The Buying Process in Australia.
The Steps to Take When Buying Property in Australia.
DEVELOPMENT PROJECT OR OFF THE PLAN:
First: Reservation
When you have found your Australian property and you are ready to place a deposit, it is normal procedure that the buyer do so through the agent who showed him the property, or through the buyers own Buyers Agent. If
It is very important at this stage that both parties, you the buyer and the vendor understand what is included in the purchase, and what is not. It is then expected that the buyer lodges typically a AU$2,000-$5,000 Reservation deposit as a proof of intention to complete the purchase, and the Vendor will take the property out of the market.
Second: Contract of Sale and Purchase
The buyer then appoints their own lawyer in Australia to represent him. Vendor delivers the contract to the lawyer for review.
(If the buyer is a foreign buyer, then an Australian Government approval needs to sought for permission to purchase)
Once the lawyers approves the contract, or agrees any changes with the developer, usually within 10 days of signing the “Reservation Form” the buyer enters in a Contract of Sale identifying clearly the following:
-The agreed price
-Exactly who is the buyer and vendor
-The date of exchange and of the completion of contract
-What is included in the purchase, e.g. furniture, schedule of fittings and finishes etc
-Floor plans
-Title details, zoning, permits etc
-Payment Terms Any other terms and conditions
This type of contract is used in almost all OFF-PLAN or developer direct sales made in Australia and is legally binding both parties. This contract will establish in detail all procedures by which the transaction will be effected and the conditions of sale, such as the maximum term allowed for completion, and exactly who the buyers and vendors are. A deposit must be paid when signing this promissory contract of sale and purchase to the vendor, normally 10% of the total purchase price agreed less the reservation deposit. This contract can be signed personally by the parties or by the lawyers acting for them based on a power of attorney.
Third: Settlement
Upon completion, the lawyers for both parties, plus the bank if the buyer has a mortgage, will "meet" to hand over all relevant document, deeds, and of course, the funds needed to complete the purchase, including Government charges and taxes, stamp duty etc if it has not yet been paid, and other disbursements.
With the transaction completed, the buyer’s lawyer will then proceed to register the new owner of the property into the Land Registry.
At this stage you are the owner of your Australian Property and it’s time to start living the Dream!
SECONDARY SALE:
First: Reservation
When you have found your Australian property and you are ready to make an offer, it is normal procedure that the buyer will make a realistic offer via the agent who showed him the property, or through the buyers own Buyers Agent.
If Citylife is representing you as your buyers agent, or has shown you the property, we will proceed to negotiate a deal that you are happy with and to the satisfaction of the vendor.
It is very important at this stage that both parties, you the buyer and the vendor understand what is included in the purchase, and what is not. It is then expected that the buyer lodges typically a AU$10,000 Reservation deposit as a sign of good faith, and the Vendor will take the property out of the market for an agreed period of time.
Second: Contract of Sale and Purchase
The buyer then appoints their own lawyer in Australia to represent him. Vendor delivers the contract to the lawyer for review.
Usually within a couple of days of signing the “Reservation Form” the buyer enters in a Contract of Sale identifying (with a 3 days cooling period) clearly the following:
-The agreed price
-Exactly who is the buyer and vendor
-The date of exchange and of the completion of contract
-What is included in the purchase, e.g. furniture, schedule of fittings and finishes etc
-Floor plans
-Title details, zoning, permits etc
-Payment Terms
-Any other terms and conditions
This contract will establish in detail all procedures by which the transaction will be effected and the conditions of sale, such as the maximum term allowed for completion, and exactly who the buyers and vendors are. A deposit must be paid when signing this contract of sale and purchase to the vendor, normally 10% of the total purchase price agreed less the reservation deposit. This contract can be signed personally by the parties or by the lawyers acting for them based on a power of attorney.
Third: Settlement
Upon completion, the lawyers for both parties, plus the bank if the buyer has a mortgage, will "meet" to hand over all relevant document, deeds, and of course, the funds needed to complete the purchase, including Government charges and taxes, stamp duty etc if it has not yet been paid, and other disbursements.
With the transaction completed, the buyer’s lawyer will then proceed to register the new owner of the property into the Land Registry.
At this stage you are the owner of your Australian Property and it’s time to start living the Dream!
