Buying a Home "The Purchaser"

 

Purchasing a property is most likely to be one of the most expensive and important steps of your life.

It is critical that a Purchaser's Solicitor is thorough when giving advice and any explanation throughout the transaction.

We at RJI Legal are committed to each client and ensure that the Purchaser is never left feeling "in the dark" about any issues affecting the purchase.

A purchase transaction can be quite detailed. For your information, we briefly outline the general procedures followed on a Purchase matter:

A client will find a property which they wish to purchase and a deposit is placed on this property with the Agent, to secure the purchase.

The Agent is advised by the Purchaser as to the name of the Solicitor who will be acting on his/her behalf. The agent will then provide the Solicitor with a Sales Advice with the relevant information.

It is at this time when the Purchaser should obtain FORMAL LOAN APPROVAL.

The Purchaser then instructs a Solicitor to act on the purchase and the Solicitor:

1. Requests a copy of the Contract and arranges for an appointment with the Purchaser to explain and sign the contract
2. Orders the pre-purchase inspection Reports (Pest, Building and Survey Reports)(These are provided to the Purchaser).
3. Requests a copy of the written loan approval from the Purchaser.

Exchange

 

Contracts are exchanged (i.e both the purchaser and vendor sign counterpart contracts and then the Parties’ Solicitor dates and exchanges the contracts) and it is at this time that the Purchaser pays the balance of the 10% deposit to the Agent (unless otherwise stated in the Contract). This money is usually held in a trust account at the Agent's office, pending completion.

Should the Vendor have allowed the Purchaser the benefit of a "Cooling Off' period the Purchaser now has five days from the date of exchange to obtain pre-purchase inspection reports. Should they discover any problems with the property or in obtaining finance the Purchaser may rescind the Contract within the five day period and forfeit 0.25% of the purchase price in the Contract.

After Exchange:

After exchange the Purchaser's Solicitor obtains all necessary searches, etc. and arrangements are made for any Mortgage documents to be signed
The Purchaser's Solicitor returns signed Mortgage documents and enquiry searches and arranges for settlement to be booked.

 

Settlement

The standard period of time between exchange and completion is 6 weeks.

Completion is then arranged and all parties, including the Lender’s representative attend completion. The Purchaser is not required to attend as our firm will attend on your behalf.

Prior to Settlement the Purchaser should carry out a Final Inspection arranged with the Agent, to check the property is in the same condition and order as at the time of initial inspection.

At completion the Purchaser pays the Balance of Purchase Price and the Real Estate Agent is paid the commission. The loan is drawn down from the Lender and paid on Settlement.

At completion the property must be vacated by the Vendor unless the Contract provides otherwise. The Purchaser is entitled to move into the property at the time of completion.