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Meehans Solicitors

Conveyancing Purchases

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HELPING YOU UNDERSTANDING THE PROCESS OF PURCHASING

After you have found the property of your choice have the Agent provide Meehans with details of the purchase so we can immediately commence the necessary legal steps to enable you to successfully purchase your most important asset.

  • You have found a property, what now?

    After you have found the property of your choice and your offer has been accepted you need to provide the Agent with our details. The Agent will then provide Meehans with the details we require so we can immediately start the conveyancing process.

    If you have made an offer on a property and it is accepted, we strongly suggest you contact our team at Meehans to arrange them to peruse the contract for sale and provide you with advice before you sign anything. We understand that this is not always possible, and accordingly you can contact our hotline on 0418 373 237 with any questions you may have prior to signing.

    The contract for sale contains important information about the property, and often makes disclosure about structures at the property that may not be council approved. Our team at Meehans will ensure that the terms of the contract for sale are explained to you in plain language that you will understand.

    If your offer on the property is accepted there are two ways in which the matter may proceed:

    • You and the vendor sign the contract for sale with the agent, and you make payment of a non-refundable deposit of an amount which is equivalent to 0.25% of the purchase price. The contract for sale is then exchanged by the agent, and by law you are entitled to a minimum 5 day cooling off period. You can rescind (i.e. pull out of) the contract for sale at any time during the cooling off period for any reason however you will forfeit our 0.25% deposit to the vendor. The balance of the 10% deposit is payable at the expiration of the cooling off period.
      There is nothing wrong with signing a contract for sale in this manner as the cooling off period is for the benefit of you, the Purchaser. It gives you the opportunity to order pest and building reports, make further enquiries, and organise your finance without the fear of being ‘gazzumped’. In the Macarthur region this is the most common way contracts for sale are entered into between vendor and purchaser.
    • Alternatively, the agent provides Meehans with a Sales Advice after you and the vendor have agreed to a price, and you have paid a holding deposit to the agent. Generally speaking, this holding deposit should be refundable as legally the property remains on the market until contracts are exchanged however, this should be made clear with the agent. It is sometimes the case that the holding deposit may not be refundable in full.
    • Once you are able to enter into the contract for sale unconditionally, Meehans and the representative of the vendor will arrange an exchange of contracts. Exchange usually takes place (7) to (10) days after the placing of the holding deposit. At the time of exchange the balance of the 10% deposit is payable, and there is no ‘Cooling off Period” as you have then had the benefit of obtaining legal advice prior to exchange.


    If the purchase proceeds in this manner, then the property remains legally on the market until contracts are exchanged.

     

  • What can I tell about the property just by looking at the Contract?

    We recommend that you call Meehans before exchanging contracts with an agent. This will ensure we can answer any preliminary questions you may have prior to committing yourself to payment of the 0.25% non-refundable deposit. However, generally you should take note of the following:

    • Ensure all the inclusions are noted on the contract. These are the items that you would expect to remain at the property. Also take note of the exclusions, these are the items that the vendor is taking with them and are excluded from the sale;
    • Ensure your full name (including middle names) are correctly stated on the front page of the contract;
    • Confirm that the stated purchase price is what you have agreed to and is inclusive of GST;
    • That you will have a 10% deposit OR if you are arranging a Deposit Bond OR if a reduced deposit has been agreed, that the appropriate clause has been added. Please note that a 10% deposit is standard unless otherwise agreed to. If you need to use an a reduced deposit or a Deposit Bond it is important you tell the agent prior to the exchange of contracts;
    • That you are agreeable to the completion time stated in the Contract (usually 42 days) and that you will have the monies necessary to purchase the property by that date;
    • That you are purchasing the property in the correct name for asset protection and tax purposes (this is something your accountant can assist you with).

     

  • What happens during the cooling off period or before Contracts are exchanged without a cooling off period?

    Before you are locked into proceeding with the purchase it is prudent that we arrange the following reports and make the following enquires:

    • Pest Report;
    • Building Report;
    • Survey Report;
    • Certificate of Compliance from the Local Council (i.e. Section 149A Certificate);
    • Unconditional Loan Approval from your lender.
  • What happens if I rescind during the cooling off period?

    If you discover any problems with the property during the cooling off period, or should you elect not to proceed for any reason, you will forfeit your 0.25% deposit to the vendor. You must rescind the contract in writing prior to the end of the cooling off period. If you wish to rescind the contract please advise our team at Meehans immediately and we will issue the necessary documentation required to rescind the contract on your behalf. 

    After the five day cooling off period if you have not exercised your right to rescind, you are boundy by the Contract. 

     

  • Do I have to organise my own Pest & Building inspections?

    Not unless you want to. At Meehans we can happily arrange for all necessary inspections to be carried out on the property on your behalf. However, if you have your own inspectors you would like to engage this is not a problem.

  • What happens after the matter cools off?

    After matter cools off various steps are taken to enable settlement to take place on time.

    These include the signing of mortgage documents if necessary, and liaising with your lender (if any) to ensure the funds will be available in time for settlement.

    We also make further enquiries about the property, and ensure that the matter proceeds to settlement on time and in accordance with the terms of the contract for sale.

  • What happens at settlement?

    Settlement is the day that we hand over your money and/or arrange for the Lender to hand over the balance of the purchase price to the vendor, and you obtain title to the property and are able to collect the keys and move in.

  • What Should I do before settlement?

    You should arrange a time with the agent to go and inspect the property one last time and make sure that the property is in the same state of repair (subject to reasonable wear and tear) as it was as at the date contracts were exchanged.

    If there are any problems you should contact us immediately. One settlement has occurred it is very difficult for us to negotiate for any repairs to be carried out. You should ensure that all the stated inclusions marked on the contract remain at the property and are in working order.

    You need to arrange a valid insurance policy on the property to cover you from the day of settlement. Please note that many Lenders may set a minimum insurance amount and will require you to note them as Mortgagee on the policy. If you do not have a Lender and are purchasing your property with cash you should ensure that you remember to arrange your own insurance. This is very important as you do not have a Mortgagee to remind you to arrange it, and it is often something that is easily missed.

    If you are required to contribute your own funds towards the purchase price in addition to the funds received from your Lender, we will contact you a few days prior to settlement providing you with a direction as to the amount required, and where they are to be paid. You need to make your own arrangement for telephone, electricity, internet and gas connection and for the availability of those services upon settlement. These are personal accounts as such cannot be arranged by Meehans. We will take care of the transfer of your council rates and water rates into your name.

  • Congratulations the Property is yours… now what?

    Following settlement, generally speaking, your first mortgage repayment is due in one month’s time. However, this should be checked with your individual lender. There is a wide range of options you can set up for your mortgage repayments including direct debits on a weekly, fortnightly and monthly basis. 

    Usually your water and council rates will be paid up until at least the next quarter, and we will advise you of dates they are paid to in our final settlement letters to you.

    You need to make your own arrangement for telephone, internet, electricity and gas connection and for the availability of those services upon settlement. These are personal accounts and as such cannot be arranged by Meehans.