Sale and Purchase contract
Once you have looked around at a few properties you will have a good feel for what a property might be worth. If you are unsure you can always make your offer conditional to a registered valuers report.
Prices are generally negotiable depending on market conditions. And there are a few different ways to purchase a property. You could purchase the property through negotiation, auction or tender.
Negotitation
A lot of properties are bought this way, and the negotiation is recorded on the sale and purchase agreement, which is a legally binding document. Remember you are able to add any conditions you want to have, although too many conditions can make the offer less appealing for the seller.
Before signing any documents it is advisable to consult a lawyer. Some of the more common conditions on an offer include:
– Finance, and finance date is usually 5 to 7 working days from the date of signing the agreement
This allows you time to ensure that your lender is comfortable with the transaction and the house.
– Building inspection report
This lets you check out the state of the property, it could help to uncover any upcoming maintenance requirements and could get you favourable terms on the contract
– Lim Report
This reveals information about the land and the legal title held by the local council, it could reveal any problems with the title and or other problems with the site.
– Valuation Report
This will allow you to send a registered valuer to the property who will check out the recent sales for similar types of property in the area and give and indication of the property’s value.
Auction
In an auction you generally have to put in a 10% deposit if you win the bidding, unless you have made arrangements suitable to the seller before the auction. Once you have made your bid there is no backing out without some serious consequences, so make sure you have checked out the property thoroughly beforehand. Bidding happens on Auction day, all bidders are aware of the value of other bids.
If you have a smaller deposit on the day and have not arranged for the rest from another temporary source, you may be able to talk to the real estate before the auction to see if the vendors will accept a bid from you.
Tender
With a tender, all parties interested make their tender or offer for the property before the tender date, and the seller picks the best tender for his or her needs. In this situation the buyer is unaware of the value of other bids.
