After you have successfully negotiated the successful sale price, along with agreeing to the terms and conditions, it is time to get the Contract For Sale under way.
Your agent will send a sales advise to your Solicitor/Conveyancer which sets out the agreed terms and conditions. The Solicitor/Conveyancer will complete the Contract details to reflect the agreed terms & conditions and issue a copy of the Contract to the purchasers Solicitor/Conveyancer for review.
Your Solicitor will then request to see you to sign your Contract and prepare for exchange of Contracts. Exchange of contracts occurs once both the sellers signed Contract and the buyers signed Contract are swapped & dated. This is when your agreed deal becomes legally binding by the terms & conditions set out in the Contract.
Up until exchange of Contracts both parties can withdraw from the agreed sale at any time without penalty. Either party hasn’t legally committed to sell or purchase the property so it’s important all parties work towards exchange of contracts in a timely manner. For sellers the risk is the buyers can walk away, for the buyers the risk is another buyer will offer a better price or terms to the seller.
In my market place, the majority of offers are conditional offers which mean once Contracts have exchanged the contract is still subject to the agreed conditions. These may include things like finance, swimming pool inspection, pest inspection or building inspection or strata records inspection. Generally, the buyer will have between 7-14 days to complete these searches. Once the conditions are satisfied your contract becomes unconditional and you can begin to arrange your move.
A cash unconditional offer means your buyer doesn’t need to add any terms & conditions to your Contract. This will ensure once your Contract is exchanged it is only subject to the standard 5 day cooling off period. If the buyer elects to waive their right to a 5-day cooling off period their Solicitor can issue what is known as a section 66W Certificate which waives their right to a cooling offer period.
Once your contract is unconditional your property can be marked as sold and you can begin to prepare for your move.