There are two types of offers:
Conditional - having one or more conditions to be met within a specified period (e.g. subject to a building inspection)Unconditional - no conditions
All contracts relating to land must be in writing. That means that any offers made on a property will be drawn up by the salesperson on the Real Estate Institute Sale and Purchase agreement.
This offer needs to be signed by the customer and is then presented to the client for their consideration. If the offer is at an acceptable level, the client will sign as acceptance and the sale is concluded.
If it is not at an acceptable level, the offer may be counter-signed by the client and sent back to the customer for their consideration. This may happen several times until the price and conditions are satisfactory to both parties and a sale is concluded.
At this point, the Sale and Purchase Agreement is dated, and the agreements are forwarded to both the clients and the customers solicitors.
It is normal practice for the salesperson to give copies of the completed agreement to both the client and the customer so that all parties have documentation detailing the possession date, the conditions and of what chattels go with the property.
The deposit must be paid immediately the agreement unconditional and is usually payable to the real estate agents Trust Account or in accordance with whatever is stated on the contract. A deposit of 10% is usually required.
By law we are required to hold the deposit in our Trust Account for 10 working days after which time we forward the deposit to the vendors solicitor, less our commission.
The conclusion of the settlement is carried out between your solicitor and the sellers solicitor.
Once an agreement is unconditional, the deposit is not refundable.
The process by which the settlement/possession date takes place is commonly conducted through lawyers and involves the payment of the purchase price (less any deposit already paid) in exchange for which the purchaser will be electronically registered as owner on the Certificate of Title to the property. This electronic registration will also ensure that all previous charges over the property are released .
Keys to the property are usually handed over to the purchaser by the salesperson immediately following settlement of funds to the vendors solicitor..
Normally, the settlement date and the possession date are the same.