Conveyancing Guide

The Vendor (seller) is required to have a Contract prepared before the property is marketed for sale. The Contracts is drafted by the Vendor’s Conveyancer. The Contract will include any special conditions that the Vendor requires together with the Vendor Disclosure Documents which are required to be attached to the Contract by law. When an offer is accepted, neither party is legally bound until such time as Contracts are signed and exchanged. This is when both parties agree to enter into the Contract, and the deposit is paid. If the land is defined as Residential Land, the Contract may be exchanged with a statutory 5 business day cooling off period. Alternatively the Purchaser’s cooling off period may be waived completely.

Exchange with a cooling off period

If the property is residential and the Vendor is agreeable to allowing the Purchaser to retain the cooling off period, Contracts may be exchanged quickly so that the Purchaser can secure the property and avoid what is known as being “gazumped”. The purchaser will then have 5 business days to receive advice as to the terms of the Contract, formal finance approval, satisfactory pre-purchase inspections, and otherwise be ready to be bound by the terms of the Contract unconditionally. If the Purchaser rescinds the Contract during the cooling off period for any reason, the Purchaser will forfeit to the Vendor an amount of 0.25% of the purchase price and both parties are treated as though the Contract never existed. Please note that there are certain circumstances where the Purchaser does not have the benefit of a cooling off period and advice should be sought from Stocker Conveyancing in this regard prior to signing a Contract.

Exchange waiving cooling off rights

Often the Vendor will require the Purchaser to waive the cooling off period so that the Contract is unconditional upon exchange. Accordingly, exchange should only take place after the Purchaser is satisfied as to the terms of the Contract, has received formal finance approval, satisfactory pre-purchase inspections, and is otherwise be ready to be bound by the terms of the Contract. The Purchaser’s Conveyancer is required to sign what is called a S66W Certificate, confirming that he/she has advised the Purchaser of the effects of waiving the cooling off period.

Exchange at auction

There is never a cooling off period when purchasing at Auction or Post Auction, under Auction conditions. Accordingly, it is imperative that the Purchaser receives advice on the Contract from his/her Conveyancer, satisfactory pre-purchase inspections and formal loan approval PRIOR TO THE AUCTION DATE. The successful bidder at the auction will be required to sign a Contract immediately and pay a 10% deposit. The Vendor should ensure that the Contract contains all required Conditions and that he/she can comply with the terms of the Contract prior to the settlement date.

After exchange of Contracts, the Conveyancers for each party will start preparing for settlement. This will include, amongst other things, undertaking and reviewing property searches, liaising with, and meeting the incoming/discharging mortgagee’s requirements, ensuring that all legal documentation is in order, ensuring that the terms of the Contract are complied with, drafting and reviewing settlement figures and arranging settlement with all parties including the mortgagee.

At the nominated time for settlement, the remainder of the purchaser price is required to be paid and all required financial adjustments are to be made. Vacant Possession of the property is usually required to be available at the time of settlement, unless the Contract provides otherwise. Settlement will take place electronically on the nominated ELNO platform, usually PEXA. Clients of Stocker Conveyancing will be invited to join the workspace to receive updates and supply relevant settlement information. All required documentation will be lodged electronically with Land Registry Services, simultaneously with the financial settlement taking place. Settlement is usually complete within approximately 30 minutes of the commencement time, and possession of the property is available to the Purchaser once settlement is complete.