Are you Buying or Selling a Property in Perth - or anywhere in WA?

What Happens when Preparing the Contract?
A significant majority of sales are made using the REIWA Contract for the Sale of Land or Strata Title by Offer and Acceptance (O&A), which incorporates the Joint Form of General Conditions for the Sale of Land (General Conditions) as the terms and conditions which apply to your transaction. You will note that on this O&A, you can nominate if the contract is to be conditional on you obtaining finance. If you do not obtain finance by the time specified, the Seller may exercise the option to terminate the contract, in which case, the deposit will be returned to the buyer. It is common for most purchases to include a number of special conditions, such as termite and pest inspection or structural inspection for major defects. These special conditions must be precisely worded to avoid future disputes and must be satisfied in order for the contract to be binding. Upon satisfaction of these special conditions or the expiration of time to give notice, the contract becomes unconditional and will be bound to perform your obligations under the contract.

What is a Settlement Statement?
A Settlement Statement, also known as an adjustment statement, is a document that outlines the adjustments to the purchase price to account for:
(a) the deposit paid;
(b) any obligations/expenses being paid by the other party, such as the discharge of mortgage fee (which is the Seller’s obligation) being paid by the Buyer upon registration of the transfer; and
(c) charges such as council rates, water rates, water usage and strata levies/insurance which are prepaid or outstanding and need a pro rata adjustment.
A Settlement Statement can be confusing to understand, particularly where there are interest charges on outstanding amounts; discounts, such as pensioner rebates have been applied; and processing fees that have been charged where the Seller has entered into a payment plan. These adjustments cannot be apportioned between the parties.

What happens on Settlement Day?
As most settlements occur through PEXA, we will review the workspace online. We sign the transfer and financial statements on your behalf and provide authority for any funds held in trust to be uploaded onto the system at the time of settlement. When it is time for settlement, PEXA’s automated system will process the documents. Upon being satisfied it will disburse the funds into the relevant accounts. In the following days, PEXA will lodge the transfer with Landgate. If it is a paper settlement, we will confirm the cheque directions and, if necessary, prepare our own trust cheques. All parties, or a representative of each party, will attend the same location (usually Landgate or the incoming mortgagee’s agent’s office) to exchange documents and cheques. We charge a paper settlement fee to cover these costs of an agent attending. Once settlement has been effected, you will receive an email from us confirming that settlement occurred and that the Buyer can receive the keys. Please note that, if the Seller uses the property as their principal residence, they are entitled to remain in occupation until noon the next day, though this is uncommon. Most people move out of the property on the morning of the settlement with keys/security devices exchanged around lunchtime/afternoon once confirmation of settlement is received by the Seller’s agent.

What If Settlement is Missed?
There is a three business day grace period for settlement to occur in which there is no interest payable. After this period:
(a) if the delay is due to the Buyer, the Buyer must pay interest on the balance of the purchase price and any other moneys payable at the date of settlement; and
(b) if the delay is due to the Seller, the Seller must allow a deduction from the purchase price an amount equal to interest on the balance of the purchase price. The other party must be ready, willing and able to complete the settlement on the original settlement date to be entitled to interest. If they are not, interest will only accrue once they give notice that they are ready, willing and able to settle.
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How Much Does it Cost?
Our fees start at $1100+ GST for buyers and $900+ GST for sellers. Disbursements such as Landgate fees are additional, and you will be informed of the total before we start work. The full fixed-fee quote will be provided prior to the commencement of our service.