You’ve found your dream home and agreed on a price with the Vendor!
What happens next?
Step 1 Provide the Agent with your solicitor’s details and the Real Estate Agent will send a ‘sales advice’ to both the Vendor and Purchaser’s Solicitors.the Vendor’s Solicitor wil then issue a Contract to the Purchaser’s Solicitor.
Step 2 Contact your Mortgage Lender who will arrane for a valuation to be done on the property and arrange for a letter of unconditional loan approval to be issued.
Step 3 Your Solicitor will organise Pest and Building g Reports on the property to check for any problems and will also discuss with you whether you should order an identification survey for the property.
Step 4 When your Solicitor receives the Contract, they will review contents, assess the need for any amendments, and will meet with you to explain, diss and sign the Contract.
The Vendor and Purchaser sign identical counterpart copies of the Contract but do not both sign the same copy of the Contract.
Step 5 Contracts will the be “exchanged” by the Solicitors so that each party ends up receiving the other party’s signed copy of the contract.
“Exchange of Contracts” is the binding part of a conveyancing transaction when the Vendor becomes bound to sell and the Purchaser becomes bound to purchase the property. Until exchange of Contracts occurs, either party can pull out of the transaction.
The usual time from exchange of Contracts until settlement is 42 days or 6 weeks.
Step 6 Your Solicitor will then order a range of searches and enquiries from various government departments and agencies including Council rates, Water rates and Land Tax to ensure any charges on the land are able to be paid on settlement and to find out any other issues that may impact on your property.
Step 7 Depending on your Mortgage Lender, your Solicitor may also meet with you to discuss and sign your Mortgage documents.
Step 8 the Purchaser’s Solicitor will calculate “Settlement Figures” the amount you need to pay on settlement and will include any adjustments to be made to the Purchase price for rates, taxes or strata levies.
Step 9 Your Solicitor will liaise with your Mortgage Lender to calculate how much of the mortgage advance will be available to pay on settlement after deduction of the loan establishment fees and other loan charges and to direct the Lender what cheques need to be drawn for settlement.
Step 10 Your Solicitor will then book in settheme to with the Vendor’s Solicitor and the Mortgage lender. You do not need to attend settlement.
Step 11 You should arrange Insurance for the property and you should also contact the Agent to organise a time to carry out a final inspection of the property prior to settleme to taking place.
Step 12 Your Solicitor will attend settlement and the title deed to the property will be handed to the Mortgage Lender which will lodge it at the Land Titles Office to Transfer the title into your name.
You can then collect the keys from the Agent!
If you are considering buying a property, it is important to engage the services of an experienced Lawyer to act on your behalf. Call Geoff Brazel on 4324 7699 for further information.
