The Buying Process

PURCHASING A PROPERTY

A residential property is usually purchased in one of two ways:
At auction or by private sale

In either event you will be asked to sign a Contract of Sale (or Offer and Acceptance in Western Australia). With the Contract of Sale there may also be a Vendor's Steatement. In this statement you may find information concerning:

• Rates and other outgoings;
• The zoning of the property, ie. the purposes for which the land may be used;
• Any notices, caveats or mortgages that may effect the property;
• Interests in the property, e.g. whether there are plans by transport authorities to construct new roads on or near the property.

Purchasing a property by private sale

If you purchase by private sale you will be asked to sign a Contract of Sale. However, at a private sale it is possible to make the contract subject to certain requirements being met. A
common condition is that the contract is subject to the availability of finance. Even with this 'safety net' it is still advisable to have your finances in order prior to making a commitment. You also generally have a cooling off period.

Purchasing a property at auction

If you purchase at auction you will be asked to sign an unconditional Contract of Sale. This means that once you have signed the contract it is very difficult for you to back out of the purchase. Therefore, it is essential that you:

• are sure that this is what you want;
• know what finance is available to you;
• know when the funds are available.

Always keep in mind that there is no cooling off period at auction. Usually you are required to pay a deposit immediately, either by cheque or deposit bond.

Generally you can't recover the deposit if you back out of the sale and there may also be other legal ramifications.

OBTAINING FINANCE GUIDE FOR MOST LENDERS BY MANUAL SUBMISSION