Purchaser Next Steps

Fulfilling your obligations

1. If there is a building and pest inspection condition on your contract, you must make necessary arrangements for these inspections to take place as soon as possible. The inspection reports can reveal details of the property which affects your decision of purchasing the property.
2. You must also ensure that you apply for your mortgage as soon as possible if there is a subject to finance clause in the contract.
3. If it is unlikely that your loan will be approved prior to the due date, you must let us know so that we are able to negotiate with the Vendor for a possible extension of the timeline.

Obtaining your Certificate of Currency

(Building Insurance)

Your lender will request a certificate of currency or building insurance prior to unconditional approval of your loan.

You are able to browse some options for building insurance through the CANSTAR website. However, you should speak to your mortgage broker in order to obtain the insurance that is most suitable for you. Immediately upon receival of the certificate of currency (building insurance) you must send it to us.

Shortfall Account V Using Solicitor Trust fund

What is a Shortfall account

A shortfall account is an account provided by a bank or your financial institution, that enables you to deposit any shortfall of funds between the amount of monies that the bank will provide to you and the amount of monies that is needed to settle your property purchase.

What is a Solicitor trust account

This is a bank account that allows us as your Solicitors to hold your money on trust for you. In the event that your bank does not provide you with a shortfall account you could deposit any shortfall of monies between the amount provided from your loan and amounts required to settle your property.

You should make an inquiry with your Mortgage broker or bank if they will be providing you with a Shortfall account for you to deposit any shortfall of funds between the amount you will receive as your loan and amount needed to settle your property.

If your Mortgage broker and/or bank advice you that you will not be receiving a Shortfall account facility, you should write to us immediately as you will need to use our Solicitor Trust fund account to deposit the shortfall of funds for us to settle your property.

Section 27 of the Sale of Land Act (S27)

As the purchaser if you wish to refuse early release of the deposit, you must provide notice to the Vendor stating that:

• You are not satisfied with the particulars; and

• The reasons for not being satisfied.

S27 allows for early release of the deposit. Generally, the deposit that you pay is held in a trust account of a lawyer or real estate agent. S27 allows the Vendor to request that the purchaser release this deposit to the Vendor after the contract is unconditional.

The Vendor must show evidence that the balance of the purchase price payable by you to the Vendor, (without factoring in the deposit), is sufficient to discharge the Vendor’s mortgage on the house that you are purchasing. In the event we receive a S 27 request for releasing the deposit we will advice you on if it is prudent to sign the release or not.