SPEAK WITH A CONVEYANCING EXPERT IN SYDNEY

Before proceeding with the exchange of contracts or the end of any cooling-off period, there are three key areas we will review and discuss with you to help safeguard your purchase.

Finance

If you require a loan to purchase the property, you will need to formally apply through your bank or mortgage broker and secure unconditional loan approval before committing to the contract.

State and condition of the property

When purchasing a property, you are buying it “as is”, meaning any existing defects or structural issues become your responsibility after settlement.

To uncover any potential problems, a range of property inspections and reports may be required. The most common include pest and building inspections for standalone properties and strata inspection reports for apartments and townhouses. Depending on the nature of the property, we may also recommend survey reports, building certificates, and outstanding orders searches. Additionally, we can check Council records to verify whether any existing structures have the proper approvals and certifications.

Contract for sale

We will meet with you to discuss the contract. Not all contracts are the same, and a thorough legal review is essential to ensure your rights and interests are fully protected. When reviewing the contract for sale, we will examine key details such as:

• The items that are included as part of the purchase price. These may include curtains, air conditioning units and other items agreed upon
• The deposited plan showing the location and size of the land and any restrictions, easements or covenants that may apply
• If the property is strata title, we will also review the restrictions applying to the common property and the strata by laws which set out the rules that must be followed
• The zoning certificate issued by the local Council detailing how the land can be used and any restrictions on development
• The sewer diagram showing the location of the sewer main
• If you are buying the property with someone else, we will also discuss with you the type of ownership you will have
• We will also confirm with you the stamp duty payable and whether you are eligible for any exemptions or grants.

The exchange of contracts is an important stage in the property purchase process, marking the point where a legally binding agreement is formed between you and the vendor.

Until contracts are exchanged, the vendor is free to accept another offer and sell the property to someone else. Once the exchange takes place, both parties are committed to the terms of the contract.

There are two main ways contracts can be exchanged:

Option 1: Exchange of contracts by the real estate agent

You sign the contract with the real estate agent at their office and pay a holding deposit of 0.25% of the purchase price. In most cases this happens shortly after your offer is accepted.

Once contracts have exchanged, the vendor cannot sell the property to any other party. You as the purchaser, however, have a 5 business day cooling-off period. This means you can pull out of the contract for any reason. If you do pull out of the contract, the 0.25% deposit you have paid will be forfeited to the vendor.

During the cooling-off period you will finalise the pre-purchase enquiries outlined in Step 1 above.

Option 2: Exchange of contracts by the vendor’s solicitor

You discuss and sign the contract with your lawyer or conveyancer at our office and we will send the contract to the vendor’s solicitor for exchange.

In most cases, exchange of contracts will only take place when you have conducted all pre-purchase enquiries as outlined in Step 1 and are ready to proceed without having a cooling-off period.

Once contracts have been exchanged, you will need to sign and return your mortgage documents to your lender. It is important to complete this step promptly to avoid any delays leading up to settlement.

As part of our process, we will liaise with relevant government authorities, including the Local Council, Water Authority, and Roads and Maritime Services, as well as the Owners Corporation (if applicable). This ensures there are no outstanding rates, levies, or issues that could impact the property.

Before settlement, you will also conduct a final inspection of the property to confirm that it remains in the same condition as when the contract was signed.

Settlement, also known as completion, is the final stage of your property purchase. On this day, the remaining balance of the purchase price is paid, legal ownership is transferred, and you gain possession of the property.

Our team will coordinate with your lender and provide you with a breakdown of the total amount required for settlement. This will cover your share of rates and levies, stamp duty, and our legal fees.

Once settlement is finalised, the property title will be transferred into your name, and any applicable mortgages will be registered. We will also notify the Local Council, Water Authority, and Valuer General to update ownership records.

After settlement is completed, we will inform both you and the real estate agent. Once the agent receives confirmation, you can collect the keys and officially take ownership of your new property.