Step 1 – Reserving a Property
Once you have chosen a Property that suits your financial goals you will be required to complete a Reservation Form. On this form you will supply your details, your referrer’s details and your legal representative’s details.You will also be required to pay a holding deposit which via credit card, cheque or EFT.
Step 2 – Contracts Issued
Contracts of Sale for your purchase will be prepared and sent to your Legal Representative. Your Legal Representative will review the Contracts and liaise with the Vendors Legal Representative if there are any changes they require.
Step 3 – Purchaser Executed Contracts
You will be required to make an appointment with your legal representative to review and execute your Contracts of Sale. You will need to speak with your finance broker to ensure that you know what type of Deposit you will be exchanging and by what date, along with when your finance will be approved by. The relevant Deposit and Finance Clause will then be inserted into your Contract of Sale by your legal representative accordingly. You are required to return the executed Contracts of Sale to VICPROP Office within 7 days. If your Contracts are not returned to the VICPROP office within 7 days, it will be assumed that you do not want the property and your $1,000 will be refunded to you and your property will be made available for sale again.
Step 4 – Contracts Exchange with Vendor
Once VICPROP receives your executed Contracts of Sale we will exchange them with the Vendor within 24 hours. VICPROP will endeavour to ensure that your Contracts are executed by the Vendor and returned to VICPROP within 3 business days. The Vendor executed Contracts of Sale will be exchanged with your legal representative within 24 hours of receipt by VICPROP.
Step 5 – Obtain Finance Approval and Exchange Deposit
It is important that you liaise with your finance broker and ensure that you exchange your deposit before the expiry of your deposit clause. You should also ensure that you have obtained finance approval prior to the expiration of your finance clause and advise your legal representative. Please speak to your Legal Representative if you need an extension on either of these dates and they will formally request it on your behalf. Do not assume this has been done.
Step 6 – Unconditional Contract of Sale
A Contract of Sale for a Property is considered unconditional once you have exchanged your deposit and there are no outstanding finance clauses or special conditions. For an off-the-plan property, it is also when all of the purchasers obligations, (other than the act of settling), have been satisfied or waived by the Vendor.
Step 7 – Pre-settlement
Off-the-plan, VICPROP will aim to notify you and your referrer between 4-6 weeks prior to the established settlement date, so that you may start organising your finance for settlement. The Vendors legal representative will notify your legal representative between 7-21 days prior to settlement (depending on what your Contract of Sale states). This is usually when the certificate of occupancy has been issued and the Plan of Sub –division has been registered with titles office. This is also when your financier’s valuer may obtain access to complete their valuation for your finance. You will need to then organise a time to inspect your property for defects with VICPROP, which the Vendor must fix for you unless it is outside of the original specifications within your Contract of Sale. As long as these defects are not major, they cannot hold up the settlement. Your legal representative is required to exchange these with the Vendor prior to settlement. It is important to engage a Property Management Real Estate Agent at least 14 days prior to settlement. This is also the time that you should speak to a Quantity Surveyor to ensure they complete a Full Depreciation Schedule for your own personal use. Once you receive this then you should sit down with your Accountant and discuss your rental deductions and tax benefits. If the Certificate of Occupancy has already been issued and the Plan of Subdivision has already been registered prior to your Day of Sale and / or your Property in not brand new you will not be entitled to complete a defect report. The Vendor may allow you to complete a defect report if you negotiate it as part of your sale terms; however, it is important to remember that you may still have a builder warranty period with your Vendor. This will be shown in your Vendors Statement.
Step 8 – Settlement
Your legal representative should attend settlement for you, where they will obtain a ‘Settlement Pack’ from the vendor’s legal representative. This will unusually have your keys and the completed defect report. If you are renting your property you will need to exchange the keys with your Property Manager so that they can obtain access for open for inspections or exchange a set of keys with your new tenant.