Offer and Acceptance
Once a price has been agreed, the buyer will then pay 25% of that price as the “holding deposit”. This begins what is referred to as the “cooling off” period, usually 5 days.
During this cooling off period period the buyer should be completing their due diligence i.e. Pest and building report amongst other enquiries.
Exchange
At the end of the cooling off period the buyer and seller exchange required contracts. Also, at this time the buyer pays the balance of the agreed deposit to the agent. At this point the contracts are “unconditionally exchanged”. A settlement date is then set usually 6-8 weeks from exchange date.
The Agent might be putting a sold sticker on the sign board at this time. Both parties are now committed to completing the sale. It is rare that a sale doesn’t proceed once it gets to this point.
Interim Period
Between exchange & settlement, this period allows the buyer some time to ensure their finance is in order by the settlement date. Solicitors/Conveyancers also need to be liaising with any financial institution for “payout” figures. Discharge documents need to be prepared to make sure everything goes smoothly on settlement date. Adjustments need to be calculated for council and water rates.
Pre-settlement Inspection
This usually take place on the day prior to settlement. The idea of this is to ensure that anything is included in the contract is still in the property. The sales agent will conduct this inspection with the buyers.
Settlement Day
Both solicitors and any banks will meet and exchange documents and bank cheque’s to complete the sale. The agent will release the keys to the buyer after confirmation of settlement from the solicitor. The agent ill also be asked to account to the vendor for the balance of the deposit less the agreed commission and any other costs.
Michael & Steve would welcome the opportunity to discuss this process with you if you have any questions.
Michael – 0419 295 661 | sales@arnoldproperty.com.au
Steve – (02) 4969 2600 | mail@arnoldproperty.com.au
