Guys, ive been just paranoid recently,
Im seeing professional broker tomorrow to confirm this however…
im buying an apartment (off the plan), ive been seeing a legit buyer solicitor, so the plan is, i sign a contract, the seller signs it as well.
Then i have to give 10% of purchase price as initial deposit before settlement, is this normal process?
thanks , this would be my first every home/apartment purchase, hopefully.
Thanks buddy.
I think 6 weeks are for settlement including 5 business days of cooling off.
one more thing make sure you are happy with the unit such as your solicitor has gone through the strata report etc and he said it's all good. you never know there maybe no money in the sinking fund or have an outstanding court case or have a big special levy comming up.
yep, the solicitor has gone thru the contract with me already :)
Not the contract, the Strata Report as to the status of the Owners Corporation.
[edit] read you are buying off the plan, so a bit hard.
all before you give the 10% deposit
Why have you not done your research before this point? It's not as if the info is not out there. E.g.
http://www.realestate.com.au/advice/need-to-know-the-process…
Not everyone is a high powered lawyer like you.
I've been involved in over 30 property purchase transactions and still need a lawyer to go through the fine print
The point is that while OzB might be a place to get some comforting words, if something goes pear-shaped during what is probably the largest purchase of your life, nobody here really cares that much. It's​ always prudent to do your own planning to know what's going on.
Never mind, OP will be taken care of by the solicitor and consumer protection is relatively strong in this country compared to others.
I do it too but I will ask the question to a few different avenues so I can get different views and opinions.
Then I can further progress in my decision process
This is normal, your solicitor will explain all the conditions of the contract and procedure to complete the purchase. Usually this meeting is about one hour, make sure you ask all the questions, just ask, you're paying them to answer your questions, no matter how dumb they might be.
Paying 10% sounds like you're buying off the plan (OTP), your stamp duty will be due in 15 months if you are in NSW. Pay attention to sunset clauses. Make sure you have pre-approval in your incoming mortgage.
damn you guys are too good.
that's correct am buying OTP.
yes i have pre-approval and yes you're right abt questioning the solicitor.
If you are buying off the plan i would negotiate for a 5% deposit. Delays, builders in administration etc are all common issue so best not have your funds tied up
The developer is a high profile and has good rep hopefully wont disappoint me, I still will consider less deposit.
The deposit is negotiable, you can pay as little as 1% if both parties agree.
thanks considering it
Before pay your deposit, make sure you got the actual plan and pre-approval from the lender ready.
Deposit is usually around 5%.
Yes done that thanks
Thanks, one more thing i'm buying thru an agent, how do I make sure Im dealing with a actual seller and the contract is legit?
Can i contact them (how) to confirm the purchase?
I do have solicitor but still you never know…
That's the job of your solicitor.
I would consider asking the developer for a bank guarantee for the deposit. Even if you may have to pay for the cost of it.
Buying OTP means that you will not settle the title for 12-18 months. Developers can and do go belly up. And if that happens without a bank guarantee you lose your deposit.
Check your LVR. Some banks won't lend above 80% due to high risk apartments on east coast (Gold Coast, Sydney, Melbourne). Apartments are considered higher risk by the banks due to extreme highs/lows they reach during cycles. Many people have predicted a recession in the next 3yrs for Australia, and the banks have tightened their lending as a result.
yep all normal but if you back out after you give this deposit you forfeit the money, and they are not allowed to sell the unit to someone else either now. your 6 weeks cooling off period should start too.