Finding the right property at the right price can take a lot of time and effort. Contracts of sale are a legal document thus, it is important you understand them. Before signing a contract many purchasers will want to have the building checked and have a lawyer look at the searches and contract.
Once your offer has been accepted by the vendor, and after both parties have signed the contract, the contract is considered to be binding.
What happens next?
The vendor through the vendor’s sales agent will serve you with a “Form 1”. This is vendor statement disclosing certain matters about the property and is based on the statutory searches (State Government, local government and strata secretary etc.). It provides details such as zoning, notices from adjoining owners rebuilding works, planning and development approvals granted for the property as well as rates and taxes payable for the property.
A cooling-off period is a short period after committing to a home purchase where the purchaser can change their mind.
The cooling-off period expires at the end of the second clear business day after:
• The contract was made if the purchaser received the Form 1 prior to making the contract, or
• The Form 1 has been served on the purchaser if the purchaser received the Form 1 after making the contract. By law, a Form 1 must be served on a purchaser.
Once the cooling off period has expired and provided there are no other conditions in the contract, the purchaser is bound to the contract and must pay a deposit. However, some owners may provide the buyer with an agreement to waive the right to a cooling off period when signing the contract of sale.
Subject to Finance Clauses
Before the settlement date, you will need to contact your home loan lender and organise your finance for the home. Whether you are closing a bridging loan, using a loan portability feature or taking out another loan, your finance needs to be organised as soon as possible.
The balance of the home is due on settlement day and will usually be paid to the vendor once the lender has authorised the payment.
If you are looking to buy or sell your property and would like to find out more about your rights and options, Straits Lawyers are here to help. Simply send us an email at firstname.lastname@example.org or give us a call on 8410 9069 to arrange an appointment for an online interview.
Alternatively, if you would like to conveyance a property, Straits Lawyers are now offering online services at https://straits-lawyers.square.site/product/conveyancing-/2?cs=true.
Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.