After the sales contract is signed.
There’s a sense of jubilation that comes with having your offer accepted for a property, but there’s also a lot that happens between signing a sales contract and settlement.
So, let’s walk through what you need to do as a buyer after the sales contract is signed.
Pre-purchase inspections
If you haven’t had your pre-purchase inspections conducted prior to making an offer, now’s the time.
Chances are the contract will be subject to pest and building inspections, so engage these professionals as quickly as possible to undertake the inspections required.
Both a pest inspection and a building inspection are highly recommended as they can identify issues that may not be immediately obvious within a property, such as structural issues, hidden mould and damp, or nasties which can do real damage to a home including termites and ants.
Finance
Once the contract is signed, the clock starts ticking down to settlement, and one of the key elements the buyer needs to quickly get sorted is finance.
With any luck, you have already spoken to your lender and have pre-approval, but regardless, now’s the time to start working with your chosen financial institution to ensure finance will be in place by the required deadline.
As part of obtaining finance approval, your lender may also need to value the property.
There can also be delays to obtaining finance due to high demand and other unforeseen circumstances, so the sooner you begin the finance process, the better.
Legal advisor or conveyancer
There are multiple legal aspects to purchasing a property and these are generally handled by your chosen legal representative or conveyancer.
Ideally, you will have selected your chosen representative prior to signing the contract, as they are the professional who will guide you on any clauses which should be included and assess the document for any anomalies.
Your legal representative will then assist throughout the settlement process, ensuring everything is on track and all boxes are ticked, including any required due diligence about property titles, covenants and more.
In addition, your legal representative will liaise with the legal team representing the seller. Together, they will seek to ensure there are minimal delays, that all conditions are upheld by both parties, and that any timeframe extension requests are made properly.
Insurance
A property is a huge financial asset, and as such it should be insured. In fact, adequate insurance is often required by the financial institution that provides the mortgage for your property.
But the reality is when it comes to the date the buyer should obtain insurance by it differs depending on what state you’re in.
For example, in some states the buyer is responsible for insuring the property when it officially changes hands on settlement day, but in Queensland the buyer should have insurance in place by 5pm on the day after the sales contract is signed by both parties.
You should check your relevant state or territory law to clarify when that insurance should be in place.
How we can help
If you’re considering buying or selling a property, why not chat with one of our friendly agents to understand the state of play in your local market?
We’re not just about property, but the people and the stories behind it. You can also view our list of currently available properties here.
