muditha

Hi,

I'm going to buy a unit(Apartment, in NSW). I already given an offer and offer has been accepted by the owner after several negotiations. Now owner's solicitor has sent documents to my solicitor and my solicitor will look at them on Monday. The only things that has been done upto today is,
-offer accepted
-Contract sent to my solicitor(will review on Monday by Solicitor)

I would rather prefer the experience people would give a guide about what should i do next till the purchase complete ? When do i need to order Strata Reports etc ?

Thanks in advance.

Regards,

Muditha

JAMFC

Get on to your mortgage broker ASAP to get your loan application happening. The banks can take a fair while to approve loans so you don't want to run out of time with your finance clause.
If you have a building & pest clause get that inspection organised.
Do you have some kind of clause regarding strata reports - how long do you have to back out if it's unfavourable?

Good luck!

Craig Vaughan

In NSW you do not exchange until you have finance approval and strata reports done. That is the safest thing. The alternative is you do exchange but subject to the cooling off period, but this is generally not enough time to arrange the full approval.

So best thing you can do is instruct your solicitor not to exchange, and yes, get on to the financing straight away.

Brisbane bound

Sounds daft but you have to get it insured straight away. It shocked us when we bought our house. The sellers were still living in it and obviously had their own house insurance but that doesn't apply over here when buying and selling. We bought ours on over a weekend, accidentally found out that we had to insure it on the Wednesday, so did it immediately and then a big cyclone hit a few days later. We had to claim for the damage on our insurance on the new house (that we weren't yet living in because the vendors were still there) and the vendors did the same with their prospective new house that was also damaged. All very peculiar. This is in Qld but assume it's the same in NSW.

Craig Vaughan

In NSW the risk does not pass until settlement. Different to QLD where the contract states that Risk passes 5pm next business day after contract signed.

muditha

Thanks everybody.

muditha

So it means, when the bank approve the loan, then only contract is exchanged ?

JAMFC

Blimey, I'm buying in NSW next time!

We've got a contract in on a place in QLD at the moment but the vendors will not agree to any finance clause (want cash unconditional) and we wont agree to not having a clause. If we sign on their terms and then get knocked back on the finance we will have to pay the agent's commission (about $15K) and then any shortfall between the price they eventually manage to sell at, plus the agent's commission for selling it the 2nd time around! So effectively they could sell to a mate for $200K less than our offer and we'd have to make up the $200K, plus the 2 lots of commissions!! This is just like buying at auction - gotta be sure you've got your finance sorted. Can get a pre-approval but still not guaranteed.
Madness.....

Beoz

Probably unlikely in NSW .... Flood maybe