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The Sale Procedure and Process
You have accepted the
buyer’s offer, but this is the just the start of a process which
typically takes around 3 months. Your lawyer, if you choose to use
one, should keep you informed of the progress of the transaction and
protect your interests at every stage, but here is a quick guide to
the legal steps which are likely to follow your verbal acceptance of
the buyer's offer:
Letter of Offer: You will sign the letter of offer previously
signed by the buyer and accept the buyer’s earnest deposit (this is
typically 2% or 3% of the property price and can also be kept by the
estate agent as stakeholder until the Sale and Purchase Agreement
(SPA) has been signed) – the letter of offer gives a timeframe for the
transaction including when the SPA should be agreed and signed
(usually about 14 working days after the letter of offer has been
signed)
Sale and Purchase
Agreement (SPA):
The SPA will be drafted by the buyer’s lawyer and give the details for
the transfer and specify any warranties; on signing you should receive
a deposit of 10% of the purchase price less the amount of deposit
given at the letter of offer stage
State Authority Consent: This only applies to transfers of
leasehold land or if a foreign buyer is involved and it can take from
6 weeks to 3 months depending on the state.
Completion:
Completion will usually take place within 3 months of the SPA (or
state authority consent if applicable) but may be faster if a cash
buyer is involved; you should now receive the balance 90% of the
selling price less any mortgage balance paid to your lender.
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