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After you have found a home you are comfortable purchasing, you should have made an offer and obtained a copy of the Contract for Sale of Land. At this stage, you should also have made enquiries as to your finance or obtained approval of some sort from a financier.

Holding Deposit
It is a common practice of Real Estate Agents to request a "Holding Deposit" of 0.25% of the agreed purchase price. In doing so, Real Estate Agents often promise that they will keep the property off the market and not sell it to anyone else. While a Holding Deposit is a gesture in good faith towards the transaction, it is not a legally binding obligation.

Building and Pest Reports
While you are now in a position to make your purchase, you should not rush the transaction. In addition to having a closer look at the contract, you should consider engaging professional reports to assist you with your purchase. The more common reports that are obtained are Building Reports, Pest Reports, as well as Strata Inspection Reports. These reports all deal with the physical aspects of the property, and may assist you by providing you with better information about your purchase.

Exchange
Once you are comfortable with proceeding, you can sign the copy of the contract that has been provided to you. You will then give your copy of the contract to the vendor, and in turn you will receive a contract that is signed by the vendor.

Exchanging the contract may take place through the real estate agent or your solicitor. This action initiates the contract, and makes the obligations contained within legally binding. Furthermore, on exchange it is normal for you to pay a deposit in accordance with the contract.

Once you sign and exchange the contract, you may not be able to amend or change it!

Cooling Off
By law, contracts for the sale of residential property are subject to a cooling-off period. Unless you have waived this right, or amended it to a longer period, you usually have five business days to change your mind. Should you change your mind or terminate the contract within this period of time, you will have to forfeit 0.25% of the agreed purchase price.

Once the Cooling Off period has expired, you are well on your way to owning your property!

What should you do?

At PHANG LEGAL, our experienced property lawyers are able to put your mind at ease and guide you through the conveyancing process from start to finish. If you require competitive fixed fee conveyancing services, including preparing a Contract for Sale of Land, then you must call us on +61 2 9687 8885 to discuss how we can best assist you or visit our website at www.phanglegal.com.au for more information regarding our practice.

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Kenneth Ti
Associate Solicitor

PHANG LEGAL
www.phanglegal.com.au

About Phang Legal

PHANG LEGAL is a progressive and dynamic law firm offering a different attitude to the practice of law and a different approach to the delivery of legal services. The firm continues to honour the traditions and standards of the legal profession, while remaining current and relevant to ever changing client requirements and expectations. PHANG LEGAL provides cost effective and practical solutions across a wide range of practice areas including conveyancing and property law, corporate and commercial law, litigation and dispute resolution, wills and estates (elders law), family law and relationship disputes, legal aid and criminal law, and notary public services.

6/83 George Street, Parramatta NSW 2150
PO Box 1375, Parramatta NSW 2124
Telephone: 02 9687 8885
Facsimile: 02 9687 8883
Web: www.phanglegal.com.au