Buying Property for Cash - What You Need to Know!

Discussion in 'The Buying & Selling Process' started by pjames, 2nd May, 2017.

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  1. pjames

    pjames Well-Known Member

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    When you pay cash for property then how long will it take to settle and what other things should one know before purchasing real estate in Australia for cash (most likely NSW but not sure yet)? When I say cash I mean the money would be cash in my bank account that would be transferred to the vendors account I would assume! There would be no finance involved.
     
  2. Jebi6a

    Jebi6a Member

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    I just purchased a property not long ago with a 14 day settlement (Cash). Usually the lowest standard is 30 days in Aus, but if you go with Cash, you should be able to shorten if the house is vacant and you/vendor have a good conveyancer/lawyer ready to handle the settlement quickly.
     
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  3. JohnPropChat

    JohnPropChat Well-Known Member

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    I've seen plenty of contracts with 21 day settlement for cash purchases. You still want to work in a proper B&P satisfactory to the buyer or some other clause as a way out in case something comes turns up.
     
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  4. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    It's mostly just the conveyancing process you need to go through. It could be done in as little as a week, but it would be fairly tight. A fortnight would be easier. Just follow the lead of your conveyancer.
     
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  5. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Depends on the efficiency of the conveyancers (yours and the vendors) and whether the vendors have to discharge a mortgage.

    In theory - you could have it done in a week. In reality - there's probably finance securing the vendors property and if they haven't already sent in a discharge form then that will prob take 3 weeks to be processed.

    Cheers

    Jamie
     
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  6. Luke T

    Luke T Well-Known Member

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    ideally you want 21 days just in case as there are usually delays with little things even in a cash deal !
     
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    A solicitor should be assisting this to avoid issues with fraud or mistake. Bank settlements are rigorous to protect the bank and yours should be no less careful.
     
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  8. melbournian

    melbournian Well-Known Member

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    I have done this before, no different to any other sale - solicitor or convenyancer and you hand in the bank cheque (for x amount to the vendor and banks if under mortgage, council etc). The solicitors meet up and exchange and confirm settlement. If you are worried, ask to tag along to see the deal done. normally where the vendor bank if any (is located).
     
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  9. Perthguy

    Perthguy Well-Known Member

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    I have done this. It's no different to with finance really, except you get a title at the end of settlement. In WA, it is a paper title, I don't know about NSW.

    Same process: engage a conveyance to review the contract, make an offer and have it accepted, building inspection etc, ask your conveyancer to book in settlement.

    In my case, I transferred all funds to the conveyancer's trust account.

    Edit: and the whole process took about 6 weeks from memory. It was a difficult settlement as there were 3 caveats on the property and it was subject to a Sale (or Seizure) Order. The delay was for the vendor's conveyancer to organise the paperwork to have these removed.
     
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  10. abbyfresh

    abbyfresh Well-Known Member

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    In reality even if your cash is ready to go you are still pushing to settle in less than 21 days as there are all these other legal variables and hurdles you can't control.
     
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  11. DaveM

    DaveM Well-Known Member

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    Yep, especially if there is an outgoing mortgage on the vendor
     
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  12. pjames

    pjames Well-Known Member

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    thanks all, so what about solicitors, does it still cost the usual $1000-$1200 + searches for a few hundred? or is it much similar and cost less?
     
  13. Perthguy

    Perthguy Well-Known Member

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    Mine charged the same. It's the same amount of work.
     
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  14. flinderln

    flinderln Active Member

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    Hi PC community,

    Can somebody elaborate it more for VIC please.
    Is there any thing that I need to do or know with but in cash before bidding or putting offer?
    I am going to buy for cash and this is my first buy appreciate your comments.
    Also is this going to be an advantage when negotiating price?
    I am targeting at north burbs.
    Thanks
     
  15. Trainee

    Trainee Well-Known Member

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    It means you can offer without a finance clause.

    Better question: why buy for cash?
     
  16. flinderln

    flinderln Active Member

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    Thanks for reply.
    Is it good from seller perspective if they go on private sell and take property out of auction?
    I mean do I have better chance when I put offer?
     
  17. Trainee

    Trainee Well-Known Member

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    Not really, since an auction contract will be unconditional.
     
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