Buying Process in Queensland

Confession: I'm not totally sure when you guys throw terms like "go unconditional" and "settlement", what do they actually mean in the overall scheme of buying.

What is the process when you find an IP you would like to purchase?

I think it's something like this from the bits and pieces that I've read on the forum. But I'm probably off the mark

- Select a solicitor

- Ask REA for Offer document.

- Work out the conditions to put in the Offer (can be done prior to shopping trip. Work these out with solicitor?)
-- Finance - Subject to finance approval
-- Subject to building and pest inspections
-- ?

- Determine milestones/deadlines in the buying process. Speak to mortgage broker about finance deadline

- REA shows Offer to vendor.

- If Vendor accepts, put in minimal deposit

- Get B&P done

- If B&P report is a go-ahead, next step??

- If B&P report is a showstopper, terminate Offer in writing

- Finance process starts?

- ??

- Final inspection

- ??

- Get keys to the IP

 

It sounds about right - but with the "Offer Document" not every RE uses this. Most request a signed contract before they put the offer to vendor. Don't let this spook you, it's pretty common.

With finance though, as soon as your offer is accepted, notify your broker - they'll know how long your application will take so will be able to work with you in the timeframe available and advise you if they need more time.

 

As an agent i would never accept an Offer Document to present to a Vendor.

Put the Terms of your offer in writing by way of a signed Contract and it carries a lot more weight.

Also remember that the finance and B & P time clock starts as soon as the Agent has conveyed "Acceptance" to both the buyer and the seller and the executed contract may not turn up for a day or so.

Need to make sure your advisers are on their toes.

Cheers


Richard

 

@Kael and @Richard Taylor thanks. The offer part is different from WA. Over here we fill up an Offer and Acceptance Form provided by the REA to get the ball rolling.

Sounds like you need your conveyancer to prepare a contract prior to "shopping" in Queensland. Just in case you want to snap up something that looks good.

 

The WA O&A is pretty much the same as a QLD contract of sale for all intents and purposes. As mentioned, as soon as you have a signed contract, let your broker know as the finance clause starts the minute the contract is signed by both parties. If you wait for your B&P to come back you'll struggle to meet your finance expiry.

 

Just to clarify, which side prepares the contract, does they vendor organise one based on your requested conditions via the RE agent or does the buyer's conveyancer write one up based on conditions etc? I'm just finding this area a bit confusing as in Victoria you have the Section 32 as part of the contract and it's all drawn up by the vendor's solicitor/conveyancer.

 

What do these mean, and which part of the process are they?

"Go unconditional"

"Settlement"

 

My definition

Go unconditional - when all clauses are met and you no longer have legit reason to pull out, e.g. You have finance approved and satisfactory B&P

Settlement - pay vendor, get your keys, property officially yours! Final step

Just my definition tho

 

I'm in same boat - when I've wanted to make an offer to a RE agent in Brisbane, they requested my details and then put them into the contract, emailed them across to me (or when I was there on the day I got it in their office). Once I had it, I was able to send it to my conveyancer and ask them questions I had or they would give it the okay, then I would sign. Bare in mind though - others could put in an offer while you're doing this, so in a hot market, time is of the essence.

 

The updated buying process, based on feedback. There are still gaps in the process. Hope someone could clarify.

- Select a solicitor prior to IP hunting. Work out general conditions for offers.
-- Finance - Subject to finance approval. Speak to mortgage broker about finance deadline
-- Subject to building and pest inspections
-- ?


- Provide REA with details. REA puts them into Contract.

- REA presents Contract to vendor.

- If Vendor accepts, put in minimal deposit

- Get B&P done

- If B&P report is a showstopper, terminate Contract in writing

- If B&P report is a go-ahead, next step??

- Finance process starts?

- ??

- Finance is approved

- Solicitor undertakes all the background work such as title search etc

- Contract goes unconditional

- Final inspection

- ??

- Settlement. Get keys to the IP

 

Contact is unconditional when finance is approved and B&P/any other conditions is signed off.

Ideally finance starts as soon as vendor signs contract.

 

Copied & pasted from Somersoft, by @knightm

http://somersoft.com/forums/showthread.php?t=100568

• Select a Solicitor (in the relevant state of the property)

• Review the short list of properties and do a cash flow analysis on the best property(s). Decide on a target property to begin with. Consider initial offer price and maximum potential purchase price.

• Begin negotiations and submit offers. Remember the best offers are usually submitted in writing

• Pay any agreed deposit to accompany your offer. Remember this is paid to the selling agent?s trust fund, if the property purchase does not proceed then you will be refunded. Providing a deposit lets the vendor and the selling agent know how serious your offer is and often gets the property at a better price. Depending on the state there may be a non-refundable component for exiting the sale under the cooling off terms (in NSW its 0.25% of the purchase price)

• Continue negotiations as required.

• Your offer is accepted.

• Forward a copy of the contract to your Solicitor to begin title and strata searches

• Sign any contract documents that have not yet been signed.

• Contact Insurance Broker/Company. Arrange building Insurance (for NON strata properties ie houses) and landlord/contents Insurance (ALL properties). Remember if a property is damaged after you have signed a sales contract you can be deemed the current owner so its important to insure your property BEFORE settlement.

• Forward a copy of the contract to your Broker so they can request a valuation.

• Select a Building and Pest Inspector

• Request an inspection conducted to be fully aware of any structural or pest issues. Note: Most building inspection services require payment in advance of sending the report.

• Receive Building and Pest inspection report back ? review the report and discuss as required.

• Provide any final paperwork to your lender as required by Broker

• Valuation is completed.

• Receive advice of formal financial approval.

• Liaise with Solicitor to advise that Building/Pest/Finance conditions are met and no concerns from Solicitor regarding title and strata searches. (Note: if concerns are raised these may require repair or renegotiation, if major concerns are raised then this is the opportunity to EXIT the purchase)

• Request Solicitor to proceed to unconditional exchange

• Unconditional exchange occurs. Both the buyer and seller are now legally committed in the buying process.

• Receive mortgage documents from lender. Sign and return these to lender.

• Settlement date is booked between Solicitors and Lenders.

• Your Solicitor will advise of the amount of money owing at settlement. This will include stamp duty, council rates adjustments, legal fees, mortgage fees etc. It will resolve depending on the balance of deposit already paid with the offer. You need to ensure enough money is available and sent to your solicitor several days in advance to ?settle? the property. (Solicitor can help)

• Settlement occurs! You now own a property, congratulations.