Now more and more people understand the importance of buying a house. Whether you are buying an investment house or a self-occupied house, it is very beneficial for you to understand the real-time real estate policy in depth as well as the precautions for buying a house in advance. At the same time, it increases your confidence and efficiency in buying a house. After reading this article by Realtisan, you will have a better understanding of the process of buying off-the-plan properties in New South Wales, Australia.
Two Types of Off-The-Plan Contract
There are two types of contract for off-the-plan properties – single contract and two contracts. In this article we will be discussing single contract for off-the-plan properties.
Single Contract Purchasing Process
- Step 1: Expression of Interest – The buyer usually needs to pay a certain amount ($5000) to express their interest in the property. The earlier the buyer puts down the money, the earlier they can choose the desired floor plan. The buyer can get fully refunded if they decide to withdraw.
- Step 2: Holding Deposit – After choose the property, the buyer will agree to move forward by putting down deposit. Usually EOI can be transferred to deposit.
- Step 3: Sales Advice – Sales agent will provide Sales Advice including property details, buyer’s detail, and sales’ solicitor detail.
- Step 4: Issue Contract – Sales Advice sends to buyer solicitor to issue contract.
- Step 5: Sign Contract – Now is for both parties to sign the contract. Usually buyer would sign first, then send to vendor for signing.
- *S.66W – a certificate signed by a buyer solicitor which has the effect of waiving the purchaser’s 5 business day cooling off period.
- Step 6: Contract Exchange – Congratulations! Now you are half way through the purchasing process. Contract is signed by both parties. The date of Contract Exchange Date is counted from vendor signing date.
- Step 7: Stamp Duty – Starting from contract exchange date, buyer needs to pay Stamp Duty (4%) within 3 months.
- If the buyer is purchasing a property for self-occupying purpose, buyer solicitor can apply to pay Stamp Duty in 15 months.
- If it is an investment property, the buyer must pay in full within 3 months from contract exchange date.
- If the settlement of the property is earlier than 15 months, buyer needs to pay the Stamp Duty in full as property is settled.
- Step 8: Strata Plan registration – Vendor or builder needs to submit strata plan to council for registration.
- Step 9: Home Loan – A home loan is an amount of money lent to an individual borrower by a bank or other loan provider, in order for that individual to finance the purchase of a property.
- Step 10: Settlement Pre-inspection – Since it is off-the-plan property, buyers will be given the chance to pre-inspect the property after it is done.
- Step 11: OC& Strata Plan Registered.
- Step 12: Handover – Congratulations! Now you are completed with the purchasing process, and enjoy your new home!
- Notice that, given the nature of Off-the-plan properties, vendor usually promises 3 months defects warranty.
Still a little confused about the whole process? Don’r worry our Realtisan team wants to invite you to a 45 minutes free private consultation.
