The Process from Offer to Settlement
Once you have accepted an offer on your management rights business, a contract must be signed by the buyer and you. A copy of the signed contract is then provided to both parties.
When the contract is signed by all parties, the buyer is required to pay a deposit (usually 5% of the purchase price ) with the balance of the purchase price paid at settlement.
Buyers of management rights businesses may have a cooling-off period linked to the residential portion of the management rights contract, during which they can withdraw from the sale. This cooling-off period is commonly used for buyers to begin to organise financial &legal due diligence and inspections of property e.g. pest or building inspections.
The cooling-off period can be waived, reduced, or extended by negotiation under certain circumstances.
The legal process for preparing and exchanging contracts, and the length and conditions of the cooling-off period can differ.
Your broker will explain the legal process applicable to your business transaction.
Settlement usually takes place between 2 to 3 months after the contracts are signed. At settlement the buyer officially becomes the owner of the property and all responsibility is passed from you to the buyer. Until settlement the property is still your responsibility so it is important you keep paying your insurances and rates.