10 Steps to Buying Your Home: From Signing to Settlement!

1. Signing Contracts

Once an offer is accepted, both the buyer and seller sign a Contract of Sale and the Form 1 documentation. This marks the start of the “cooling off” period, which lasts 2 clear business days. For example, if you sign the contract on Wednesday, the cooling-off period begins at midnight and ends at midnight on Friday. During this time, the buyer can cancel the contract by notifying the agent in writing.

2. The Deposit

After the cooling-off period, the buyer must pay the agreed deposit. This is held in the agent’s trust account until settlement. The real estate agency cannot earn interest on this money—it is simply held until the transaction is finalised. If the buyer withdraws without good cause, they may lose the deposit and could be liable for additional costs to compensate the seller.

3. Employ a Conveyancer

Both buyer and seller will need to employ a conveyancer to manage the legal documentation for settlement. A conveyancer reviews the contract and Form 1 for any potential issues, ensures that rates, taxes, and any outstanding charges are accounted for, and liaises with your bank to make sure everything is in order before settlement. It’s crucial to hire one early to allow for ample preparation.

4. Arrange Insurance

The buyer must arrange insurance for the property from the date of contract signing. If a mortgage is involved, the bank will likely require proof of insurance before settlement can proceed.

5. Meet Contract Conditions

Any conditions (e.g. subject to finance or sale of another property) must be met by the agreed dates to keep the contract valid and moving forward.

6. Organise Finance

Buyers taking out a mortgage should secure formal approval in writing and ensure that all finances are in place for settlement. Cash buyers need to ensure their conveyancer has the funds ready in advance.

7. Making Your Move

Once the contract is unconditional, start packing! Don’t forget to notify utility companies, organise a removalist, and set up mail forwarding through Australia Post.

8. Organise Property Management

If you're planning to rent out the property, now’s the time to choose a property manager and begin advertising for tenants.

9. Settlement

Settlement usually occurs 30-90 days from contract signing. The seller ideally vacates by midnight the night before, and the property should be in the same condition as when inspected.

10. Move In!

After settlement, you’ll receive a call from your conveyancer confirming everything is finalised. Now you can collect the keys and move into your new home!