Buying a property is not just about getting the buyer and seller to agree to the sale. You should consider the property’s condition, price, and several other details. After successful negotiation between both sides, the investor and the seller sign the contract of sale. But, what happens when you have signed the real estate contract?
Making a legal contract
The contract is the legally binding sale agreement between parties. The conveyancer or solicitor will help you negotiate the contract of sale. Hiring a solicitor is crucial for making the transaction successful. In some cases, the conveyancer will negotiate on your behalf to make the contract details align with your needs.
When the other party and you have signed the real estate contract, it means the property is exchanged. So, it is now a legal agreement committing both parties to the sale. As a buyer, you have to deposit the money at this time.
Settlement of the transaction
Settlement refers to the final step of your real estate transaction, where you have to pay the purchase price. It may occur after 30 days of exchanging the contract based on what has been agreed upon. The settlement statement is a document that shows the property’s purchase price, loan amount, and some other information.
Cooling-off period
While making the real estate contract, you might have heard of the term, cooling-off period. It is a legal timeframe when you can make a different decision on the contract. The cooling-off period will last for around 5 days in most Australian regions.
But, in some situations (like auctions), the cooling-off period will not be applicable.
During this period, the buyer can withdraw while sending a written notification to the seller. If they consider withdrawal, they have to pay a penalty of about 0.25% of the value of the deal. The time frame can be reduced or extended based on the needs of the parties. The seller may also terminate the contract in case the buyer cannot make the full deposit.
Transferring the real estate ownership
The conveyancer will help you transfer the property to a different party. After a successful settlement, your conveyancer will register to transfer ownership with the state land title office. When the registration is done, you can own the property legally.
In some cases, one party does not meet the obligations mentioned in the conveyance contract. So, another party will take that party to the legal court to claim damages and enforce the deal.
The conveyancing process ensures everything is informed to the buyer. It means that the buyer must learn about the liens and mortgages. It also assures them of the clean property title. Some buyers buy title insurance to avoid the risk of fraud during the title transfer.
If you are looking for a reliable conveyancer, you can contact Ownit Conveyancer in Bundaberg. You may hire a professional conveyancer for residential and commercial properties. They will help you accomplish the property transaction without a hassle.