- Finance
Before searching local property listings, you should meet with your mortgage broker and have your finance approved. This will make it much easier during the settlement process and avoid any delays in settlement because of delays in finance approval.
- Using a Buyer’s Agent
Real Estate Agents work for Vendors to help them sell their property. However, if you are engaging a Buyer’s Agent to help you locate a property or to bid on a property for you at auction, be sure to have their agreement reviewed. Know what fees, terms and conditions you are signing up for.
- Reviewing the Contract
Before bidding on a property at auction or signing the contract, we recommend you have the contract reviewed by a Licensed Conveyancer or Solicitor.
This is to ensure that the contract does not have any clauses that may be detrimental to you and so that you are aware of any conditions that you will be subject to when purchasing the property.
Some properties purchased by private treaty will have a cooling-off period of anywhere between 3 and 10 business days (this is something that your conveyancer or solicitor can negotiate for you). During this time, your solicitor will be able to negotiate with the Vendor’s solicitors and you will be able to arrange an Inspection of the property.
A cooling-off period is a set number of days after entering into the contract in which you can decide to proceed with the purchase of the property or terminate the contract. In New South Wales, this period is usually five business days long and if you decide to terminate the contract you will be liable for a termination fee to the seller (0.25% of the purchase price).
Properties purchased at auction do not have a cooling-off period. You should conduct all enquiries and investigations well before the date of auction, so you have enough time to negotiate and make a decision. You should also look into arranging a Building and Pest Inspection and/or a Strata Report prior to the auction.
Once the cooling-off period ends, you will officially enter the “post-exchange” period.
- Post-Exchange
During the post-exchange period, your solicitor/conveyancer will be making arrangements with the Vendor’s solicitors, your bank, the real estate agents and any other interested parties to make sure that settlement takes place on time.
Your representative will ask for the following details which you should provide straight away to avoid delays in the settlement process:
- Your mortgage broker’s details, including the details for your incoming mortgagee;
- A copy of the signed contract for sale.
You will need to meet with your solicitor or conveyancer or arrange an appointment with a certified Verification of Identity Agent (Australia Post or ZipID if your solicitor/conveyancer is registered). You will need to have the following documents available to be certified:
- Proof of Citizenship of Australia (Birth Certificate, Passport, Citizenship Certificate);
- If you are a Permanent Resident or are in Australia on a Visa, you will need to provide your Foreign Passport and copies of any documents form the Department of Immigration detailing your Visa conditions;
- Your Drivers’ License/Government Issued Photo Identification Card;
- Your Medicare Card;
- A utility bill.
If you are unable to provide any of the documents, you can speak with your solicitor/conveyancer about the options available to you. You should also notify your solicitor/conveyancer if you are a Permanent Resident and have recently travelled out of Australia.
From this stage, there is very little contact that will need to take place between you and your conveyancer until the days leading up to settlement.
Rest assured, radio silence does not mean that your matter is not being worked on. During this time, your solicitor/conveyancer is planning for settlement to take place, negotiating with the Vendor’s solicitors and your bank to ensure that all takes place smoothly.
You will not need to meet with the solicitor/conveyancer thereafter, as the only further contact made by your representatives will be the long-awaited phone-call that you now own the property. You will then need to contact the real estate agent to collect the keys to the property.
You should engage a conveyancer/solicitor who has expertise in this area so that you do not run into any situations where your questions remain unanswered.
- Settlement
Settlement is a transaction that takes place at a venue nominated between parties. You will not need to attend.
Once the property has settled, the Certificate of Title is handed to your mortgagee. If there is no mortgage on the property, the Certificate of Title will be handed to your solicitor/conveyancer on settlement. If your solicitor has safe-custody facilities, you may want to think about storing the Certificate of Title with your solicitor. If not, make sure you store the Certificate of Title somewhere safe.