Step 2: Exchanging Contracts
With all the pre-purchase steps out of the way it's time to exchange contracts with the other party. There are two copies of the agreement, one going to the purchaser and the other to the seller. These contracts must be signed and dated before they are exchanged. As and when the contracts are signed and transferred, they become legally binding.
One of the unique aspects of Australian property law is the cooling off period that exists after the contract exchange. It consists of five working days and allows both parties a chance to decide if they want to proceed. If there are any last minute issues or hurdles present, Jarrett Lawrie Conveyancing will try to resolve them on your behalf. In most instances, a deposit of 0.25 per cent of the purchase price is required before the cooling off period. If you are buying a home for $100,000, you would have to put down $250. A cooling off period does not exist if you buy a property at an auction.