What’s the steps before contracts are exchanged?

What to change on Attio?

💻

Here’s what that looks like:

📱

Here’s what it looks like:

Call the client to celebrate and go through next steps:

WhatsApp recap message from the call:

No answer - WhatsApp message for them to call when free.

Request the contract from the agent- if reviewed after signing

Confirm purchaser details are correct

Solicitor/Conveyancer reviewing the contract before client signs

Obtaining the rental appraisal

We’ve exchanged contracts!

What is an exchanged contract?

What do I update in Attio?

What to send to all parties involved?

Send client success team sales agent and PM details

Insurance

Handling Insurance Processes

Finance

Pest & Building

Steps for Understanding Pest and Building (P&B) and Finance Clauses for Each State

What to do when we receive the P & B report

• P & B clause timing

• A quick look at the report and if further investigation will be required.

• If there is obvious items that will need to be negotiated.

• If there is something obvious which will make us walk away from the property.

Victoria & Western Australia P & B Inspections

• Have a high level of attention to detail.

• Educate the client as you work through the process.

• Work with the lawyer to tweak clauses, aiming to replace "structural" with "major" (though there’s only a 20% or less chance of success).

• Avoid properties that appear overly rough or in poor condition.

• Complete pest and building (P&B) inspections as part of offers (on verbally accepted estimated buy prices) with a reliable, quick inspector who can do it beforehand.

• Ensure P&B inspections are conducted and reported within the 3-business-day cooling-off period. This way, if you back out, the worst-case scenario is losing 0.25%. Additionally, this allows for negotiation opportunities. For efficiency, avoid relying on the client success team to order these; handle them promptly when a deal is likely.

• Don’t let sales agents rush you. They’re skilled at creating urgency, but often, it’s just a bluff. In Victoria, we have flexibility and can negotiate on our terms.

• If the property is clean and feels like a good fit, proceed with business as usual.

How to present the P & B findings

Letting Client know of P & B report Findings - Post Review

Victoria template below:

Western Australia template below:

All other states

How to negotiate on P & B items with agent

Email Template - P&B Negotiations with Agent

The agent has agreed on P & B negotiations

Email Templates - Solicitor - Negotiation Of Works

Woo, we’re unconditional!

What is a unconditional contract?

Unconditional email to send clients

Unconditional WhatsApp to send to the client

Learning Competency Checklist

1. Understanding the Pre-Exchange Process

• Competency: Demonstrate a thorough understanding of the critical steps that must be completed before contracts are exchanged.
• Pass Criteria:
• Clearly explains the need to complete due diligence (property condition, legal status), sales and rental pricing analyses, cashflow assessments, finance pre-approval, and contract review with a conveyancer.
• Can articulate the risks of skipping any of these steps, such as unforeseen issues or financial complications post-exchange.
• Fail Criteria:
• Omits key steps or undervalues their importance, leaving potential gaps in risk management and decision-making.

2. Updating Attio to Reflect Offer Acceptance

• Competency: Demonstrate the ability to update the internal system accurately once an offer is accepted.
• Pass Criteria:
• Moves the client brief from “Submitted Offer” to “Offer Accepted” in Attio and verifies that notifications (e.g., celebratory ribbons, WhatsApp alerts) are automatically triggered.
• Fail Criteria:
• Fails to update the brief or does so inaccurately, causing confusion or missed notifications among the team.

3. Conducting a Client Call to Celebrate and Outline Next Steps

• Competency: Effectively communicate with the client following offer acceptance to celebrate the milestone and detail the next steps.
• Pass Criteria:
• Uses a structured phone script to review the accepted price, explain the contract review process, discuss key clauses (e.g., P&B and finance), detail deposit amounts, and confirm the settlement date.
• Ensures the client understands that the contract will be reviewed by the solicitor, and outlines timelines (e.g., cooling-off period, deposit payment deadlines).
• Fail Criteria:
• Provides an unstructured or incomplete call that leaves the client unclear about next steps or key contractual details.

4. Sending a Comprehensive WhatsApp Recap Message

• Competency: Ensure effective follow-up by sending a detailed WhatsApp recap after the call.
• Pass Criteria:
• Uses state-specific templates to summarize all discussed elements such as offer accepted price, contract review process, deposit, and key dates.
• Confirms the client’s understanding and documents the discussion for internal review.
• Fail Criteria:
• Sends an incomplete or delayed recap, which may lead to miscommunication or a lack of record for team members and leadership.

5. Requesting the Contract of Sale from the Agent

• Competency: Demonstrate the ability to formally request the contract using a standard template if it is not provided automatically.
• Pass Criteria:
• Sends a clear, professional email to the agent requesting the contract of sale with all agreed-upon terms and conditions.
• Follows up appropriately to ensure receipt of the document.
• Fail Criteria:
• Neglects to request the contract or uses an ambiguous template that delays the process.

6. Confirming Purchaser Details

• Competency: Accurately verify that all purchaser details are correct before proceeding to signing.
• Pass Criteria:
• Cross-checks client-provided details (via WhatsApp or client brief) for accuracy, ensuring the names, entity details, and contact information match.
• Fail Criteria:
• Overlooks discrepancies or fails to confirm details, potentially leading to errors in the final contract.

7. Coordinating Solicitor/Conveyancer Review

• Competency: Ensure that the contract is reviewed by a solicitor or conveyancer before the client signs.
• Pass Criteria:
• Sends a review request email using a state-specific template and follows up until the solicitor confirms that all terms (including clauses and deposit details) are accurate.
• Fail Criteria:
• Proceeds with client signing without proper legal review or fails to address solicitor feedback.

8. Obtaining the Rental Appraisal

• Competency: Understand the necessity of a rental appraisal for finance purposes and demonstrate the process to request it.
• Pass Criteria:
• Uses the provided template to email the property manager for a rental appraisal and tracks the request until the appraisal is received.
• Fail Criteria:
• Neglects to request a rental appraisal or fails to follow up, delaying finance approval.

9. Understanding the Concept of an Exchanged Contract

• Competency: Clearly define and explain the significance of an exchanged contract.
• Pass Criteria:
• Explains that an exchanged contract is a legally binding agreement once both parties sign and date the contract, indicating the buyer is committed.
• Understands the implications of an exchanged contract and the subsequent steps required.
• Fail Criteria:
• Is unclear about the definition or legal impact of an exchanged contract, leading to potential mismanagement of the process.

10. Updating Attio After Contract Exchange

• Competency: Demonstrate proficiency in updating the internal system (Attio) once the contract is exchanged.
• Pass Criteria:
• Accurately moves the client brief from “Offer Accepted” to “Exchanged” and records the exchange date.
• Fail Criteria:
• Fails to update the brief status or does so incorrectly, leading to internal process errors.

11. Sending a "Next Steps" Email to All Parties

• Competency: Prepare and send a comprehensive "next steps" email to all relevant parties (clients, solicitor, broker, and client success team).
• Pass Criteria:
• Uses state-specific templates to outline responsibilities (e.g., contract review, deposit payment, inspection scheduling) and key dates.
• Ensures clarity and alignment among all parties involved.
• Fail Criteria:
• Sends an unclear or incomplete email, resulting in confusion about subsequent actions.

12. Providing Sales Agent and Property Manager Details

• Competency: Ensure that the client success team receives accurate contact details for the sales agent and property manager to coordinate inspections and extra checks.
• Pass Criteria:
• Uses the designated email template to send correct details immediately after the exchange email is sent.
• Fail Criteria:
• Omits necessary contact details or delays sending the information, hampering follow-up processes.

13. Explaining the Importance of Insurance

• Competency: Understand and communicate why insurance is critical in protecting the buyer’s investment and meeting lender requirements.
• Pass Criteria:
• Clearly explains that insurance covers unforeseen events (e.g., storms, tenant damage) and is essential for securing finance approval.
• Fail Criteria:
• Fails to address insurance needs or does not explain its significance, potentially exposing the buyer to risks.

14. Handling the Insurance Process Effectively

• Competency: Demonstrate knowledge of the key insurance timelines, location-specific factors, and recommended practices.
• Pass Criteria:
• Explains insurance timelines (e.g., by 5 p.m. on exchange day or next business day) and accounts for regional differences.
• Uses appropriate communication strategies to guide clients and coordinate with insurers.
• Fail Criteria:
• Is unclear about deadlines or neglects regional considerations, resulting in potential delays or increased premiums.

15. Understanding the Finance Process

• Competency: Explain the importance of finance pre-approval and how loan structure influences the purchase.
• Pass Criteria:
• Outlines the steps to secure formal finance approval, including working with the client’s broker and confirming loan details.
• Recognizes that finance approval is a precondition for an unconditional contract.
• Fail Criteria:
• Fails to secure or verify finance pre-approval, putting the transaction at risk.

16. Managing Pest & Building Inspections (P&B)

• Competency: Demonstrate the importance of conducting thorough P&B inspections before contracts are exchanged, and understand how to handle the associated clauses.
• Pass Criteria:
• Explains that P&B inspections uncover hidden defects and form a basis for negotiations or, if necessary, contract termination.
• Understands state-specific timelines and requirements for P&B clauses.
• Fail Criteria:
• Neglects P&B inspections or fails to use their outcomes to negotiate effectively.

17. Communicating P&B Report Findings to the Client

• Competency: Show the ability to review, summarize, and communicate the findings of the P&B report clearly and professionally.
• Pass Criteria:
• Uses a structured template to summarize the report, highlighting major and minor issues and setting clear expectations for negotiations.
• Follows up with a WhatsApp message and, if necessary, a phone call to address client concerns.
• Fail Criteria:
• Provides a vague or incomplete summary that leaves the client uncertain about the property’s condition or next steps.

18. Negotiating P&B Items with the Agent and Solicitor

• Competency: Demonstrate the ability to negotiate repair or discount requests based on the P&B report findings.
• Pass Criteria:
• Uses a clear, structured email template to initiate negotiations with the agent regarding specific items.
• Follows up with a corresponding email to the solicitor to formalize any negotiated changes.
• Fail Criteria:
• Fails to negotiate on critical P&B items or does so without a structured approach, jeopardizing the buyer’s interests.

19. Transitioning from Exchanged to Unconditional Contract

• Competency: Understand what it means for a contract to become unconditional and how to update internal systems and communicate this milestone to all parties.
• Pass Criteria:
• Explains that once all conditions (e.g., finance, P&B) are met and the cooling-off period expires, the contract becomes unconditional.
• Accurately updates the brief in Attio (moving it from “Exchanged” to “Unconditional”) and notes key dates.
• Fail Criteria:
• Is unclear about the unconditional stage or fails to update internal records properly, causing delays or miscommunication.

20. Communicating Unconditional Status and Next Steps

• Competency: Effectively communicate to the client and all stakeholders that the contract is now unconditional, outlining the next steps clearly.
• Pass Criteria:
• Uses state-specific email templates to inform the client, solicitor, broker, and client success team of the unconditional status, and outlines further actions (e.g., deposit payment, property management introduction, pre-settlement checks).
• Sends a follow-up WhatsApp message to celebrate the milestone and reinforce next steps.
• Fail Criteria:
• Provides ambiguous or incomplete communication, leaving the client or team unclear about the subsequent process.