WHAT IS THE COOLING OFF PERIOD?
The cooling off period refers to the time period in which you, the buyer are urged to seek both independent legal advice and an independent valuation of the property. The cooling off period is for a total of FIVE business days commencing from the date of the Contract of Sale (this is the only condition where the actual date signed is counted as day one).
You can change your mind about purchasing the property during this 5 day period, however, you can incur a termination penalty of 0.25% of the purchase price. Refer to page 5 of the CONTRACT OF SALE stipulating the terms and general information on the Cooling Off Period. The most commonly asked questions concerning the cooling off are noted here and are answered by the Office of Fair Trading.
TIP It is helpful to have the following prepared prior to making an offer on a property;
Have a solicitor in mind to undertake your Conveyancing
Have your finance pre approved by your financial institution
Consider your desired settlement and possession dates
Consider your current finances, as a deposit will be necessary. You will need to take into account how much deposit you’re able to pay and when you will need to pay it.
WHEN IS MY DEPOSIT DUE?
Monies paid by way of part &/or full deposit for a prospective purchase must be paid/finalised as per the amounts set out on the Contract of Sale. SPACE Property are the Trust Account holders of all deposit monies (unless otherwise stated on the Contract of Sale).
SPACE Property hold these funds until we have been given the authority to disburse them accordingly from the relevant legal or acting authorities in writing.
WHAT ABOUT STAMP DUTY?
Please consult your Solicitor and/or Financial Institution as rates are subject to change. There are many online calculators provided by home loan specialists with current rates and conditions.
WHEN DO I GET MY DEPOSIT IF MY CONTRACT IS UNSUCCESSFUL?
In the event your Contract of Sale is unsuccessful, any monies paid by way of part &/or full deposit (that is legally allowed to be refunded back to you) will be done so once SPACE Property has received written confirmation from both your solicitor & the Sellers solicitors. Refunds will be paid by way of electronic transfer to the person/s nominated on the Contract of Sale or as instructed by solicitors. Depending on the date that the original deposit was paid, up to 10 (ten) business days must lapse before monies can be refunded in full.
DO I HAVE TO NOMINATE A SOLICITOR?
Nominating a legal body to act on your behalf for real estate transactions is recommended by SPACE Property but is not compulsory.
WHEN ARE MY CONDITIONS DUE?
Phase 1 – CONDITIONAL STATUS
Conditions set out & nominated by you on the Contract of Sale have been dated & are noted to you in writing on receipt of the official copy of the Contract of Sale. Once the binding contract has been duly and fully executed by all relevant parties, the original document is processed and is forwarded by the Office Administrator to you, the Seller and your nominated solicitor.
If you have nominated certain conditions – Eg: a Building & Pest Inspection or Finance Approval, you must have satisfied these conditions by the due dates nominated on the Contract of Sale. If you foresee potential hurdles or delays, please advise your SPACE Agent and your solicitor as soon as possible in order to prepare for or perhaps even avoid any problems or delays that may arise.
WHAT DO I DO IF I NEED AN EXTENSION?
Refer any extension of time requests to your SPACE Agent and solicitor acting on your behalf. It is imperative that both parties are made aware of your intentions. Your SPACE Agent can often intervene & resolve situations directly with the Sellers of the property should an extension be required.
DO I HAVE TO INSURE THE SAID PROPERTY?
Refer Clause 8 of the Terms of Contract, Section 8.1 Risk, and the said property is at the Buyers risk & you are required to obtain insurance for the said property from 5pm on the first business day after the date of the contract. This avoids problems that may arise if the property is damaged or destroyed prior to settlement. Contact your insurance company for further information.
WHAT INSPECTIONS AM I ENTITLED TO?
On acceptance of the Contract of Sale, you are legally entitled to 4 (four) inspections of the said property. Refer to Clause 8 of the Terms of Contract, Section 8.2 Access for clarification of inspections.
WHAT HAPPENS NEXT WHEN ALL OF THE CONDITIONS ON THE CONTRACT ARE SATISFIED? IS IT NOW UNCONDITIONAL?
Phase 2 – UNCONDITIONAL
Once you have satisfied all of your conditions nominated on the contract of sale, your offer has reached UNCONDITIONAL status and we now await settlement. Please ensure that you remain in contact with your SPACE Agent even though your conditions have been satisfied. It is important that constant communication occurs as you may still have questions prior to settlement being effected.
WHEN DO I DO A PRE-SETTLEMENT INSPECTION?
You are legally authorised to have an inspection of the said property prior to the date due for settlement. Any inspections will be accompanied by your SPACE Agent up to 2 days prior to the date due for settlement.
WHAT HAPPENS AT SETTLEMENT?
Settlement is arranged & undertaken by your solicitors (or yourself if you are self-acting). A pre-determined time is confirmed by both Buyer & Seller solicitors at a location mutually acceptable to both parties.
The settlement process is quite brief & normally takes up to 15-20 minutes to effect successfully. Note that notification of settlement being effected must be in writing to SPACE Property from both Buyer & Sellers solicitors and can take up to 1 hour to be received, from the time booked.
Legally SPACE Property cannot hand out keys until this time. Refer to Clause 5 of the Terms of Contract Section 5.1 Time & Date of the standard Terms & Conditions of the Contract of Sale. It is not uncommon for notification to arrive from relevant parties at least 60 mins from the time settlement was effected. Ensure that you make contact with your SPACE Agent once your solicitor advises successful settlement as you will more often find out before our agency.
WHEN CAN I COLLECT KEYS AFTER SETTLEMENT?
On confirmation of settlement in writing, key/s will be made available to you from your SPACE Agent as pre-arranged the week prior to settlement. Note that SPACE Property hand over all keys that our agency & client have in their possession. Refer to the Terms of Contract, of the Contract of Sale.