Buying Your Home
Making an Offer
It is important to put your best foot forward when making an offer. Make a firm offer to avoid confusion. If an agent says that there are other offers on the property, there typically is. This doesn’t mean you shouldn’t make an offer yourself – in fact, the property remains on the market until the vendor considers all offers.
The Contract
Once you have inspected a property and have decided that you want to purchase it, Upscale Development will prepare a contract for you to sign. This contract will include information about the terms and conditions of the loan, the deposit required, and any items to remain on the property such as air conditioner units or antique light fittings.
Deposit
Once the contract has been signed, you will have a set time period to pay the deposit. The contract will also stipulate the amount of the deposit to be paid. This amount can be as much as 10 percent, but will vary depending on the contract. The vendor should never be paid directly, or have access to the deposit until the house has been sold.
Building Inspections
It is important to have these inspections carried out to provide peace of mind that when your new property is settled, there won’t be any surprises. The building component will determine the structural soundness of the building, any significant defects to both interior and exterior, and condition of any improvements. The pest inspection covers all areas of the property including the roof void and sub-floor.
Insurance
As soon as the contract has been signed, the risk associated with the house is your responsibility. In fact, the contract will state that “the property is at the Buyer’s risk from 5pm on the first Business Day after the Contract date.” So it is important that you have insurance for your property at this point to cover any potential damage.
Finance Condition
As part of the conditions of the contract, the sale can be subject to a finance clause. The buyer can specify the time period (typically 14 days) required to obtain approval on a loan for the required finance amount and notify the vendor or their solicitor. Loan pre-approval can make this a smoother process. It’s important to remember that there can be delays and this is part of the process.
Special Conditions
Special conditions clauses can also be added to the contract by either you or the seller. These conditions can be anything about the property. It could be as simple as the contract being subject to you obtaining finance, or conditional to a tenancy.
Pre-Settlement Inspection
You are entitled to conduct a final inspection before you take possession of the property. This allows you to check that nothing has been changed or damaged in the property, other than the normal wear and tear.
Settlement
Settlement is the date when you pay the remaining balance of the purchase price and take possession of the property. The keys and the deeds are handed over. Your solicitor or conveyancer will arrange this process and also inform the lender that the property has settled.
If cash has been paid, you will receive the deed, or the bank will hold the deed until fully paid if you have a loan.
Conveyancing
Conveyancing is the legal process of transferring the property’s title from the vendor to the buyer. This can be either done by a solicitor, or you can do it yourself. Upscale Development recommends that buyers use a solicitor as experience has shown that doing it yourself can lead to errors and/or mistakes. Using a conveyancer protects you from the potential of wasting time and money.
