The top buyer questions asked of the REIWA Information Service

Trying to navigate your way through the buying process can be overwhelming, especially in today's market when you have to compete with other buyers.

There can be a lot of pressure to act quickly in fear of missing out on the property you want. So, when time is of the essence, The REIWA Information Service can help. They are here to assist with any questions or issues you may have throughout your home buying journey.

Here are the top questions recently asked to the REIWA Information Service by buyers.

What happens if the lender cannot approve my application by the latest date?

You can certainly attempt to negotiate with the seller to extend the timeframe you are required to obtain finance by.

If an agreement cannot be reached for an extension, then the contract will continue until either:

1. the seller terminates the contract whereby the deposit will be refunded to the buyer, or
2. the buyer notifies the seller that the finance has been approved.

When does a contract come into place?

Essentially, when all parties have signed an agreement to the terms and conditions of the contract, then the representing sales agent will notify the parties that a contract has come into place.

Can I withdraw my offer during negotiations?

You can withdraw your offer at any point in time prior to the seller signing and notifying you that the contract has been signed.

If I need finance, do I have to nominate a lender together with the amount of the loan?

No, the financial conditions state that if no details are provided, then the lender can be any lender and the amount of loan will be equal to the purchase price.

What happens if I am told that the owner is considering multiple offers?

In the current market it is not unusual that the seller will receive multiple offers and it is important to remember that the seller is not under any obligation to consider offers in the order that they were received.

You may or may not be offered the opportunity to submit your best offer.

If you are not offered a formal opportunity to revise your offer, then you should consider if the offer that has been presented is your best offer in terms of purchase price and associated conditions. You can revise your offer and present it to the salesperson if you choose to.

Often sellers will advise all the buyers that have submitted an offer, through their sales representative, that multiple offers have been received and will give you the opportunity to revise your offer by the set date they provide.

What is the purpose of the final inspection?

It is a standard term in the contract whereby the seller provides a representation that the property will be in the same state and condition that it was in immediately prior to the contract date.

The purpose of the final inspection is to ensure that the seller is keeping to their representation - you are checking that the property is in the same state and condition that it was in immediately prior to contract date.

For example, if the grass is green on contract date, then it must be green on settlement date. The contract may also contain special conditions. For example, the contract may require the seller to paint the lounge room red and at the final inspection you will determine if the seller has actually painted the room red.

Why am I given a disclosure statement when buying a strata titled property?

It is a requirement under the Strata Titles Act that the buyer is given certain information before the buyer signs the contract of sale.

The disclosure sets out details about the strata lot that is being purchased, provided copies of the scheme plan and bylaws and copies of any minutes and statements of accounts and details about the levies which the strata lot owners pay for the upkeep of common property.

Whose responsibility is it to undertake the building inspection?

Any special condition requiring a building inspection is not a standard condition of the contract. Normally as it is the buyer who requires a building inspection or termite inspection then the costs of those inspections are borne by the buyer.

Are electronic signatures permitted?

Yes, electronic signatures are legal through the Electronic Transactions Act.

It is now very common for all contracts to be signed electronically.

More information

Are you a first home buyer? Read our WA first home buyers guide for more advice.