WHAT IS DIFFERENT ABOUT CONVEYANCING IN SYDNEY AND NEW SOUTH WALES?
In NSW conveyancing services may be done by licensed conveyancers or law firms. Many people are unaware that conveyancing processes are different from state to state, in NSW common questions about the conveyancing process are who prepares the contract for sale of land and what should it contain? When does the contract become unconditional? I.e. when is the purchaser locked in?
In NSW the contract for sale of land is prepared by the vendor’s Solicitor Geelong or conveyancer, when this is finalised it is sent to the real estate agent for the purpose of marketing the property. For it to be a valid contract it must contain specific documents known as ‘prescribed documents’. These documents contain information to assist the potential purchaser in assessing the suitability of the property for their purchase.
A five-business day cooling off period applies in majority of purchases in NSW. The purpose of the cooling off period is for the purchaser to meet with their legal representative to obtain advice on the contract, carry out their property enquires such as obtaining pest and building reports, and to obtain their formal loan approval.
After the purchaser meets with legal adviser, carries out property inspection and receive formal loan approval during the cooling off period, they are required to pay the balance of the 10% deposit to the real estate agent by 5pm on the last day of the cooling off period. Once the cooling off period expires, the contract becomes ‘unconditional’ and are legally binding on both the purchaser and the vendor.
In the event the purchaser does not want to proceed with the purchase as a result of their enquiries or unable to obtain formal loan approval during the cooling off period, the purchaser is entitled to rescind the contract before the expiration of the cooling off period, however the purchaser must forfeit 0.25% deposit paid to the vendor.