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Comparison of buying process between states?

Discussion in 'The Buying & Selling Process' started by mouseburger, 30th Apr, 2016.

  1. mouseburger

    mouseburger Active Member

    Joined:
    20th Jun, 2015
    Posts:
    44
    Location:
    ACT
    Does anyone know of online info that compares the buying process between states & territories?
    I've only bought in ACT, where for example, B&P report is supplied by seller and offers can be made by sms. Not sure how things work in other states or how much variances there is, so was wondering if there are websites that summarise the differences between states, as my first IP purchase will likely be interstate.
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,583
    Location:
    Adelaide, SA
    South Australian purchasing method

    0. Arrange finance through your preferred mortgage broker

    1. Inspect the property and then call the agent afterwards to negotiate a price you can agree on.

    2. Some agents will make you fill out an offer form and if accepted go to sales contract, some agents go directly to sales contract which you sign at the bottom and initial all pages and send back to them. On the conditions section, make it subject to finance if you need (but not building and pest, see step 5). Sometimes it’s best not to make subject to finance too, so that your offer appears stronger than other peoples but only do this if you’re very sure you can get finance.

    3. If the vendor accepts it, they’ll sign the same contract and scan/copy it back to you. You’ll need to give this to your conveyancer and mortgage broker

    4. The agent will send you whats called a Form 1. This is a documentation package of all the title searches, council/water information, encumbrances, easements etc. You need to read & sign this and return it to him. This is similar to what conveyancers do in other states but here the sales agent provides it.

    5. You have a cooling off period of 2 clear full business days from when he sends you Form 1. This is when you do your Building and Pest inspection. If it comes back bad, then you can pull out of the deal utilising the cooling off period at no cost if you wish. For this reason, you don’t need to put it as a conditional in your contract, because you get to exit anyway. Note that the vendor does not have a cooling off period, only the buyer does and for this reason gazumping is not possible here.

    6. When you’re willing to proceed, ask the agent for his bank details so you can pay deposit and get a receipt. Deposit can be any amount and is not a fixed percentage like in NSW. In the past I’ve used $5k, $10k, etc. Some will ask for enough to cover their sales commission, in case their vendor doesn’t pay but I think its silly since its just going to sit in their trust account anyway.

    7. Organise finance with your mortgage broker

    8. Wait til settlement (42 days is common, but can be 30, 60 or 90 depending on what you negotiate)

    9. Give your favourite PM a call to arrange tenants. Possibly even during settlement so that they can line tenants up for you ready for day 1 so you begin collecting rental income.
     
    mouseburger likes this.
  3. mouseburger

    mouseburger Active Member

    Joined:
    20th Jun, 2015
    Posts:
    44
    Location:
    ACT
    Thanks for the SA info @D.T. Some interesting differences there. In ACT, buyers can get the sale contract first (which includes B&P and the sort of information you'd get in a Form 1) before inspecting a property. From memory, exchange of contracts goes through the solicitor/conveyancer, the cooling off period is 5 days after exchange of contracts and the deposit is 10%.
     
    legallyblonde likes this.
  4. SmashedEconomy

    SmashedEconomy Active Member

    Joined:
    26th Feb, 2016
    Posts:
    42
    Location:
    Brisbane
    You are wasting your time asking this online- you will never get the full nuances of the differences. My howto for selling in Qld is 3 pages long.. You wont get 21 pages of doumentation here and a comparison of all the 7 states.

    Just find out the process at the time, in whatever state you are in. Even a lawyer takes a while to get good at conveyancing in his chosen state.
     
    Bryan Loughnan likes this.