What Happens Now?
Frequently Asked Questions:
What happens to the contract for sale after I have signed it?
Once a sale has been agreed to by both the buyer and the seller, and the Contract For Sale has been signed by both parties, then each party is given a certified copy of the document, and each party’s solicitor.
Tasmanian law requires property transactions to be in writing.
When do I need to contact my solicitor?
You should contact your solicitor before you sign the contract if you are in any doubt as to the contents of the contract. Otherwise, you should contact your solicitor as soon as possible after you have signed the contract, and you should confirm your instructions to us so that your solicitors can act on your behalf in the purchase.
As the property consultant, do you contact my solicitor and tell them I have purchased a property?
We will formally contact both parties’ solicitors and forward them a certified copy of the sale documents as soon as possible after the contract has been signed by all parties. We will also advise them of the amount of the deposit, which has been paid, and the name and address of the solicitor who will be acting for the seller.
What happens to the deposit money once they have been paid?
We will always issue a trust account receipt for all deposit monies paid to us. These monies must be banked into an official trust account on the day they are received or by no later than the next business banking day.
Very strict government controls apply to trust monies and annual audits are carried out on all trust monies received by a property consultant. Severe penalties apply for any breaches of trust account procedures. No interest is earned on monies held in trust accounts.
What happens if a condition of the contract is not satisfied?
If a condition of a sale is not satisfied (e.g. finance is refused) your solicitor must, within the time period specified in the special condition, advise the seller or his representative in writing to that effect. Your solicitor must request an extension of time for any special condition to be satisfied or exercise your right not to proceed with the sale. If a sale falls through due to a condition not having been satisfied, and the purchaser has used all reasonable endeavours to satisfy it, then the contract is at an end.
If I am buying the property subject to obtaining finance, will the lending institution need to inspect the property?
The lending institution, providing the necessary funds to a purchaser to assist in their purchase of a property, will normally require their valuer to inspect the subject property to ensure that sufficient security is available against the loan being sought.This process usually involves the valuer carrying out an inspection of the sold property and an appointment for this inspection is normally arranged between the valuer, the property consultant and the owner at a mutually convenient time. It is important that the owner co-operates wherever possible with the valuer to fast-track the valuation, as any delays may lead to a delay in the approval of the finance for the purchase.
Why would a purchaser want to measure the dimensions of the property after they have bought it?
Once the purchaser’s solicitor has carried out a title search on your behalf, they would normally ask them to measure the dimensions of the land. This is so that the purchaser can satisfy themselves that the dimensions of the land shown on the title agree with the dimensions of the land that has been purchased, and boundaries and fences are in the correct position.
What does it mean when my purchase becomes unconditional?
The purchase of a property is said to be unconditional once any conditions attached to the contract (e.g. subject to finance or subject to the sale of the purchaser’s existing property) have been fully satisfied.
Is the purchaser entitled to a final inspection prior to settlement?
The purchaser is entitled to expect the property to be presented in virtually the same condition as it was when it was purchased and with all included chattels in place when they take possession of the property following settlement. Many solicitors acting for the purchaser will recommend a final inspection to their clients one or two days prior to settlement, to enable them to satisfy themselves that all is in order.
When does the purchaser need to insure the purchased property?
Once the Contract has been signed by all parties and becomes unconditional, the purchaser is advised to place a cover note on the property until settlement has taken place, then full insurance including contents should be obtained to ensure full cover is placed on the property. In the case of stratum title, you will need to establish which insurance company has insured the other units as part of the stratum plan and contact them.
What happens to the keys to my new property at settlement?
Legally the purchaser is entitled to vacant possession and will require the keys to the property they have purchased as soon as settlement has taken place. In almost every instance, the property consultant holds a key or a set of keys to the property during the marketing period and these are normally retained so that we can arrange inspections by the valuer and final inspection by the purchaser, if required. Sometimes the seller’s solicitors hold the keys. These keys are handed over to the purchaser only when the seller’s solicitors have confirmed settlement. Under no circumstances can keys be given to the purchaser until settlement has taken place or until we are otherwise specifically instructed to do so by the seller or by their solicitor. Any extra sets of keys, which the sellers hold, are either handed to their solicitor to be handed over at settlement or they are left inside the property.