At REAPfield, we aim to ensure that your purchasing process with us is a pleasant and memorable experience. In order to ensure that we serve you the best we can, we will outline Reapfield’s purchasing process and some tips for you to ensure that the process flows smoothly.
Should you decide to secure or make an offer on one of our listed properties, we will ask you to confirm the following details, enabling us to help you in the best possible way.
1. The actual purchase price you will be paying for the property.
2. The method by which you choose to pay the 10% deposit (3% earnest deposit & balance of the 7% within the 14 days) e.g. cheque / bond / other.
3. Whether the completion period of 3 months is acceptable.
4. The name of your chosen lawyer.
5. The name of your bank or financial lending institution.
6. Any special conditions or requests that you may have so that we can inform the vendor (property owner).
Once we have the above information, we are in a position to arrange a meeting with the vendor.
STEP 1 : EARNEST DEPOSIT
Usually an earnest deposit of 3% of agreed purchase price is payable. This is to be paid upon signing the agreement to purchase.
STEP 2 : AGREEMENT TO PURCHASE & BANK LOAN
Once the agreement to purchase is signed and earnest deposit paid, the paper work would be presented to your lawyers and your banks for approval. This would take up most part of the next 2 weeks. In this time, you are advised to prepare the funds to pay for the balance of the 10% deposit. So, in cases here 3% earnest deposit is paid, then the balance of 7% is payable. This balance is payable at the signing of the Sales & Purchase Agreement (S&P Agreement)
STEP 3 : SIGNING OF SALES & PURCHASE AGREEMENT (S&P AGREEMENT)
The balance of the 10% deposit has to be paid before or on the signing of the S&P Agreement. From here on, the transaction is completed and you wait for the settlement of the property to obtain possession to your new home.
1. Before making offer
If you are going to be making an offer, be sure to have the following ready :
• A pre-approval of finance from your bank or lending institution.
• Your own property sold, or at least assessed for value and possible sale time.
• You have selected a lawyer
• Determine who you will be paying the 10 % deposit and associated costs (please refer to later section for all the associated costs)
• Be prepared for taking possession of your property in 90 days.
2. Presenting strong offer
Property owners receive all types of interest - some genuine, some not. Some people submit offers to test the possibility of sale, but do not actually honour their offer. This can lead to frustration and concern for the owners as they try to assess who is actually a genuine buyer.
The best way to present a strong offer on any property is to utilise your purchasing option of signing the agreement to purchase with a cheque for the initial earnest deposit (normally 3%). This allows for an offer to be submitted to the owner in writing. This clearly demonstrates to the vendor that you are serious about your offer.
3. Bank Valuations
In some circumstances, the bank would request a valuation by a registered valuer. This is a normal practice and this would serve to confirm that you have purchased the property at agreed price.