When you are organising to go ‘under contract’ on a property, you must be aware of a few things.
Conditions on a contract are the first item to take account of. The standard conditions are cooling off period, finance and building and pest inspections. Cooling off period is five business days from date of contract. This cooling off can be waived through a PAMD Form 32a Lawyers Certification.
In the current financial market, finance conditions are taking on average between 7 to 21 days for completion. Building and pest inspections can be organised quickly and 7 days is sufficient. If you want to make an alternative condition, it is always worthwhile running it past your solicitor to draft for you.
Deposits are required to secure a contract. They can vary in their amount; however, it is advisable not to go above 10% of the purchase price. Here at Space, we advise using a deposit of 5% of the purchase price. Deposits can be paid in many ways, with the most common being by cheque or direct deposit into the agents trust account.
When all conditions have been met, the contract goes ‘unconditional’, which indicates that the property has been sold.
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