Do I have to be present at exchange of Contracts or at the settlement of my matter?
No, the exchange of contracts will usually be arranged and effected by either your real estate agent or your solicitor. As most settlements take place at the offices of the Vendor’s discharging mortgagee in the Sydney SBD, there is no need for you to attend settlement. We will contact you once settlement has been affected to confirm that your matter has been finalised.
When do I have to pay a deposit?
The deposit is payable by a purchaser at the time that contracts are exchanged. If the contracts are exchanged under a cooling-off period you are required to pay a deposit equivalent to 0.25% of the purchase price. Should you choose to proceed with the purchase the balance of the agreed deposit amount (usually 10% of the purchase price) must be paid before the cooling-off period expires. If you don’t exchange under a cooling-off period the full deposit is payable at the time the contracts are exchanged.
How many times can I inspect the property before buying?
You are entitled to inspect the property as many times as you wish before you exchange contracts subject to vendor agreeing to this. Once contracts are exchanged you are entitled to undertake one further inspection of the property which is usually done on the morning of the date of settlement. The vendor however may at their discretion agree to further inspections between exchange and settlement.
When am I entitled to possession of the property?
The purchaser is entitled to possession of a property once settlement has been effected unless the property is sold subject to tenancy. In these circumstances the purchaser assumes the role of landlord from the vendor and is bound by the provisions of the existing lease. Sometimes if the property is vacant it may be possible to negotiate taking possession of the property prior to settlement if the vendor agrees. In this case the vendor will usually require that the purchaser pay an occupation fee until settlement is effected.
What happens if the property is damaged between exchange of contract and settlement?
Normally, the risk of damage to the property remains with the vendor until the transaction has settled. Consequently, the vendor must keep the property unsured until the settlement both in respect to buildings and their contents. This risk only passes to the purchaser upon settlement unless the purchaser takes possession of the property prior to that time. Accordingly, purchasers must ensure that they have appropriate building and contents insurance in place commencing from the date on which settlement is effected or the date on which possession is taken, whatever is the earlier.
