Conveyancing for purchasing a property
When purchasing a residential property in NSW you have two options:
Exchange Immediately – Which will secure the property for you and not allow any other person to buy it (you take the property off the market);
Exchange after obtaining Legal Advice, Formal loan approval and Building Inspections
Securing the Property
The first option you have is to exchange contracts immediately, usually with the agent. At Boyd Conveyancing, we are able to meet with you at short notice to advise you on a contract before exchange.
After exchange you will have a five business days cooling off period. During the five business days Boyd Conveyancing Services will chase written unconditional loan approval and organise any pre purchase inspections, such as, pest and building reports on your behalf.
Finance can take up to two weeks and we recommend that you ensure that you have conditional or pre-approval on your loan prior to exchanging contracts.
If you choose not to proceed with the contract in the five business days then you will forfeit 0.25% of the purchase price.
A cooling off period does not apply to properties purchased at auction. You will be immediately bound to a contract entered into at auction. It is therefore important to have undertaken any pre purchase reports required, such as, pest and building reports and to have written unconditional finance approval. If you are unable to complete a contract you can be in a position where you are at risk of losing the 10% deposit.
Exchange after obtaining reports, loan and legal advice on the contract
The second option is to wait until you have all pre purchase inspections and written unconditional loan approval prior to proceeding with exchange of contracts. The disadvantage to this is that the property will remain on the market until such time as you exchange contracts. During this time you are at risk that another purchaser will outbid you or exchange contracts prior to you and you may lose the property. The vendor may also elect not to proceed during this time and you will miss out on the property.
Boyd Conveyancing Services can help you to exchange contracts as soon as possible to limit the risk of you losing the property.
We will also discuss with you reports you may require, such as pest and building inspections, which will comment on the structure of the property.
You may wish to obtain a survey report to ensure the fencing is correctly located and the house is built within the property boundaries. Plumbing and electrical reports are also advisable. Boyd Conveyancing Services can arrange to obtain these reports on your behalf. We recommend you acquire these reports prior to exchange or the cooling off period expiring.
However, when purchasing a rural, commercial or industrial property there is no cooling off period. You will be immediately bound to a contract entered into. It is therefore important to have undertaken any pre-purchase reports required and have written unconditional loan approval already. If you are unable to complete a contract you can be in a position where you are at risk of losing the 10% deposit.
Between Exchange and Settlement
Settlement of your purchase usually occurs between 4 to 6 weeks following exchange of contracts and this term is usually negotiated prior to exchange of contracts. Settlement is where the funds to purchase the property are handed over in exchange for the title for the property. This is also the day that you are given the keys.
Boyd Conveyancing Services will liaise with you regarding the date that settlement of the matter is scheduled to take place and advise you of the necessary steps required by you, such as, organising insurance cover.
After exchange of contracts, Boyd Conveyancing Services will order all necessary searches to ensure the property is not affected by any outstanding notices, monies or intended to be resumed for rail, road or other interested parties.
Boyd Conveyancing Services will also liaise with you regarding payment of stamp duty or where applicable will organise forms to be completed to apply for exemptions of stamp duty.
Approximately a week or two prior to settlement Boyd Conveyancing Services will submit to you a settlement adjustment sheet which explains the amount due to complete the purchase. The adjustment sheet takes into account council and water rates paid or payable by the vendor and any other adjustments regarding the purchase. This will give you an indication of the funds required to complete and where Boyd Conveyancing Services anticipate the fund will come from, being either your bank, you or both.
A few days prior to settlement the vendor will advise how the funds for settlement are to be drawn and Boyd Conveyancing Services will again liaise with you and your bank / lender (if applicable) to have the cheques available at settlement to complete the matter.
Please note that you are not required to attend settlement as Boyd Conveyancing Services will attend to this on your behalf. We do ask that you conduct a final inspection of the property as close to the settlement date, if not on the morning of the settlement date whenever is convenient to you. This is to ensure the property is in the same condition as when you agreed to purchase it.
If you have obtained a mortgage to purchase the property your bank or financial institution should register the property into your name and will hold the Certificate of Title to the property until such time as you payout your loan.
If you are not obtaining a mortgage to purchase the property Boyd Conveyancing Services will attend to registration of the title into your name and the new Certificate of Title will be available following settlement.
Boyd Conveyancing Services have a fixed fee that does not vary. You will find that some firms charge further fees based on purchase price and if the property is not Torrens Title. Boyd Conveyancing Services do not have extra charges like these connected with their fees. Boyd Conveyancing Services do not charge an extra fee for photocopying, postage or to attend to the registration of your title.
For costs incurred regarding the purchase of your property please contact our office for a full description
If you have any enquiries regarding Buying Conveyancing in NSW please contact Boyd Conveyancing Services.