Contracts in SA

[spludgey]

I'm due to go to Adelaide next week and I'm hoping to come back with a couple of investment properties under my belt.
So far I have bought properties in NSW and QLD, but as the contracts and cooling off are very different in the two, I was wondering what SA might be like? Is it like one of the two or different again?
Does anyone have a sample contract that I could have a look at?

Also, does anyone have a conveyancer/solicitor that's good and gives a discount for multiple contracts?

 

[D.T.]

Use PRS conveyancing tell them I sent them.

Some rea will allow a verbal offer, some will make you put it on an offer form.

Once its agreed to, rea does up the template contract, its about 10 pages. This has your name (or name you're buying in), your address, the purchase dollar amount and whether its subject to finance and any other conditions. You sign this and initial all other pages. Send it back to rea.

If vendor likes it (and they do, that was the point of the pre offer dance), they'll sign and initial that same contract and send it back to you. Forward it onto your broker and conveyancing firm.

The rea will then send you whats called a form 1. Its a bundle of searches and disclaimers about the property ie encumbrances, easement, land tax etc. This is usually about a dozen pages. You need to sign the one that says ive read all of it and send it back to rea.

From when you received the form 1, clock begins on 3 biz days of cooling off. During this time I usually do my b & p. By the end of that your deposit is due (usually 1000 but some rea will try for more). Make sure you get a receipt. Id also organise your insurance now.

From there you start your finance tango with your broker. My last couple of deals ive gone sans finance clause so I dont remember the duration on finance approval.

Then its just a waiting game. Settlement is typically 42 days but can be any amount you put on the contract.

If interstate, make sure to tell rea you authorized them to give keys to PM as they have refused me before. Also see if you can do repairs or tenant showing during the process

 

[eKwatee]

Good information and a thorough reply from D.T. however just one correction, the cooling off period in South Australia is 2 business days once the Form 1 is received.

Also just a tip on saving a bit of time and hassle. South Australia now has parties of property transactions needing to complete a Verification of Identity, your Conveyancer of choice will do this for you. It can be completed prior to signing any documents, however you will need to use the same Conveyancer to complete your transaction, that has witnessed your (VOI). Get this done whilst you are in Adelaide as it can be a hassle to do this from interstate.

I would recommend Four Points Conveyancing on (08) 8271 1123, ask for Mark Berry.

 

[D.T.]

Thanks Matthew, good to have rea input. On my last deal I utilised the cooling off period to bail from contract. I received form1 on a friday and had to bail by Tuesday, which is what made me think it was 3 days?

Also, how come some agents try to get more deposit out of me? Don't they realise that it's just going to sit in idle their trust account and doesn't make me any more likely to continue/discontinue the deal?

Also, let me in on some off market deals

 

[Brady]

DT it's 2 full business days. Bit harsh to sign up Friday night and only have 1 day being Monday to ponder.

As for deposit, agent's want to ensure that their commission is covered if the contract falls through. You won't have too much trouble with deposits if you cover ~$10-20k to cover the comm

 

[D.T.]

Out of my completed SA purchases, I've done one at $5k and rest at $1k.

The unsuccessful ones were various from $1k upwards - including one REA who had my offer accepted by the vendor and then was promptly told to learn how to swim when he demanded no less than $10k deposit from me.

 

[Jaggannath]

$1k and $5k from me, and I had three days cooling off in both to organize B&P etc. Not sure why, but I remember both being three.