Purchaser Timeline
From Contract of Sale to Settlement:
So you’ve submitted an offer and the vendors have accepted. What an exciting time!
Not sure what to expect when buying a property? Or are you wondering if what is happening is normal? Below is a guide for what you can expect when navigating the purchasing journey!
Offer Accepted
Your offer has been accepted
1
Contracts Signed
Contract of Sale signed by you then the vendor
2
Deposit Paid
Deposit paid by you into our Trust Account (24 to 48 hours, depending on bank)
3
Contracts Exchanged
Contracts exchanged to both your and the vendors conveyancers (same day as deposit receipted)
4
Cooling Off
Cooling off period starts the next business day after contracts are exchanged and ends 5pm on the 4th
business day after that
5
Inspections
Inspections are ordered. They are paid for by you – most often it is a building & pest inspection but could include
electrical/gas, plumbing, pool and air conditioning, this is usually dependent upon what comes of the
building inspection
6
Inspection Reports
Your offer is subject to what can be seen by the naked eye including minor defects.
If something diabolical comes of any of the ordered inspections the following usually applies to negotiate to proceed with the transaction (must be completed within 10 working days)
• Repair/replace the problem/defect
• Rebate the cost of the above at settlement (when you receive the money, which in essence is a price reduction)
• Rescind the contract (if you can’t agree to a solution to move forward with the transaction)
If something diabolical comes of any of the ordered inspections the following usually applies to negotiate to proceed with the transaction (must be completed within 10 working days)
• Repair/replace the problem/defect
• Rebate the cost of the above at settlement (when you receive the money, which in essence is a price reduction)
• Rescind the contract (if you can’t agree to a solution to move forward with the transaction)
7
Finance Approval
A date will be on your contract of sale specifying this if you are not a cash buyer.
Even if you have a letter from the bank stating “Approval in Principle” for the amount you have agreed upon. This is commonly referred to as “Pre Approval”.
This means you have been approved with the capacity to borrow that amount but not necessarily on that property.
The bank or recognised financial institution will conduct a CMA to see if the property stacks up to value.
Sometimes if it is borderline they will order a registered valuer to go through (at their expense).
This is to protect the banks investment in case they have to foreclose in the future and recover their money if the borrower defaults.
Finance approval usually takes 3-4 weeks
Even if you have a letter from the bank stating “Approval in Principle” for the amount you have agreed upon. This is commonly referred to as “Pre Approval”.
This means you have been approved with the capacity to borrow that amount but not necessarily on that property.
The bank or recognised financial institution will conduct a CMA to see if the property stacks up to value.
Sometimes if it is borderline they will order a registered valuer to go through (at their expense).
This is to protect the banks investment in case they have to foreclose in the future and recover their money if the borrower defaults.
Finance approval usually takes 3-4 weeks
8
Unconditional
Unconditional means that, all inspections and outcomes have been met and agreed upon and that finance has been approved.
You cannot rescind the contract at this point without penalty
You cannot rescind the contract at this point without penalty
9
Pre-Settlement Inspection
This occurs usually the day before settlement to ensure that any works that were to be done have been, and the property is still in the condition that it was when your offer was accepted.
10
Key Exchange
All the keys are handed into us prior to settlement.
It is also good practice for the vendor to leave any information and instruction manuals for you in the top drawer in the kitchen to help the you transition into your new home.
It is also good practice for the vendor to leave any information and instruction manuals for you in the top drawer in the kitchen to help the you transition into your new home.
11
Settlement
Settlement will then be booked with the bank to exchange all paperwork and finalise the transaction.
Sometimes this date may move forward or backward depending on conveyancer and banks having their ducks in a row.
In our experience the delay will usually be a result of the bank not being ready.
If all goes to plan the settlement will occur on the date and transfer of property will now go to you.
If however for some reason the hold up for settlement is a result of the vendors bank not being ready to settle you may ask through your conveyancer for early possession.
Sometimes this date may move forward or backward depending on conveyancer and banks having their ducks in a row.
In our experience the delay will usually be a result of the bank not being ready.
If all goes to plan the settlement will occur on the date and transfer of property will now go to you.
If however for some reason the hold up for settlement is a result of the vendors bank not being ready to settle you may ask through your conveyancer for early possession.
12
