FAQ's
How long does it take to buy a house?
It all depends on the settlement terms negotiated between the vendor and purchaser. Generally speaking, 60 days is a common period between exchange and settlement. But this does vary depending on the individual circumstances of the sale or purchase.
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Can I pull out of my sale/purchase?
You can withdraw from the transaction at any time before the exchange of contracts. But this means that if you have performed any searches or surveys, you still will be required to pay the costs of those.
Once contracts are exchanged the transaction is legally binding and both parties are committed to complete the transaction.
|TOP| What is an Exchange?
Exchange is the stage in the conveyancing process where the solicitors from the vendors side and the purchasers side meet to exchange the contracts of sale. The purchasers solicitor will give the vendors solicitor the deposit at this time.
Once contracts are exchanged, the sale is legally binding on both parties.
|TOP| What is a cooling off period?
The cooling off period is a special clause in the contract of sale that allows either party to pull out of the transaction within a certain period after the exchange. Generally both parties waive this clause and there is no cooling off period.
|TOP| What is Settlement?
Settlement is the day where the purchaser pays the balance of the sale money and collects the keys from the vendor solicitor and takes the title to the property. The solicitor acting for the purchaser organises the settlement.
|TOP| Do we have to pay a deposit?
All vendors require the buyer to pay a deposit and it is the vendor who decides on the level of the deposit. Generally most vendors have required 10% of the purchase price as the deposit. However, it is becoming more common that vendors will accept 5% as a deposit.
|TOP| When do I pay the deposit?
The purchasers deposit is handed over to the vendors solicitor when the contracts are exchanged.
|TOP| On my sale, when do I receive the proceeds?
On the day of settlement you receive your sale money from your solicitor. The legal fees and disbursements will be deducted from the sale money and you will receive a bank cheque for the balance.
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What are disbursements? Disbursements are the costs incurred by your solicitor in the process of organising your purchase or sale. These generally relate to title searches, surveys, pest and building inspections.
|TOP| When do I pay the Legal Fees?
For a Sale, the legal fees are deducted from the sale money at Settlement.
For a purchase the legal fees are including in the money you need to provide for Settlement and a separate cheque is drawn for this figure and paid at settlement.
|TOP| Where do I collect the keys from?
Once settlement occurs your solicitor will organise for you to pick up the keys from the agent.
|TOP| What is land tax?
Land tax is a tax imposed by most states and levied on rental properties. If your purchase is for owner occupied purposes, you will not be required to pay land tax.
|TOP| Do I get a reduction on stamp duty if I am first home buyer?
In some states stamp duty discounts are available. Conveyancing Canberra will calculate the stamp duty payable on all transactions for our clients.
|TOP| What is Mortgage Insurance?
Mortgage Insurance is an insurance that protects the lender, not the individual. Lenders sometimes require that borrowers pay for insurance to protect them if you default on your loan. They usually do this when borrowings exceed a high percentage of the value of the property.
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