Contract Review
When you’re buying property and you have found a suitable place the first step is to have Penny Fraser Conveyancing review the contract for you.
Please email us a copy of the contract for review and we can advise you of the contract’s terms and whether there are any amendments required to the contract prior to you paying a deposit or signing the contract.
Finance approval
Before exchange of contracts we recommend that you obtain unconditional approval of your finance from your lender. Your lender will obtain a valuation of the property before providing unconditional finance approval. This can take up to 5 business days.
Property inspections
Prior to exchanging contracts we recommend that you obtain a pest and building inspection of the property, or if buying a unit or townhouse, obtaining a strata inspection report. We can obtain these inspections on your behalf (additional fees apply).
Exchange of Contracts
Exchange of contracts is when you sign one copy of the contract and the vendor/seller signs a second copy of the contract. You as purchaser usually pay a deposit of 10% of the purchase price at the time of exchange. Contracts are then checked that they are identical, then dated. This then legally binds both parties to the Contract. The vendor’s conveyancer will hold your signed contract and Penny Fraser Conveyancing will hold the vendor’s signed contract.
Cooling off period
Contracts can be exchanged either with or without a cooling off period. The standard form of Contract for Sale includes a 5 business day cooling off period from the date of exchange of contracts. The cooling off period is for the benefit of the purchaser only. The vendor is locked into selling the property to the purchaser but the purchaser can rescind the contract under the cooling off period if you decide not to proceed with the purchase of the property.
If you do pull out of the contract then you will forfeit 0.25% of the purchase price to vendor.
No Cooling off period
Contracts can also be exchanged without a cooling off period. The vendor can require that the purchaser provide what is known as a Section 66W Certificate signed by Penny Fraser Conveyancing waiving the cooling off period on the purchaser’s behalf. This then means that the purchaser is legally bound by the contract from the date of exchange of contracts.
Auctions
If a property is sold at auction or contracts are exchanged on the same day as the auction then there is no cooling off period and both parties are legally bound by the contract.
After exchange
Once contracts are exchanged Penny Fraser Conveyancing will prepare the Transfer document which legally transfers the ownership of the property to you at settlement. We will liaise with your lender (if required) to advise your lender that you have purchased the property and request that they prepare your loan documentation in readiness for settlement. Prior to settlement we will provide you with a settlement statement outlining the settlement adjustments (such as council and water rates, strata levies) and will arrange for your lender to attend settlement.
Stamp duty
As purchaser it is your responsibility to pay stamp duty on the purchase price. Payment of stamp duty is due either at settlement or within three months from the date of exchange of contracts, whichever is the earliest. The Office of State Revenue may impose penalties for late payment of stamp duty. For further information please go to http://www.osr.nsw.gov.au. We can attend to payment of stamp duty on your behalf and will discuss this with you during the settlement process.
Government grants
If you are entitled to a Government grant we can assist you with your application.
For further information please go to http://www.osr.nsw.gov.au.
Settlement
Settlement is the day that ownership of the property is legally transferred to the purchaser. Settlement usually takes place within six weeks from the date of exchange of contracts. We will arrange for all parties to attend settlement and we will attend on your behalf – you do not need to attend settlement.
At settlement the title deeds for the property will be handed over to the purchaser’s lender (if there is a mortgage) or Penny Fraser Conveyancing (if there is no mortgage) in exchange for payment of the balance of the purchase price to the vendor.
You are entitled to one inspection of the property prior to settlement. This is arranged between the parties and the Real Estate Agent.
We will telephone you and notify the Real Estate Agent once settlement has taken place and you can collect keys for the property from the Real Estate Agent.
Please telephone us on 0416 349 161 to discuss your purchase today.