Welcome To Our Buyers Guide
Purchasing real estate can be an emotional rollercoaster!
It can go from being a very exciting process to being confused and in the end just being ready to throw in the towel.
As many of us only buy or selling real estate once or twice in a lifetime it shouldn’t be an experience you look back on with regrets or questions like “should we have done this or
should we have done that?”
Hill & Viteri Property wish to provide our clients with the most satisfactory service.
“Our aim in this document is to try and help make buying real estate that little bit easier and make the whole process a smooth and memorable transaction.”
As you may already be aware, different agencies may have a different process on how they want you to purchase a property.
We would like to inform you of the buying process should you choose to purchase a property through Century 21 Hill & Viteri.
We will ask you the following questions to enable us to help you in the best possible way.
- The actual price you wish to purchase the property
- The settlement period you would require
- The name of your Solicitor/Conveyancer
- The name of your bank or lending institution
- Any special conditions or requests you may have
- The method by which you choose to pay your deposit
- The inclusions being left by the owner on settlement
Once we have the above we are in a position to put forward your offer to the owner.
Frequently Asked Questions
What do you mean by cooling off?
The signing of a five day cooling-off period is a great way to purchase.
This method provides full protection against.
- The Vendor pulling out of the sale
- Another purchaser paying more for the property “gazumping”
- Any government body wishing to purchase the property
With the contract exchanged, the purchaser has total control and time to ensure that everything is to their liking. However, this protective method requires commitment by the purchaser, i.e. if the purchaser pulls out of the contract during the cooling off period they will forfeit the 0.25% deposit they paid when signing the contacts.
The cooling off period is created to allow the purchaser time to organise inspections and reports, check the contract and finalise finance approvals in writing.
How do we exchange contracts?
The only way to buy is by exchanging contracts. There is two ways this can be done.
This means your solicitor has signed a 66w certificate. This certificate waives any cooling off periods and makes both parties committed to an instant, legally binding relationship.
A 10% deposit must be paid unless another amount has been agreed too.
There is no turning back otherwise you will loose your full 10% deposit.
This option also applies when bidding at Auction. There is no cooling off period.
Exchange with a cooling off
As we explained above the cooling off period lasts for 5 business days and allows the purchaser the right to rescind the contract for any reason (forfeiting the 0.25%). This period commences upon exchange and terminates on the fifth working day at 5pm.
The Vendor may extend this period by a clause in the contract or by notice in writing given before the end of the period.
Making an Offer
If you want to make an offer, be certain that you can follow through by having the following items confirmed.
- A pre-approval of finance from your bank or lending institution
- Your own property sold, or at least had its value assessed for a possible sale
- You have a solicitor or Conveyancer selected
- Determine how you will be paying the deposits
Pest and Building Reports
Before you purchase a property it is important that you purchase a pest and building report from a qualified inspector.
Here at Century 21 Hill & Viteri we understand that it is an extra cost to you. For most of our auction properties where possible we will provide a copy of the pest and building report for you to have a look at. However if you do decide to go further with the property we do recommended you purchase a copy of the report.
Don’t be alarmed if your bank or lending institution requests a valuation by a registered property valuer, this is normal practice and serves as confirmation of the sale price.
It is not unusual for the bank valuation to be less than the sale price; Bank valuations are very conservative this is to help protect the bank from any market fluctuations.
Buying At Auction
If you intend to buy at auction or by way of 66W, all of the above must be in place. Auction day is final. If you turn up to bid and you are the highest bidder above reserve. You will be required to sign an unconditional contract and pay the 10% deposit and proceed with the purchase. Negotiations through solicitors can provide the purchaser with amended conditions to the contract, i.e. 5% deposit and settlement terms.
What it all means…
Being prepared is the key. Understand your rights and have everything ready. By following the advice in this guide as well as your solicitor and Century 21 Agent you will be on your way to purchasing your new home.
If you are considering buying a property and it is with another company and you are in need of some advice, please feel free to call the Century 21 Hill & Viteri team with any questions you may have.