Meehans Solicitors : Conveyancing : Exchange of Contracts : Property Settlement : Lawyers : Attorneys at Law : Campbelltown : Ingleburn : Macarthur

Prior to any agent showing your property to prospective purchasers the Law requires that they hold a valid contract.

In most cases contracts are available within forty-eight (48) hours.

A contract consists of a number of searches and certificates which show the owner, the boundaries, the zoning and any easements or restrictions on title.

Other things required to go into the contract include:

• Home Owners Warranty Insurance for any building work done on the property after May 1997 values at more that $5,000.00 up until 30th June 2002 and any work carried out above $12,000.00 after 1 July 2002;
• A copy of the residential tenancy agreement if you have a tenant;
• Special conditions drafted specifically to protect your interests.

Once a purchaser is found there are two ways that the matter can proceed:

1. We exchange contracts: The agent provides us with details of the purchaser and we arrange for an exchange of contract once the purchaser is in a position to unconditionally exchange contracts and make payment of the agreed deposit (usually 10%). The property remains on the market until the exchange of contracts.
2. Agent exchanges contracts: You and the purchaser sign the contract with the agent upon acceptance of the offer and the purchaser pays a .25% deposit. By law the purchaser receives a minimum five-day cooling off period which is for their benefit only; you as vendor are committed to the sale from exchange. The property is off the market for the time of signing notwithstanding that the purchaser may elect not to proceed within the cooling off period.

A purchaser will usually use this time to obtain finance approval, pest and building. If there is a problem with the property they can elect to rescind in which case they forfeit their 0.25% deposit.

Once contracts are exchanged by the agent, you as the vendor are bound by the terms and conditions of the contract as drafted.

You should ring Meehans on our conveyancing Hotline on 0418 37 32 37 for advice prior to signing the contract.

As a general rule you should ensure the following:

1. The inclusions and exclusions marked on the contract are correct;
2. If you have a mortgage that you have ensured the purchase price covers your mortgage and associated discharge costs in addition to agent’s commission.
3. That you have arrangements in place for accommodation upon vacation of the property within the time frame of the contract. A usual contract is for six weeks. If this contract has a cooling off period you may in fact have only five weeks to source alternative accommodation.
4. If you have tenants that are under a current Residential tenancy agreement. The property will need to be sold subject to existing tenancies. If you have tenants that are holding over under a Residential Tenancy Agreement we need to ensure that you have sufficient time to give them notice to vacate prior to the completion date if your purchaser elects vacant possession.
5. That any additions to the property have been done without council approvals are disclosed in the contract.
6. That if you are wishing to purchase another property simultaneously that you have made the agent aware of this.

You maintain the property until the matter is booked for settlement.

Settlement is that day that you have to vacate the property and the money is received from the purchaser.

We co-ordinate settlement for you and if you have a mortgage we will deal with your mortgagee in relation to arranging for a payout of the mortgage.

We will arrange for the balance of the purchase monies to be payable as directed by you.

We advise that usually a purchaser will wish to carry out a final inspection of the property a day or so before settlement.