The Contract Process as a Buyer

1. You should look at getting insurance on the property. It is a standard term of the contract that risk is with the buyer from 5pm on the first business day after the contract date.

2. You should look at when the deposit is due and pay the deposit before the due date.

Most residential contracts will be subject to finance and building and pest clauses. A lot of times these clauses are due 21-28 days from the contract date, so you have to act fast.

You should contact your bank or mortgage broker and give them a copy of the contract as soon as possible. That should ensure that you have a response from your bank or mortgage broker before your finance condition is due. Once you hear from the bank or mortgage broker about your finance approval you should speak with your Solicitor about where you go to from there.

You should contact your building and pest inspector and arrange for a building and pest inspection. Sometimes these inspectors can be booked out for 1-2 weeks so you should contact them sooner rather than later to arrange the inspection. It is advisable for you to attend the inspection, if possible, as the inspector can point out any concerns and give you an idea of what is needed to fix those concerns. Once you get the report you should read and speak with the inspector about any concerns and then advise your Solicitor whether you are happy or not with the report and discuss where you go to from there.

Sometimes there are special conditions or other requirements for the contract to be completed such as tenants to move out of the property. If any of these conditions require action from you, you should speak with your Solicitor to see what you need to do to satisfy the conditions. Once you have satisfied the conditions you should notify your Solicitor so that they can then notify the Seller’s Solicitor.

Once all conditions on the contract is satisfied, the contract will be unconditional. This effectively means that the Sellers and the Buyers are locked in to complete the contract. If you haven’t already you should look at booking your removalist.

You should also speak with your Solicitor and your Bank to make sure that all documents necessary for settlement are signed and ready to go.

Even though the contract is unconditional sometimes issues arise and settlement may be extended. You should speak with your Solicitor as soon as possible if you do require an extension of settlement so that they can sort the issue out with the Seller’s Solicitor.

A lot of times the issues that arise are no ones fault and they are frustrating, however, if both parties work together, then these issues can be resolved and settlement can be achieved as soon as possible.

It is the day of settlement. You are attending your pre-settlement inspection. After you attend the inspection you should speak with your Solicitor and advise whether you are satisfied with your inspection or not.

Then it is waiting time. Settlements are handled by your Solicitor and normally occurred after lunch between 2pm and 3pm. Your real estate agent will arrange with you a time after settlement to deliver you the keys. Before the agent can had you the keys, they have to receive emails from both Solicitors authorising release of the keys to the Buyers.

Once you get the keys it is time to get the photos with the Sold sign and then starting moving in!