Hi All,
We are in the market to purchase a townhouse. The rental market is insane and our landlord will most likely increase our rent again.
I understand the basics of buying but getting myself confused on few things. Our finances are set and pre approved. We also liked a property and plan to offer next week.
Could you please check if my steps are okay?
1) I’ll get my solicitor to review the contract
2) Give an offer to the vendor if he accepts then
3) I’ll pay 0.25% deposit and a cooling off for 5 days
4) During cooling off period my solicitor will get the pest and building inspection and go through Strata report. My agent/broker will start the paperwork with the bank. The bank will send someone to inspect the property for valuation.
5) At the end of the 5 day period do I write a check of 5 or 10% to the vendor? Or my bank pays and I pay the bank the deposit?
I’m confused in this step.
6) The settlement date is usually 42 days after the 5 day cooling off period, right?
There is no point in having the contract reviewed until they accept your offer, you are wasting money here unless you are 100% sure they will sell.
If you do this every time you want to purchase it will end up costing you alot over time.
If you are paying .25% deposit, then you gotta wait for the bank to make the funds available before you make the check, the amount or % will be specified in the contract.
So you make the offer, they accept the offer, then provide you the contract, then you review the contract with your conveyancer which will be cheaper than a solicitor as its a fixed cost instead of a per hour cost.