Once your bid on the property has been accepted and you’re given the green light on the contract, it’s time to break out the chequebook and pay the pre-requisite ten per cent deposit. This is typically given to the real estate agent, who holds it on behalf of the vendor until the sale is finalised. Note that this ten per cent isn’t going to help you with stamp duties and other costs associated with your loan, so ensure you have ready access to these funds as well.
Contracts are formally exchanged between the buyer and the seller. In most cases, the solicitor or conveyancer representing each side does the exchanging, although when you are performing your own conveyance, this will have to be done personally. Once this has occurred, you are legally bound to proceed with the purchase of the property, unless a special condition is breached that is listed in the terms and conditions of the contract.