If you are buying or selling over the Christmas period, you need to plan ahead
Most of us are very familiar with the busyness that is associated with the end of the year, Christmas, and New Year period and at times the stressful moments that can often come with it.
If you are considering either buying or selling property during this time it is best to be prepared well in advance to ensure your matter proceeds as smoothly as possible.
Here are some things it is important to consider:
In NSW legal offices take an extended holiday break over the Christmas/New Year period. Most firms close down several business days prior to Christmas and do not reopen until the first Monday following New Year’s Day at the earliest. Shortly prior to the Christmas closure period is a busy period for solicitors and conveyancers with much work needing to be completed or up to date prior to the break.
Many buyers and sellers also wish for completion of their sale or purchase to occur prior to the Christmas break putting extra pressure on practitioners.
If you are also considering a property sale/purchase which will occur prior to the Christmas period, it is best to contact your chosen representative as soon as this decision is made to check their office closure dates. This will give you an idea of the dates you will need to work within.
It is worth noting that even if your representative has a short Christmas break, the other party’s legal representative may not have the same office closure dates, effectively meaning your matter cannot progress or settle when both legal representatives are not available. Further, it may be best to avoid settlement occurring on the first day or two your conveyancer is back in the office after the Christmas break as it is also usually very busy.
Buying
In NSW the standard contract period is 35 days. If buying you need to allow three weeks prior to exchanging contracts and commencement of this 35-day period for legal advice, various inspections, and finance approval. Ideally you should allow a period of 8 weeks from acceptance of an offer to purchase to settlement.
It is important to note that should you not be able to settle on the scheduled date of settlement under the contract you risk incurring penalty interest and the potential cancellation of the contract depending on the circumstances. Your legal representative can assist to ensure you are protected against these potential problems.
Selling
When selling a property, a contract of sale must be provided to the agent before the property can legally be marketed. Your legal representative must order the relevant documents required and compile a contract for the agent. The timeframes for provision of these documents can vary considerably between council areas and again if you intend to undertake the sale over the busy Christmas period it is best to be forewarned of the timeframes involved.
When selling the same standard timeframes apply being approximately 8 weeks from agreement of the sale to the day of settlement.
Be prepared for negotiating terms outside of the norm during this time of year. A longer contract period may be required, for example, if the buyer does not want to settle until shortly prior to commencing their new employment in their new location in the new year.
Other Considerations
Due to increased property activity at this time of year you also need to consider potential delays with obtaining inspections and reports, delays with your lender and removalists. Everyone in this industry is busier than usual at this time of year. It is wise to have a backup plan in the event settlement does not occur on schedule. This may include alternate accommodation or the ability for your removalist to put your belongings into storage until settlement.
Is there a cooling off period applicable in the contract? Whilst the contract period is calculated in normal days whilst the cooling off period is calculated in business days. It is important to work with your legal representative to ensure that all the relevant dates in the contract do not coincide with public holidays or days when your legal representative is not able to act i.e. over their Christmas closure period.
Are there existing tenants at the property? Whether buying and selling this may also result in delays if there are difficulties with vacating tenants prior to or over the Christmas period. Tenants will be required to vacate before settlement can occur if the new party intends to move into the property.
Whilst it is important to factor all the above into your decision whether to buy or sell during this busy period it can also be advantageous to do so. As a buyer there may be less people looking in the market due to their other commitments at this time of year giving you an advantage. As a seller you have the advantage of potential buyers usually being quite committed to locking in a purchase due to commitments in the new year such as a new job or moving interstate.
There is no right or wrong.
Our advice is simple. Contact a conveyancer sooner rather than later and work with them to ensure all your requirements for a sale or purchase align with your commitments over this busy period and you are adequately legally protected.
Complete Conveyancing New England
Maximum Support, Minimum Fuss.
(02) 6771 3686
