Making an Offer
As a buyer, making an offer can be challenging. You can give your highest offer upfront or give the smallest you can offer and prepare for upward negotiations from there. You have to be open about the pros and cons of each side.
Contract of Sale
A contract of sale is needed before a seller is allowed to put a property on the market. This contract contains the terms and conditions of the sale. This will serve as your reference.
A contract of exchange is drawn when your offer has been accepted by the seller or if you were able to purchase the property from an auction. This contract of exchange is prepared by a conveyancer, a solicitor or a settlement agent.
A deposit of 10% of the selling price is usually required once contracts are exchanged. You will hand this 10% deposit to the seller's solicitor or settlement agent. The amount will be put in a trust account.
If you want to withdraw from the contract, you can do so during the cooling-off period. This period is effective 3 to 5 working days after the contract is exchanged. During this period, you can organise strata, building and pest inspections. This cooling-off period does not apply for buyers and sellers in an auction.
A property is considered settled when the balance of the property price and other adjustments have been paid and the title and transfer of documents have been exchanged. Settlement takes place 2 to 6 weeks after contracts have been signed by yourself and the seller.
Stamp duty is a government tax paid during settlement. It is a percentage of the property's market value. The amount, however, varies according to territory or state. Ask your real estate agent about this further.
To learn more about buying and selling properties, please contact us at 9226 9222.