The process of exchanging contracts on a new property

The Contract of Sale is produced in duplicate, one copy each for you and the seller. It details the terms and conditions of the sale and any special conditions making the sale subject to finance, pest and building inspections, or your sale of another property. It should list inclusions, and may specify exclusions.

It also specifies a 'settlement date??the date on which you will pay the balance of the price and legally own the home. Usually, the property is vacated ready for you to move in immediately on settlement, but sometimes the parties agree to allow buyers to move in early, or vendors to stay a while after settlement.

Your solicitor will examine the contract carefully and explain it to you before you sign. Contracts are then 'exchanged', and your solicitor receives the seller's signed copy. You pay the full deposit (usually 10%) to the seller, the agent, or to be invested in an interest-bearing account until settlement.
After a five-day ?cooling off? period, both parties will be bound by the contract.

You can use the five days to obtain building reports and confirm your finance. Your solicitor will perform title searches to check that the seller legally owns the property; there are no liens on the title or restrictions on property use; and the property isn't about to be resumed to build railways, roads, or dams.