Buyers Tips
Most properties in Sydney are offered for sale through real estate agents. Buyers should be aware that these selling agents are contractually obliged to represent their vendors' best interests at all times and to get the highest possible price for their properties. They work for the seller. On the other hand Property Buyers Agents like Sydney Property Buyers Agents represent you - the buyer. With over 20 years experience in Sydney Real Estate we are here to help you find the right property.
What is an exchange of contracts?
An exchange of contracts is where the purchaser gives the signed original to the vendor or their solicitor and the vendor also gives a signed counterpart to the purchaser or their solicitor. The signing and the exchanging usually takes place in the listing real estate agents solicitor's office or, if the property is purchased at auction, in an auction room. A deposit is usually paid at the time, usually 10% of the purchase price.
What is the cooling off period?
The cooling off period is when the purchaser decides to withdraw from a contract up to a limited amount of time after signing. This is for a period of up to 5 working days following the signing of a private contract.
Exceptions are:
- if the property is sold at public auction
- if the property is passed in at auction, but sold on the same day
- if the contract is signed after, exercising an option to purchase the property
- the purchaser gives the vendor a certificate drawn up by the purchaser's solicitor detailing that the solicitor had explained to them the meaning of the contract
If the cooling period is exercised by the purchaser, they forfeit to the vender 0.25% of the purchase price.
What is For Sale by Private Treaty?
Private treaty is the sale of a property which does not take place by auction or tender. This does not need to involve a real estate agent.
For sale by private treaty is where the owner of the property and their agent agrees on a price and places the property on the market. This property is then usually advertised for that price and prospective purchasers are shown through.
An offer can then be made on the property which can be accepted or rejected. Negotiation can then take place until an agreed price has been achieved.
What is For Sale by Auction?
At an auction, a property is offered for sale at a certain time and place and can take place on site or in an auction room. A reserve is placed on the property and if the reserve is reached the property will then sell to the highest bidder. This reserve price is not made public. The auctioneer only has the authority to sell the property once this reserve is met.
Usually a 10% deposit is paid then and there, unless a lesser amount has been arranged prior. If a property is being promoted as an auction it is still possible to purchase prior to auction if both vendor and the purchaser agree to the terms.
What is Settlement?
A Settlement date is the date the purchaser officially owns the property. The complete of the sale is normally 42 days from the exchange of contracts. A longer settlement period can be arranged if agreed to by both parties. Sometimes a purchaser requires more time in order to sell their property or the vendor may need more time to purchase another property. At settlements, the purchaser will pay the full purchase price less the deposit paid previously. This is usually handled by the respective solicitors.
How much is Stamp Duty?
Please visit http://homesearchsolutions.com.au for details.
First Home Buyers Information
There has been an increase in the thresholds for First Home Plus from $500,000 and the phasing out at $600,000 for the purchase of a new or established dwelling in NSW and an increasing in the threshold for the purchase of land anywhere in NSW from $300,000 and phasing out at $450,000.