The buying process
The process of buying a property usually has four key steps. Here’s a guide to help you through each one.The sale and purchase agreement
The sale and purchase agreement, which is usually prepared by the real estate agent, outlines your offer, the settlement date and any conditions that must be met before the sale goes ahead. Make sure you discuss the agreement with your lawyer before you sign it.There are two kinds of offers – unconditional and conditional.
Unconditional offer
This is an outright offer to buy the property. You need to be 100% sure that you want this property and that you have access to the money to buy it. Once the vendor has accepted your offer, you’re legally obliged to go through with the sale.Conditional offer
A conditional offer is also a binding contract, as long as all your conditions are satisfied. You can only back out if one or more of your conditions are not met.Common conditions include:
- subject to valuation: the sale will only go ahead if the valuation is acceptable to you and to us.
- subject to finance: the sale will only go ahead if your bank approves your finance.
- subject to title search: the sale will only go ahead if there are no ownership, access or other claims recorded on the property title (your lawyer will do this for you).
- subject to a Land Information Memorandum (LIM) report (your lawyer can do this as well): the sale will only go ahead if the property (including any alterations) complies with all building regulations.
- subject to a builder’s or engineer’s report: the sale will only go ahead if you’re satisfied that the house or the land it’s on are sound.
You may wish to set other conditions – for example, that the sale is subject to certain repairs being done. Talk to your lawyer about anything you’re unhappy or unsure about. Don’t sign the sale and purchase agreement until you’re happy with the conditions.
Negotiation, acceptance and deposit
The vendor may accept your offer straight away or negotiate on the price or other aspects of the sale. The real estate agent will act as the 'go-between' until you and the vendor reach a happy medium. If you can’t agree on a price, you can withdraw your offer.Remember, let your lawyer know about any changes to the sale and purchase agreement before you sign. Once both you and the vendor have signed the agreement, it’s legally binding.
You’ll normally be expected to pay all or part (10%) of your deposit directly to the real estate agent when you’ve signed the agreement. It will be placed in a trust account until all the conditions have been met.
Settling your conditions
The sale and purchase agreement will state how long you have to settle the conditions. When all conditions are met, the offer becomes unconditional, the sale goes ahead and the property will be yours. If you have a pre-approved ANZ home loan, you can finalise it by contacting your ANZ home loan specialist or phoning the Home Buyer’s Line on 0800 ANZ HOME (0800 269 4663).If you need to apply for a loan, you can:
- apply online
- phone
0800 ANZ HOME (0800 269 4663) - visit any ANZ branch
- talk to an ANZ Mobile Mortgage Manager
How the settlement process works
- ANZ sends your loan documents to your lawyer for you to sign. Your lawyer explains the terms and conditions of the home loan and witnesses the signing of the documents.
- Your lawyer sends your loan documents and their certificate to ANZ’s settlement team, who lets your lawyer know the loan drawdown date (the day your loan starts). Your lawyer will be able to tell us when your settlement will take place. Note: As part of this process, your solicitor will need to confirm that the house is fully insured, so you will need to ensure that you have obtained this, speak to your ANZ home loan specialist who can assist you with your insurance requirements.
- On settlement day, our settlement team sends the money by either direct credit or bank cheque to the appropriate account (either a trust account or customer account) as advised by your lawyer. Your lawyer will then register the mortgage.
- We fax your lawyer to confirm the money has been transferred so you can complete the purchase
- You get the keys to your new home!
This material is for information purposes only and you should obtain professional advice relevant to your individual circumstances. While ANZ, part of ANZ National Bank Limited, has taken care to ensure that this information is from reliable sources, it does not warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, ANZ does not accept any liability arising from your use of this information.
