This will mean that you will be locked into the Contract straight away and you should discuss this aspect with your Solicitor/Conveyancer.
Contracts have exchanged. What does this mean?
Your Solicitor/Conveyancer by now will have discussed with you the contents of the Contract. They will ensure that you have formal approval of finance in place, the deposit is paid, and that any other concerns you had have been addressed. This means that both parties will be legally bound by the terms of the Contract. You will notice that the "SOLD" sticker is now placed over the "For Sale" sign.
How long is the settlement period and what happens?
Each contract varies; however, the general time frame is 6weeks from the date of exchange. This time frame can be shortened if all parties are in agreement. In this time, your Solicitor/Conveyancer will complete all relevant statutory searches and enquiries and ensure that all loan conditions have been satisfied. They will make any necessary adjustments for local Council rates, water usage and other outgoings. As the date of settlement approaches, it will be necessary for you to ensure that you have home and contents insurance in place. You will also be required to carry out a final inspection of the property, and this can be arranged through the Real Estate Agent. You should note the condition of the property as at the date of exchange of Contracts. If there is any damage other than fair wear and tear, then you should immediately advise your Solicitor/Conveyancer prior to settlement.
Congratulations! The date of settlement is the day that you become the legal owner of the property and the balance of the purchase price is paid to the seller. Once settlement has been completed, you will be able to collect the keys to the property from the selling Agent and move into your new home.
