Newbie Question: what happens once your offer is accepted?

Hi all,

I want to cover off a really basic question: what are the next steps once your offer is accepted? What clauses around settlement etc are worth negotiating/using as sweeteners?

eg:
1. Submit offer
2. Offer accepted
3. Organise pest/building inspections (Etc, I have no idea).

Can you still get sharked during this time etc?

If there are threads addressing this please let me know.

Thanks in advance!

 

Is this nsw? Each state is different.

 

First thing learned! The property in question is QLD. Do states differ hugely in this regard or minor things?

 

Dont think about minor or major, just assume everything is different. First thing is to get a solicitor in the state and ask them what the process is.

 

Once the offer is accepted it's *usually* too late to negotiate on settlement time frames etc as these would've (or should've) been included in the offer...
eg offer would be $x subject to 21 day finance clause, 14 day building and pest, and 42 day settlement
Not sure what you mean by "getting sharked" can you explain?
As Trainee mentioned, best to get a solicitor asap
Edit* you will be able to negotiate if no time frames have been agreed yet and hasn't progressed to a signed contract

 

Thanks for this!

Getting sharked - can someone come in and offer more and you can be rejected by the owner even though you have a contract?

 

Next part of the question is what are the common time frames people use on finance, building and pest and settlement?

If I have pre-approval for a loan how long can I expect a loan to go through?

 

Ahh ok, generally no that can't happen once you've got the contract.
Although certain things can happen that can allow the seller to revoke the contract ie. you can't make the finance clause or settlement clause etc but I'm not a solicitor so best you ask them how likely those things happen.
Or hopefully someone more across the legal side of things will answer here for you.

 

Finance clause is generally 14 - 21 days
Settlement 30 - 42 days (30 days doesn't leave much room for delays, so go for a bit longer)
Building and pest inspections 7 - 14 days
Really depends on the lender, most pre-approvals aren't credit assessed
Which lender?

 

Thanks for your response. How do you get access to do pest/building inspections prior to getting a contract?

 

You engage the contractor to provide these usually prior to making a offer, maybe subject to. The vendor and agent dont hand you a copy

 

You want to have everything ready to go BEFORE you make an offer - including a building/pest inspection you're happy with, deposit ready and available (be aware that you can't necessarily just transfer a large sum of money and may need to pre-warn your bank), pre-approval of mortgage, an understanding of what conditions you are making the offer subject to (ie. inclusion of any chattels/timeframe of settlement), and what your negotiation limits are.

Once the offer is accepted you sign the paperwork and begin the settlement process via your conveyancer/settlement agent (you can DIY but highly recommend so you don't miss anything, at the end of the day it's a relatively small cost). Good luck!

 

And access to a deposit and paying the duty.....Easily overlooked and a issue at the last moment. Its not easy to move $50K+ etc even with 24/7 online banking. All sorts of security limits can hamper movement of money. Dont forget a bank cheque can still be a simple way to do this and despite its fee it can be easier and safer than transfers

One of the benefits of using a solicitor is their trust account. Its insured against fraud etc by the Fidelity Fund. Conveyancers dont have anything like it. Its reason why moving money several days ahead of time need not be a concern.

 

A bit of preparation can help a lot. Bring all your id and expect to go to a bank branch to do the transfers.

 

There is a cooling off period if things don't look great

 

My question is relating to the Building inspection and deposit in the contract. Under special conditions ,should I state "This contract is subject to and conditional upon a satisfactory building inspection " .within 14 days. If for example I find rising damp and wish to terminate ,will i be able to do so? even though it is not a structural defect . Is that permitted ?
Secondly. After paying $500 when the initial offer is made . When should I pay the balance of the 10% deposit ?

 

Y mans method is best - get the inspections done and then you know what you are actually buying. This gets rid of much of the uncertainty. The ACT system where the vendor provides an up to date pest, building and thermal rating reports plus title search (paid for by the purchaser on settlement) makes it easy to put in an appropriate bid very quickly. I read the reports and then do a thorough check myself to confirm the reports.

You are only safe from sharks once the contract is signed by both parties and the deposit paid.

Also think carefully about what is included or not - eg curtains and blinds, etc. Some things you may want to keep,others you will want gone.