NSW buying strata unit process

Hiya,

Trying to understand what is the Private sale process in NSW for buying strata unit. I mean what sort of checks needs to occur before signing on contract. I've no exp buying in SYD....

in VIC, you get section 32 (on request) from vendor and you can get this looked at by your conveyancer before signing contract to find any obvious issues.
Section 32 contains all the information. Is it such document exist in NSW buying process.

Can conveyancer look at the equivalent such document in NSW before signing the contract???

From the other info i've seen online, it says you don't put 'subject to finance' OR Building inspection clause for NSW properties (Private Sale)and can only do that in cooling off period? Is that right....I've always put 'subject to finance' clause to be sure....but not including that sound risky....any thought pls....

cheers
 
I wish I had a $ for every time I posted this :D

For a strata property:

Ask for a copy of the contract from the selling agent. Get that to your solicitor / conveyancer for a contract review before signing.

There are 2 ways to purchase property in NSW (excluding auctions, which are pretty much the same everywhere):
Way 1
1. Sign a contract in the REA's office & pay 0.25% deposit. 5 business day cooling off period begins.
2. Do strata search, & get finance approval within 5 days. Seek, but don't necessarily gain, an extension of time if there are hold ups getting this done (quite common at the moment).
3. All good? do nothing - day 5 at 5pm, pay up the balance of 10% i.e. 9.75% and contracts are formally exchanged by default
4. All not good? i.e. problems uncovered in the strata records and you want to pull out. Rescind the contract and forfeit the 0.25% deposit to the vendor
5. If contract not rescinded, then settlement in 42 days later (typically)

Way 2
1. Make a written or verbal offer. Written offer has clause such as "finance approval, building and pest, settlement period", verbal the same.
2. If the vendor accepts the offer (written or verbal), finance approval, strata searches etc are initiated
3. Vendor's solicitor issues contract to your (purchaser's solicitor)
4. All good? Sign contracts, pay 10% deposit. NO cooling off period applies. Your solicitor signs a 66W form, that you acknowledge that no cooling off period applies.
5. Contracts are exchanged
6. Settlement in 42 days later (typically)

Only under Way 2 are you open to being gazumped. This can happen at any point up until points 4. & 5. i.e. the other purchaser could buy the property before contracts are exchanged and you would miss out.
 
In NSW the contract must be complete in form before it can be put on the market ie vendor must prepare the contract including any special conditions, sewer diagram, Zoning certificate before it can be advertised - unlike in Victoria.

Upon exchange (and within the cooling off period) the other searches will be performed by your solicitor/conveyancer.
 
Way 2
1. Make a written or verbal offer. Written offer has clause such as "finance approval, building and pest, settlement period", verbal the same.
2. If the vendor accepts the offer (written or verbal), finance approval, strata searches etc are initiated
3. Vendor's solicitor issues contract to your (purchaser's solicitor)

From my understanding who can put the Finance and B&P clauses into a contract is quite different between NSW and Vic. Vic - the REA can amend the clauses while in NSW, the vendor's solicitor must amend the contract to include these clauses (lengthening the process and opening up to potential for gazumping). Is this correct propertunity??
 
From my understanding who can put the Finance and B&P clauses into a contract is quite different between NSW and Vic. Vic - the REA can amend the clauses while in NSW, the vendor's solicitor must amend the contract to include these clauses (lengthening the process and opening up to potential for gazumping). Is this correct propertunity??

In NSW the vendor's solicitor amends the contract. (Although, personally, I am quite happy to delete special conditions and add in special conditions of my own, into the contract of sale, once the REA and vendor have agreed.) Sometimes, some solicitors can add too much delay into the process - and I'd rather ask forgiveness than seek permission.;)
 

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Oops....didn't realize there are replies.

Ask for a copy of the contract from the selling agent. Get that to your solicitor / conveyancer for a contract review before signing.

Thanks Propertunity. So regardless of any of the two methods that you follow. Buyer always has access to contract before written/verbal offer. That's good to know so buyer's solicitor can point out some obvious issues before offer given.

I get your point about being gazumped....but i guess you can reduce that risk by paying 0.25% deposit and take it off market....is that right??

So it is called section 32 in VIC what's it referred in NSW as???

Upon exchange (and within the cooling off period) the other searches will be performed by your solicitor/conveyancer.

Can you please elaborate on what other searches could require keeping strata unit in mind....

From my understanding who can put the Finance and B&P clauses into a contract is quite different between NSW and Vic. Vic - the REA can amend the clauses while in NSW, the vendor's solicitor must amend the contract to include these clauses (lengthening the process and opening up to potential for gazumping). Is this correct propertunity??
wouldn't be better to just attach separate page listing 'Special condition' and put reference for those in main contract (e.g. section 32) saying 'Special condition' applied...refer attached..
 
wouldn't be better to just attach separate page listing 'Special condition' and put reference for those in main contract (e.g. section 32) saying 'Special condition' applied...refer attached..

Best to go through the process for changing the original contract with your solicitor/conveyancer, but I understood that no, additional pages can't just be added to the contract and regarded part of the contract. You need to go through the process applicable for that state.
 
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