We just covered how professionals can help you through your selection process. Which brings us to the Exchange. This is one of the most critical steps during the Off the Plan Process. Particularly in high demand projects, a fast exchange can be the difference between buying the property you like and missing out. We will review each aspect below:
To successfully register your interest, your Off the Plan consultant will take further details from you such as the purchasers name(s) and solicitor details. This is seen below.
The expression of interest and holding deposit will be completed outlining such things as your conveyancer and purchasers details. The holding deposit is a few thousand dollars to secure the property off the market for 7 days.
It is important to understand the holding deposit. It is the time when you convey to the developer your intention to move forward with the purchase of the property.
Holding deposits vary with each developer and development. Typically a standard holding deposit is a few thousand dollars. They are fully refundable. Once a holding deposit is paid, then you will provide the contract information, which will enable you to get the property off the market and give you a week period to exchange on the contract.
Benefits of the holding deposit
- The holding deposit system enables purchasers to decide on a property they like, then secure it off the market
- Holding deposits are typically refundable
- It incentivises faster decision making
- It has limited repercussions
- Gives you a week or so to make a final decision
- Small outlay which doesn’t adversely affect cash flow
- Stops you missing out on a property you really like
|Property value||Holding deposit||What else is required?|
|$650,000||$2,000||Contract information – purchasers names, contact details, solicitor / conveyancers details|
|Timeframe to exchange||Amount needed to exchange i.e. balance of 10% deposit||What else is required?|
|5 business days||$63,000||Signed contract|
The holding deposit is the start of the formal deposit process. Now is when you will have the choice between the differing types of deposit options. Once the holding deposit has been paid and registration of interest has been completed, the contract of sale is created and forwarded to your legal representative.
Select a suitable solicitor / conveyancer who specialises in the particular market of purchase i.e. Sydney, Melbourne or Brisbane.
The payment of the balance of the 10% deposit is typically paid into the real estate agents or solicitors trust account acting for the developer. The normal methods of payment are EFT (Electronic Funds Transfer) or cheque.
Once your conveyancer has explained the contract and you are happy to proceed you will sign the contract.
Contract will formerly exchange once it has been counter signed by the developer and executed by the developers solicitor / conveyancer. Your 10% deposit will be held in the trust account.
We now enter the settlement which is the final step in the Off the Plan process.