Selling Process For Buyers
You have seen a property on the internet/paper you like…..what do you do next??
Usually if a property has just gone on the market an “Open for Inspection” will be scheduled for a Saturday and sometimes one will also be scheduled for a weekday afternoon/evening. If these times do not suit you or if you are wanting to inspect the property earlier you can give the Agent a call to arrange an inspection of a property. If the property is owner occupied then a time that suits both yourself and the owner can be arranged. If the property is tenanted then at least 24hours notice of the inspection is required to be given to the tenant.
Offers & Signing a Contract:
You have inspected a property that you like that meets your needs so what do you do now?
You need to let the Agent know that you are interested in the property and if you feel comfortable let them know that you would like to put an “offer” in on the property.
An “Offer” is what you would like to pay for the property and the other conditions you require. The offer is usually formalised in writing on a standard Law Society/REIQ Contract. Form 30c “Cooling Off” sits on the front of the contract. A Disclosure Statement & CMS (Community Management Statement) for a townhouse/unit sale forms part of the contract & sits behind the contract pages.
The information required to complete a written offer is:
Amount of Offer: what you would like to offer the owner for the property. This can be open to negotiation with owner. If more than one offer is received then a Multiple Offer situation arises where each buyer putting in an offer is advised that there is another offer on the table and they have an opportunity to put in their best offer as they may not be given another opportunity to negotiate further
Amount of Deposit: I usually ask for a 5% deposit. If you don’t have this amount of funds readily available then I will discuss what amount of deposit you can offer further with you
Conditions: On a Law Society/REIQ contract Building & Pest and Finance clauses are included in the body of the contract. Most buyers elect to have both building & pest and finance clauses but you do have the ability to waive these clauses if you chose to
Building & Finance Clause: Normal Timeframe: 5 working days (7 days). Building & Pest inspector(s) are employed by you to inspect the building structurally and for pests. Notification within the given timeframe is required to advise that the building & pest clause has been satisified with documentation done between the buyer’s & owner’s solicitors
Finance Clause: Normal Timeframe 10-14 working days (14-21 days) Time allowed for the buyer to obtain finance to cover purchase price. Notification within the given timeframe is required to advise that the finance clause has been satisfied with documentation done between the buyer’s & owner’s solicitors
Additional Clauses: Other clauses are sometimes required depending on a buyer’s circumstance eg need to sell a home before finance condition can be approved, request search for council certifications eg deck, home alterations
Solicitors: details of your solicitor are required so a copy of the contract can be sent to them once everything has been agreed to
Settlement: Timeframe for settlement of property. Often written as 30, 45 or 60 days from date of contract
Once the owner and yourself have agreed on all aspects of the contract and the last person has initially document I will put a date on the contract and the offer then becomes a Contract. A copy of the contract will be sent to you, the owners & both solicitors
As a buyer, you have 5 working days “cooling-off” as part of the contract and can terminate the contract for any reason. If you decide to terminate the contract on a “whim” then the owner is entitled to retain 0.25% of the purchase prices from your deposit. The “cooling-off” period is actually in place to protect owners from buyers who put in offers and decide on a “whim” to pull out.
You will have a Building & Pest inspection & bank valuation done at the property so you are able to fulfil the Building & Pest and Finance conditions on the contract. When all the conditions of the contract have been met or “satisfied” the property becomes “unconditional” and has been SOLD. Your solicitors will continue to liase with the owner’s solicitors and prepare documentation for settlement
Just prior to settlement, often the morning of settlement I will arrange to do a “Pre-Settlement Inspection” of the property with you. It is usually only a ten minute inspection to see if everything is the same as it was when you inspected the property initially. All light-fittings, window dressings, air-conditioners, dishwashers and any fixtures are required to be left in the property unless they have been excluded on the contract. The inspection is usually done, where possible, after the owner’s furniture has been removed.
Standard settlement timeframes are 30, 45 or 60 days with 30 days from date of contract being the most common in Queensland. Before settlement takes place your solicitor will liase with the owner’s solicitors, organise the change of title and set a settlement time when they will meet with the owner’s solicitors to exchange cheques/documents. The keys for the property are usually held by myself until I have received notification by fax from both solicitors that settlement has taken place. This can take up to an hour. Once the faxes have been received I have the authority to give the keys of your new property to you.