Congratulations! Your purchase offer has just been accepted! Whether it's your new home, or the latest investment property to boost your income, it's an exciting time and a cause for celebration. But wait, what happens next and does it really stop there? Hate to break it to you, you’re not actually done. The "process" is actually just beginning… So, what exactly happens after your purchase offer gets accepted? There are mortgage applications to complete, surveyors to hire, contracts to review and sign, and home inspections to think about that may lead to further renegotiations. Suffice it to say, it’s not yet time to move in. There are even cases when you get gazumped – a situation wherein you reach a verbal agreement on price with the vendor, but the property is sold to someone else. This occurs when a vendor accepts a higher bid from a different person. It can be an utter hassle when you’ve already spent money on inspections. So what exactly do you do? We break down the things you need to do before popping that bottle of champagne!
You must settle a contract of sale with your vendor. A contract of sale is a legal document that stipulates the terms and conditions of the transaction, including the agreed upon price and settlement date. It should also include a copy of the property title, local planning certificates, a sewerage diagram, and other vital specifications and inclusions.
This is extremely helpful, especially to first home buyers. Vendors will not guarantee the structural soundness of the property, so it’s necessary that you get the help of professionals to do this for you. Licensed conveyancers are also equipped to give you legal advice relating to property, which is valuable, especially when it’s time to discuss the terms and conditions of your contract. During this stage, you or a conveyancer can negotiate changes to the agreement and ensure amendments reflect agreed changes.
Conveyance checks also ensure that there are no hidden surprises before you take ownership of your home. This includes checking rates and taxes are all paid up to date, and that the vendor is legally entitled to sell the property. Doing this kind of due diligence seems arduous at this final exciting stage of your purchase journey, but being thorough is one of the most important rules of investing, so hang in there.
When all is settled with the inclusions of the contract, you should be ready to exchange contracts. The sale contract needs to be signed by both you and the vendor. At this stage, you’re required to pay a deposit of 5-10% of the purchase price. The contract will include a settlement date, which indicates the date that the property becomes yours legally. This is also the day that the balance of the purchase has to be paid.
On or before the settlement date, you need to ensure you’ve organised the following:
It is highly advised to take a last look at the property with an agent on your settlement date. This is to make sure everything is in place and ensures tenants are really moving out. Get the keys to your new home! After handing over the balance to the vendor’s solicitor and after obtaining the title of ownership, you can collect the keys from your agent. Now you can wholeheartedly say that the property is indeed yours!
If you’re about to purchase an investment property or your first new home, A9 Property provides first-time homebuyers and property investors knowledge on the world of real estate. Our weekly real estate blog discusses a variety of property-related topics, including property investment strategies, real estate industry trends, and current property market shifts to give you valuable insights and help you make informed decisions. We specialise in off the plan properties – a popular investment strategy in Brisbane and Australia. If you're looking to invest, Check out our carefully selected portfolio of off-market properties for sale or contact us for an obligation-free chat to discuss how you can succeed in the business and make the right property investments.