When is exchange

[cimbom]

Hello,

I will be receiving a contract in the mail and was wondering when exchange is deemed to have taken place - the date the contract is signed and sent back (same day) or the day it is received by the vendor's solicitor? I presume the vendor will sign it first?

Thanks

 

[Jamie M]

Exchange shouldn't occur until your finance has been formally approved (unless you're purchasing at auction).

It's the time where your solicitor accepts the vendors signed contract of sale and provides the other side with yours.

This is the point of no return - you must complete the transaction otherwise you'll be penalised in the form of forfeiting your deposit (usually 10% of the purchase price) and a few other nasty little things.

Cheers

Jamie

 

[Terry_w]

Its really once they have your contract in their hands as then you are locked in. A contract for land is generally not enforceable unless it is writing and they don't have it in writing until (generally) they receive your contract.

Same with you and their contract - you can't enforce it until you have their signed contracts.

 

[cimbom]

Thanks for your replies. The reason I would like to know the date is because the vendor wanted exchange to occur this financial year. I am expecting to receive the contract today and can send it back out tonight/tomorrow but they wouldn't get it until Monday. I was hoping that if I signed it with today's date then it would help but I have no idea.

The contract is subject to finance as the loan hasn't been finalised yet. The lender wanted this and the lawyer I'm using seems to think it's fine as they haven't said otherwise. I presume this is fine?

 

[Terry_w]

For them to be on the safe side they should do a physical exchange of contracts tomorrow at the latest.

 

[JWR]

Or you can sign the contract, scan it onto computer and send by email this arvo.

 

[Propertunity]

Or you can sign the contract, scan it onto computer and send by email this arvo.

You can, but according to the strict letter of the law, it won't be valid.

 

[JWR]

I've done it before without physically sending through the post and has worked out fine...

Express post the other option

 

[Ed Barton]

You can, but according to the strict letter of the law, it won't be valid.

Is that so in all states?

I've done so for the last couple in QLD, i think they've had clauses saying facsimile (email or fax) exchange is acceptable. does that (the clause) change things?