We offer support through the purchase process

Purchasing residential real estate can be a very exciting process, however it can also be a confusing time for the prospective buyer.

Different agencies, although usually adhering to the local Acts and Regulations, often have different sets of general rules and standards.

Tips for buying

Property owners receive all types of interest in their property – some genuine, some not. Some people submit offers to test the possibility of a sale, but do not actually stay true with their offer. This can lead to frustration and concern for the owners as they try to assess who is actually a genuine buyer. There are some important points to remember when you sit down to formalise your offer to purchase.

  • • All Offers to purchase a property must be in writing (this includes electronic forms of communication);
  • • The Offers should be treated as your best and final offer. In South Australia, the Agent/Salesperson is not obligated to contact a purchaser if a more attractive offer is received.
  • • A purchaser who has financial arrangements in place, and is prepared to be negotiable on settlement dates to suit the Vendor (property owner) may well gain the edge.
  • • The Selling Agent/Salesperson must submit all written offers to the Vendor;
  • • The property will remain on the market while the Vendor considers each offer;
  • • Offers can be conditional upon a building inspection, bank/financial institution loan approval or any other terms incorporated in to the Contract by the potential purchaser or by the   Vendor;
  • • Each offer can include a date (and time) by which the offer lapses;
  • • Both the Purchaser and Vendor have to sign the contract of sale document before the offer is legally binding
  • • Before the Vendor accepts an offer, the Agent/Salesperson must ensure the Vendor has been presented with all written offers and has been advised of any offers communicated to the Agent/Salesperson (but not recorded in writing due to time constraints)

(Adapted excerpt from author, Lee Woodward)

Contracts

Once an agreement on price, settlement conditions, etc. has been reached with the Vendor, the sale can proceed.

Both the Purchaser and Vendor have to sign the contract of sale document before the offer is legally binding.

An exchange of a legally binding contract is the only way to actually buy or sell a property.

Should you decide to purchase one of PRESCOTT real estate’s listed properties, we will ask you to confirm the following details, enabling us to help you in the best possible way.

  • • The actual purchase price you will be paying for the property;
  • • The method by which you will pay the deposit i.e. EFT, Bank Cheque, Credit Care, other;
  • • The settlement period you require;
  • • The name of your chosen conveyancer;
  • • The name of you bank or financial lending institution;
  • • Any special conditions or requests that you may have so that we can inform the Vendor.

In South Australia, Agents/Salespersons can only exchange contracts to sell property with a cooling-off period. The cooling-off period commences once the Contract and Form 1 – Vendor’s Statement has been served and signed. The period for withdrawal lasts for two (2) business days and allows the purchaser the right to rescind the Contract for Sale for any reason. The cooling-off period is created to allow the purchaser time to organise inspections and reports, and to allow legal representation to check the contract.

If a property is purchased at Auction, the purchase is unconditional and there is no cooling-off period

Deposit

Once the  cooling-off period has expired and provided there are no other conditions in the contract, the purchaser is bound to the contract and must pay a deposit.