Exchange and Cooling OffSAS2019-05-10T06:58:13+11:00
Exchange of Contracts
Once the terms of your contract have been negotiated, your deposit (normally 10% cash) is paid to the agent and your contract is exchanged (your signed copy is exchanged for the vendor’s signed copy).
Before you exchange you should generally:
complete your pest and building reports (if required);
complete your survey and received your building certificate from Council (if required)
have received confirmation from your lender that you have unconditional finance approval, in other words the bank has completed its valuation and the mortgage insurer has approved your application (if required)
Normally purchasers have a 5 business day cooling off period from the date of exchange. During this time a purchaser may elect to cool off for a variety of reasons, for example:
you change your mind about the purchase;
your inspections have discovered problems with the property; or
your finance has not been unconditionally approved
If you decide to cool off you must pay a penalty of 0.25% of the purchase price to the vendor.