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What Happens After Accepting An Offer?

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What Happens After Accepting An Offer?

Coming to a deal that you agree upon through the process of negotiation, then accepting an offer is a huge milestone in in the process of selling a house.

There are many reasons why either party, the buyer or seller, may walk away from a deal, so coming to an agreement that both parties are happy with is fantastic.

What happens next may vary, depending on what state you are in or the nature of the sale.

As a preliminary step to moving towards settlement, make sure that you are properly equipped with an appropriate amount of legal support. This may come in the form of a solicitor or conveyancer (what is the difference between solicitor and conveyancer). Having legal representation will ensure that all your interests are correctly met and that you are able to breeze through the acceptance and settlement phases as smoothly as possible.

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Here are the proceedings that are carried out once an offer is accepted:

The contract of sale is exchanged

Once the buyer and seller come to an agreement, both parties must sign a contract of sale. This should be prepared by a solicitor, conveyancer, or an agent. A contract of sale details the sale price that both parties have agreed on, along with the closing date and any steps that need to be taken care of prior to closing date, such as final inspections.

It also includes any additional items that might be included along with the sale, such as light fixtures, fittings or other, and the state of the property at the time of signing the contract.

The vendor’s statement is prepared

The vendors statement (also called a section 32) is a document that is prepared by the buyer’s agent, conveyancer, or their solicitor, which details any identified issued with the property along with any zoning or land requirements outlined by the local council.

This would include any trust complications, outstanding loans, or property taxes. This step reinforces the importance of having legal representation throughout the acceptance to settlement process, as they will be able to work through any problems that might arise.

The deposit is put forward

Once the contract of sale has been signed, it’s time for the buyer to put forward the deposit on the property. The deposit is usually 5-10% of the agreed purchase price. If you are buying, you’ll need to think about getting your home loan approved by providing a copy of the contract to the lender, who will conduct a valuation of the property to check its worth what you are paying for it. This is where having a mortgage broker would be useful.

The cooling off period begins

Once the contracts have been exchanged and signed, along with a vendor’s statement, and the deposit has been put forward, the cooling off period begins. The cooling off period length and requirements vary from state to state (cooling off periods state by state).

The cooling off period generally ranges from 2-5 days, during which the buyer has a chance to conduct any final inspections, amend the deal or withdraw. Once the cooling off period ends both parties are locked into the sale, and will proceed on to settlement.

That wraps up what happens in the period following agreement and before settlement- when the keys are handed over, the full amount is paid to the seller and the ownership over the property is officially transferred from one party to the other. Then the sale is complete, and both parties can walk away to celebrate!

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