REAL ESTATE BUYER PROPERTY PROCESS
Video: Steps 1 – 6:
Video: Steps 7 – 13:
Step 1 – Obtain Real Estate Contract of Sale & Section 32
Obtain a copy of the real estate contract prepared by the Estate Agent and a copy of the section 32 prepared by the vendor’s conveyancer. Read these documents carefully!!. The contract is legally binding and contains the terms and conditions of sale. A sample contract is located on our website under news.
Step 2 – Appoint a Real Estate Conveyancer
Appoint a real estate conveyancer. Ask the conveyancer to review the property contract of sale and the S32 documents for any prospective issues prior to signing the contract. Confirm your offer in writing within the real estate contract itself and return it to the Estate Agent for counter signing by the vendor. Once both parties sign, the contract becomes legally binding. The buyer has three business days to exit the contract, taken from the date of buyer signature – known as the ‘cooling-off period’.
Step 3 – Offer Acceptance
The buyer’s conveyancer requires the buyer to complete and sign an ‘authority to act’ which authorises the residential conveyancer to act on the buyer’s behalf. The conveyancer requires some personal information about the buyer and the real estate being purchased. A “Buyer Information Template” lists the information required and is located under news. Buyer’s should talk with their conveyancer about stamp duty exemptions and concessions that they may be eligible for. These stamp duty exemptions and concessions are located under news.
Step 4 – Real Estate Title Search & Certificates Ordered
The buyer’s residential conveyancer completes a title search and orders certificates to search for caveats or mortgages, and to prepare for any financial adjustments required at settlement. E.g. land taxes, water rates etc. Refer to news for a real estate certificate of title sample.
Step 5 – Information Sent to Buyers Bank
Stamp duty exemption or concession forms and a signed copy of the real estate contract (with S32) are forwarded to the buyer’s bank by their residential conveyancer. This information is required to support the buyer’s application for finance.
Step 6 – Section 27 Received from Sellers Conveyancer
The buyer’s conveyancer reviews the section 27 signed by the vendor. A sample S27 is located under news. Evidence of the payout amount being less than 80% of the outstanding loan amount, must be provided by the vendor and their residential conveyancer for S27 authorisation. There must also be evidence of no mortgage default by the seller.
Step 7 – Transfer of Land Document Prepared by Buyers Conveyancer
The buyer’s real estate conveyancer prepares the transfer of land document. Both parties sign the document to authorise the change of title from the seller to the buyer. A sample of the transfer of land is located under news . It’s highly recommended that buyer’s take out property title insurance. Refer to news for information.
Step 8 – Statement of Adjustments Sent to Sellers Conveyancer by Buyers Conveyancer
The buyer’s conveyancer prepares a statement of financial adjustments for the vendor’s conveyancer. Between the conveyancers, financial adjustments are made for items like council fees, water rates, land tax and body corporate fees.
Step 9 – Cheque Directions Received by Sellers Residential Conveyancer
The vendor’s conveyancer forwards a list of which cheques are required by the buyer to the buyer’s conveyancer for property settlement.
Step 10 – Settlement Arrangements Made Between Real Estate Conveyancers
The buyer’s conveyancer organises the property settlement with the buyer’s bank & the vendor’s conveyancer.
Step 11 – Final Property Inspection Organised
The buyer organises a final property inspection with the Real Estate Agent around one week prior to settlement.
Step 12 – Real Estate Settlement Completed
The settlement is completed, the buyer notified and relevant notices are forwarded to the authorities.
Step 13 – Buyer Picks Up Property Keys
The buyer organises to pick up the property keys directly from the Estate Agent.
#This property process flow chart is intended to be used as a guide only.