9 Things You Need to Know When Buying a House

Congratulations on taking the steps towards purchasing real estate! Buying a house is one of the biggest financial decisions we will ever make in our lives so you’d be forgiven if you were feeling a little overwhelmed by the whole process.

“It’s important to know all the facts when entering into a contract to purchase real estate. If you are ever unsure about any aspect of the purchasing process, be sure to consult a professional before signing anything.” Says Kelly Hardie, Residential Property Specialist on The Justin Hagen Team at Calibre Real Estate.

We know buying property can sometimes be an anxious wait but be assured your agent is no doubt working hard behind the scenes to get you an answer as soon as possible. In the meantime, we’ve prepared this list of questions frequently asked by our first time property buyers that should help you out.

9 Things You Need To Know When Buying a House:

1. How long is the cooling off period?

The cooling off period on a standard REIQ contract is 5 business days from 5pm on the first business day after the contract date. This can be waived and does not apply under auction conditions
2. What happens if I pull out under the cooling off period?

You may be penalised up to a quarter of a percent of the purchase price if you do so.
3. How long is allowed to obtain a building and pest report?

7—14 days is usual however, this is up to you and written into the contract, negotiated at the same time as the purchase price.
4. How long is allowed to obtain finance?

Again this is up to you, 14 days is normal.
5. What should I look out for when signing a contract?

If it is an REIQ contract the terms and conditions should be standard. Look out for anything crossed out or amended.
6. What is an initial deposit?

An initial deposit is generally paid when the contract is dated and executed. It is usually a quarter of a percent of the purchase price, to cover the penalty should you pull out under the cooling off period.
7.What is the balance deposit?

The balance deposit is generally paid once the property goes unconditional. It is not a legal requirement of the contract however it shows that you have the means and are serious about purchasing the property. The deposits are held in the estate agents trust account until settlement and you should receive receipts for each payment.
8. When is the property at the buyers risk?

As per section 8.1 the property is at the buyers risk from 5pm on the first business day after the contract date. Generally a 30 day cover note from your bank will cover the contract period.
9. Special conditions

Your agent will have access to an array of standard conditions should you need them. If you want to include special conditions in the contract that deviate form this, ensure these are written or approved by a solicitor.