What happens when I have found the right property to buy?


Make an official offer to buy via a Letter of Offer to Purchase. Get the confirmation of sale from the Vendor/Seller by his signing this document and acknowledgement of acceptance your Earnest Deposit paid to him (usually between 2% or 3% of the Agreed Purchase Price. The Earnest Deposit may be kept by the Real Estate Agent as a stakeholder until the Sale and Purchase Agreement (S&P) has been duly signed.


You should engage a legal firm specialising in conveyancing to prepare the terms and conditions of the S&P and to complete it within 14 days from the date of the Letter of Offer to Purhcase. S&P must be signed by both parties by this dateline. You should then pay to the Vendor/Seller the 10% Deposit of Purchase Price less the amount of Earnest Deposit given at the 'Letter of Offer to Purchase' stage.


You should submit all relevant documents to the banks to process your mortgage loan if you do not intend to pay cash for the purchase of the property. Completion of the whole transaction will usually take place within 3 months of the S&P submission (or state authority consent, if applicable) but may be quicker if you pay by cash or if the Vendor/Seller does not have any existing mortgage loans secured on the property. You will pay the balance 90% of the Purchase Price to the Vendor/Seller and collect the keys to your new property for complete handover!

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