The Contract
The Contract of Sale will include the terms and conditions of the sale, and also specify what items are included or excluded from the sale.
You also need to know your disclosure responsibilities in the Vendor’s Statement, as failing to disclose certain information can lead to serious consequences.
The Deposit
Once a purchaser has been found and the Contract of Sale and Vendor’s Statement have been signed, then a deposit is paid by the purchaser. The amount is usually 10% and is held in the trust account of the selling agent.
Settlement
Settlement is the day that the money is exchanged for the property and keys are handed over. The settlement date is scheduled in accordance with the Contract of Sale, and is usually 30, 60 or 90 days after signing contracts. During the wait for settlement your lawyer will liaise with your bank in relation to releasing any mortgage held on the property. In this time, you should arrange disconnection of electricity and other services.
Before settlement, the purchase price will be adjusted to reflect the pro rata contribution by each party to council rates and water rates. There may be other adjustments, based on the Contract for Sale and Vendor’s Statement.
