HOW IT ALL WORKS
We would advise to use a solicitor or conveyancer for your legal paperwork when purchasing property, or you could attempt to do it yourself. I recommend that you employ experienced people when buying property, and with competition at an all time high in this area of work, prices are very reasonable:
Exchange Contracts:
An enforceable contract comes into existence on exchange so it is important that you have completed satisfactorily all necessary inspections and formally arranged finance before you exchange.
Pay Deposit:
On exchange you will have to pay the deposit to the sellers agent for them to hold in their trust account until settlement. The amount specified in the contract is typically 10 percent. Do not be afraid to ask your legal representative to negotiate a smaller deposit if need be.
Cooling off period:
In some circumstances, you may be entitled to a 5 day business days cooling off period. This means if you change your mind for any reason (e.g. bad pest and building report), you can cancel the contract, forfeiting a small portion of your deposit. If you buy under the fall of the hammer at auction there is no cooling off period.
Pay Stamp Duty:
You will be required to pay stamp duty on the contract of sale and the mortgage. An example; if you purchase a property for $350,000 your stamp duty equates to $11,240.00 and they call this 'the land of milk and honey'.
Legal searches and execution of mortgage;
After you exchange contracts, your solicitor will arrange for legal searches to be carried out. These searches ensure that you will get good title to the property.
Organise Insurance:
After settlement, the responsibility of insurance is yours.
Final Inspection:
Before settlement, do one last check of the property to ensure everything is in order. Always check for any damages that weren't there at the time of purchase and always cross-check with the inclusions on the signed contract that these are still in the property.
Settlement:
This is the final step to obtaining ownership of your new home. You will receive keys to the house and are free to move in anytime upon the solicitors' confirmation. This procedure is based on laws and practice in NSW. The procedure in other states may vary.
For more information on the process or if you have any queries and need some guidance, please contact our team today on 02 9960 1066 or enquiries@pkproperty.com.au.