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Signing the Contract with a Cooling Off Period

Some Real Estate agents will ask that you sign the Contract in their office and pay a 0.25% deposit of the purchase price. The agent will then arrange for the owners of the property to sign the Contract and they will exchange contracts on your behalf. Once the agent exchanges the Contract they will date the Contract. Once the Contract has been dated, you will have five (5) business days in which to carry out all of the necessary Pest and Building Inspections on the property together with obtaining an unconditional loan approval from your lender.

If, when these inspections are carried out and defects are found in the property such as termite damage or structural problems with the property or if you are unsuccessful in obtaining your finance, you will then need to rescind the Contract for Sale by 5.00pm on the fifth (5th) business day in which you will forfeit the 0.25% deposit that you have paid to the agent.

Signing the Contract without a Cooling Off Period

If the Real Estate agent does not insist on signing the Contract in their office, you are best to elect to exchange Contracts without a Cooling Off period.

If you elect not to have a Cooling Off period, this entails you in obtaining your unconditional loan approval, your Pest and Building Inspections and if you are purchasing a unit we also recommend that you obtain a Strata Inspection Report. The Owner´s Solicitor will also forward a copy of the Contract for Sale to our office for checking by us. We will check the title and advise you of any registered easements or covenants affecting the property. The contract will contain a zoning certificate. This is necessary to ensure that the property may be used for residential purposes. If you wish to use the property for a purpose other than a residence you must let us know so that we can check that the Council will allow that use. The contract will also contain a sewer diagram. We will ask you to check that no building is erected over the sewer. The position of the sewer may affect plans you may have for renovations/extensions or for a pool.

Once all of your property inspections have been carried out and are satisfactory and you have obtaining your unconditional loan approval from your lender, we will then arrange for you to sign the Contract and our Solicitor will need to sign Section 66W Certificate which will waive your Cooling off rights under the Contract. At this time, we then send the signed Contract, the signed Section 66W Certificate and your cheque in favour of the agent for the full 10% deposit (or an agreed amount by the parties) whereupon the owner´s Solicitor will exchange the contracts. Once contracts are exchanged this way, the Contract then becomes binding on all parties.

Survey and Local Government Ordnances

It may be necessary to order a recent survey of the property to identify the property described in the contract and to ensure that the buildings and fences are located correctly. The cost of this is from $440.00 depending on the size and nature of the property. If the survey discloses any breach of Local Government Ordinances, or if you think the building may not comply with those ordinances, we may have to obtain a building certificate from the Council to put the matter beyond doubt. This cost of this is from $210.00.

Finance

Our property team has strategic alliances with financiers and brokers who can assist in obtaining a loan or short term bridging finance.

If you are obtaining finance to complete the purchase then you should obtain a letter of unconditional approval from the lender setting out the terms and conditions of the loan. If you provide us with a copy of the letter of approval we can advise you on the conditions imposed by the lender and enable us to help you satisfy those conditions.

Pest, Building & Strata Reports

When buying a home, it is advisable to obtain a pest and building report to make sure that the property is not affected in any way by any termite, white ant or borer activity or has any structural defects. If you are purchasing a strata unit we will need to obtain a strata report to make sure that the strata scheme is well managed. We can arrange these reports for you. We deal with experts in this field that charge us a competitive fee.