Buying or selling a home (ACT & NSW)

The term exchange refers to when both the buyer/purchaser and the seller/vendors contracts are signed, dated and exchange with the other.

For contracts to exchange, both parties must have signed a copy of the contract and the buyer/purchaser has paid the deposit, either to the real estate agents trust account or the seller/vendors solicitors trust account.

Settlement is the final process of either buying or selling property. It occurs when the remaining price is paid and the ownership of the property is passed from the seller/vendor to the buyer/purchaser. 

You will find that your settlement date is outlined in the contract for sale, usually occurring within 30-42 days following exchange of contracts. 

When buying a property the deposit to be paid is 10% of the whole purchase price, however you may discuss with either your real estate agent or solicitor and parties may agree to exchange contracts on a 5% deposit.

You will still need to pay the remaining 5% on settlement to make up the whole 10% deposit. 

A cooling off period is essentially your last chance to withdraw from the contract following exchange.

As a buyer to can waive your right to a cooling off period when you sign either a Section 17, Civil Law (Sale of Residential Property) Act 2003 (ACT) for ACT properties or; Section 66W, Conveyancing Act 1919 (NSW) for NSW properties.