So, you have sold your property and have decided to purchase another. It may sound simple, however the process can be rather cumbersome and there are various matters which require your careful consideration. For instance, should your purchase Contract be made conditional upon your sale? Do you have a cash deposit available for your purchase or are you relying on your sale proceeds? Can you obtain early access to your purchase property to ensure vacant possession of your sale property is provided on settlement?
The Conditional Contract:
If you are relying on your sale proceeds for your purchase, it is important to make your purchase Contract conditional upon completion of your sale. This will permit you to withdraw from your purchase, usually without penalties, in the event your sale does not proceed to settlement. This, of course, is subject to the vendor in your purchase being agreeable to entering into a conditional Contract, as a conditional Contract does provide some uncertainty to the vendor that the purchase may fall over if issues arise in your sale.
Early Release of Deposit:
If you do not have sufficient funds available for a deposit in your purchase, you may be able to obtain early release of the deposit in your sale to use as a deposit in your purchase. Alternatively, you could seek to pay a reduced deposit or use a Deposit Bond in lieu of a cash deposit. Ultimately, this would be subject to either the purchaser in your sale being comfortable with the early release of the deposit or the vendor in your purchase being agreeable to accepting a reduced deposit or a Deposit Bond.
Vacant Possession and Early Access:
Most Contracts require that you provide vacant possession of your property on settlement and that you cannot begin moving into your new property until settlement has occurred. For properties which are significant distances away, this may not be of concern when transit times are factored into the settlement timing. However, for properties within close proximity, you may find yourself at your new home with an entourage of removalists waiting for settlement to occur. Accordingly, with the vendor’s approval, you may be able to obtain early access to the property or part of the property i.e. garage to begin moving items into the property prior to settlement.
At the outset, discuss your plans with the real estate agent in your sale and purchase to ensure they, and the other parties, understand your position at the time of negotiating the sale and purchase. Also, discuss your plans with your solicitor to ensure the appropriate conditions are incorporated into the Contracts. To make the move from your existing home to your new home as smooth as possible, contact the property team at Everingham Solomons, because Helping You is Our Business.
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