tabby

Please help , I live in QLD but am in the process of offering in NSW on a place
I am being told by the realestate agent that there is no signing of contracts
before pest or bank approval is this correct ???

Any info appreciate

Martin

Sandra

If the realestate agent is working for you you should get some decent help, anyway you should make clean pest inspection and subject to finance part of your conditions of offer. And ensure you have plenty of time to get everything done in the time. No contracts need to be exchanged before this point. You may be asked for a deposit - that is what getting the subject to conditions are about you can still get your money back if the place is white ant infested or your mortgage drops through.

Depending on the property you can put more of these conditions in - like checking a roof or the swimming pool or any details about the house at all that you want to check out to be sure first.

Have fun

Have fun

Bobcat

This may help you?

good luck

Exchanging contracts and paying a deposit in NSW

Exchanging sale contracts is the legal part of buying a home. Before exchange, the agreement is usually just verbal and not binding. Up until you exchange contracts either you or the vendor have the right to change your minds.

After you have discussed the contract with your solicitor or licensed conveyancer and all the proper inquiries have been made, you will be ready to exchange contracts. There will be two copies of the sale contract: one for you and one for the vendor. You each sign one copy before they are swapped or ‘exchanged’. This can be done by hand or post and is usually arranged by your solicitor, conveyancer or the agent. If the agent is handling the exchange, you must expressly authorise them to do so.

At the time of the exchange you will be required to pay a deposit, usually 10% of the purchase price. Following exchange, you have a financial interest in the property so it’s wise to get it insured.

Note: A contract has not been made and is not legally binding before the exchange of contracts and the payment of a 10% deposit.


Cooling-off period

When you buy a property in NSW there is a five business-day cooling-off period after you exchange contracts. During this period you have the option to get out of the contract as long as you give written notice. The cooling-off period starts as soon as you exchange and ends at 5pm on the fifth business day.

A cooling-off period does not apply if you buy a property at auction or exchange contracts on the same day as the auction after it is passed in.

You can waive the cooling-off period by giving the seller a ‘66W certificate’. This is a certificate that complies with Section 66W of the Conveyancing Act 1919. The certificate needs to be signed by your solicitor or your settlement agent/conveyancor

Bobcat

Here's a wee bit more general info for you; I'm not licensed to operate in NSW so any major queries you have you should perhaps run by your lawyer or whomever you chose to act on your behalf at settlement as they should be well versed in how matters work over there :-

Hope everything works out in your favour ............. beware of shonky operators as I'm sure they have them over in NSW like we do here in Perth?

Cooling Off Spell

If you use your cooling-off rights and withdraw from the contract during the five business-day period, you will have to pay the seller 0.25% of the purchase price. This works out to be $250 for every $100,000.

Sometimes, there are more buyers looking for homes than there are properties on the market. This is called a sellers’ market. In this case, you may want to organise a quick contract exchange. This way you can reduce the possibility of someone beating your offer and get your building and pest inspections done during the cooling-off period. You will still be able to back out if there is a problem. However, it is important to have the contract checked by your solicitor or conveyancer before you sign it.

It is possible to waive, reduce or extend the cooling-off period with the consent of the seller. If your solicitor or conveyancer has examined certificates from the appropriate authorities, a pest and building inspection has been done and your finance has been approved, then deciding to waive the cooling-off period could make your offer more attractive to the seller.


Settlement

Settlement usually takes place about six weeks after contracts are exchanged. This is when you become the legal owner of the property. The balance of the purchase price and other adjustments are paid on this date.

Buying at auction

Buying at auction can be a nerve-racking experience so it’s a good idea to familiarise yourself with the process first. Go to our page on auctions for more information. Once you know what’s involved, attend an auction or two as a spectator before you make your first bid.

tabby

Thanks Guys you have been a great help

Martin