When you find the house you want, you will need to make a formal offer in writing (your real estate agent, licensed conveyancer or lawyer will have a standard form). It is usual to have your lawyer or conveyancer look over the offer before it is presented to the agent or the seller.
The offer document will say which 'chattels' go with the sale – these may include curtains, light fittings, an oven and a dishwasher. The chattels are negotiable. There can sometimes be several counter-offers, so your proposed purchase is not a certainty at this point. Most first offers are 'conditional'.
The conditions may include:
- finance being approved
- a satisfactory independent valuation
- a satisfactory title search
- a satisfactory building inspection
- a Land Information Memorandum
- sale of another property
A deposit – usually about 10% – is paid to your licensed conveyancer, lawyer or real estate agent when an agreement to purchase is reached. The licensed conveyancer, lawyer or real estate agent is legally required to hold the deposit for a minimum of ten working days or until the conditions of sale are met.
The contract will also state the 'settlement date' – this is the date when the house becomes your legal property, and you can move in. It is when your licensed conveyancer or lawyer pays the final purchase amount to the seller. Once everything is in order, the contract becomes unconditional. There are penalties if the sale does not go ahead.
