I've had exactly the same advice from my accountant, the structure must exist before the contract is signed. (This advice was given in Victoria)
Best settlement terms for this deal?
- Thread starter ozi
- Start date
I've had exactly the same advice from my accountant, the structure must exist before the contract is signed. (This advice was given in Victoria)
Ozi, keep in mind that there is a small percentage of signed purchase contracts that never settle for one reason or another. What you don't want to do is spend a whole lot of money on the owners house (and it is their house until the settlement is complete) and then have the settlement fall over.
Good Luck
Thanks mdk92, I too have been advised this is the case.
Yes, this is a risk. Even if I was given access, I probably wouldn't be spending large amounts of money on the house before settlement. I would only be doing things like cleaning out the gardens, preperation, etc. Being able to measure up so that I can plan and get quotes would be great as this is normally the most time consuming part of the process.
Thanks for the great advice everyone. I will hopefully have an answer from the owner tonight/tomorrow.
Regards,
Ozi
Offer accepted
Hi all,
I spoke with the owner last night and put in my final offer. I offered $290k with a 12 month settlement, but also requested early access in order to measure and get quotes. He had been doing some thinking about settlement and now believes a 6 months settlement is better for him with the option of renting back a further 6 months. I told him I was happy with this
He will be meeting with his solicitor this week to draw up a contract so I guess until then nothing is gauranteed. Hopefully all goes well. Fingers crossed!
Thank you everyone for the helpful advice. I will keep you posted on how things turn out.
Kind regards,
Ozi
Hi all,
I spoke with the owner last night and put in my final offer. I offered $290k with a 12 month settlement, but also requested early access in order to measure and get quotes. He had been doing some thinking about settlement and now believes a 6 months settlement is better for him with the option of renting back a further 6 months. I told him I was happy with this
He will be meeting with his solicitor this week to draw up a contract so I guess until then nothing is gauranteed. Hopefully all goes well. Fingers crossed!
Thank you everyone for the helpful advice. I will keep you posted on how things turn out.
Kind regards,
Ozi
Remember to tell us more about it once the deal is signed and unconditional!
Cheers,
Jen
Will do!
Ozi
Contract "finally" signed - now the fun begins...
Hi all,
It has been a while since I posted so I thought I'd give you an update. The past few weeks have been nerve racking to say the least. The owner accepted my written offer of $290k with a 12 month settlement about 3 weeks ago. It took his solicitor about 2 weeks to get the contract drawn up, however during this time the seller had more time to think about things and wasn't sure about the 12 months settlement. Since he wanted to start building his new house soon, he needed cash so we then changed the settlement to 6 months with the option to rent back a further 6 months. A few days later he then decides he wants a 3 month settlement with the option to rent back 9 months. This was fine with me.
To add to this, his friend's friend who also happened to be looking for a property in the area found out he was selling, so they too went and looked the property. I'm not sure if this is true or not, but he said they were interested and were speaking to the bank to see if they can obtain finance. Anyway to cut a long story short, in the end he accepted my offer of $290k with a 3 month settlement, plus 9 months rent back at $250 p.w (which is premium rent for something in this condition). My guess is, even if the other party was interested, they probably weren't as flexible with settlement terms as I was.
I finally signed the contract a couple of days ago, subject to a satisfactory building and pest inspection. The pest inspection was done today and I’ll post the details in another thread. The inspection didn’t go all too well. There is serious termite damage in a few areas and a lot of question marks around others. These are obviously costs which I hadn't budgetted for. I was meant to have a building inspection done this afternoon but cancelled it as I wanted time to think things through. I’m not sure whether I’ll go ahead with the purchase at this stage.
Oh, the house is in Yarraville. A great spot – close to the shops, train and city views.
I’ll keep you posted!
Cheers,
Ozi
Hi all,
It has been a while since I posted so I thought I'd give you an update. The past few weeks have been nerve racking to say the least. The owner accepted my written offer of $290k with a 12 month settlement about 3 weeks ago. It took his solicitor about 2 weeks to get the contract drawn up, however during this time the seller had more time to think about things and wasn't sure about the 12 months settlement. Since he wanted to start building his new house soon, he needed cash so we then changed the settlement to 6 months with the option to rent back a further 6 months. A few days later he then decides he wants a 3 month settlement with the option to rent back 9 months. This was fine with me.
To add to this, his friend's friend who also happened to be looking for a property in the area found out he was selling, so they too went and looked the property. I'm not sure if this is true or not, but he said they were interested and were speaking to the bank to see if they can obtain finance. Anyway to cut a long story short, in the end he accepted my offer of $290k with a 3 month settlement, plus 9 months rent back at $250 p.w (which is premium rent for something in this condition). My guess is, even if the other party was interested, they probably weren't as flexible with settlement terms as I was.
I finally signed the contract a couple of days ago, subject to a satisfactory building and pest inspection. The pest inspection was done today and I’ll post the details in another thread. The inspection didn’t go all too well. There is serious termite damage in a few areas and a lot of question marks around others. These are obviously costs which I hadn't budgetted for. I was meant to have a building inspection done this afternoon but cancelled it as I wanted time to think things through. I’m not sure whether I’ll go ahead with the purchase at this stage.
Oh, the house is in Yarraville. A great spot – close to the shops, train and city views.
I’ll keep you posted!
Cheers,
Ozi
Pest Inspection
Hi all,
Here is a link to the findings of the pest inspection I had done:
http://www.somersoft.com/forums/showthread.php?p=245395
Regards,
Ozi
Hi all,
Here is a link to the findings of the pest inspection I had done:
http://www.somersoft.com/forums/showthread.php?p=245395
Regards,
Ozi
I pulled out of contract
Hi all,
Well after doing some serious thinking over the weekend, I have decided not to proceed with this purchase. I spoke with the owner last night and he wasn't willing to negotiate and I don't see this as being a feasible purchase anymore, not now given the findings of the pest inspection. Just as well the contract was subject to a building and pest inspection to my satisfaction.
One thing that did suprise me was the owner asked if I would mind any future buyers contacting me for a copy of the pest report. Ok, he now knows the property has an extensive termite problems, so why advertise it? Maybe he is just a good, honest person. I think he is more worried about putting up with another pest inspector spending 3 hours searching his property back to front again If he lists the property with an agent, I wonder what they would think of him actively promoting the termite problem. Actually, he doesn't really see the termite problem as an issue. He has now come to the conclusion that every house in Yarraville must have the same problem.
Anyway, no harm done. I've learnt a lot from this deal, even though it wasn't a successful one. I'll move onto the next one now. Thanks for your help everyone
Regards,
Ozi
Hi all,
Well after doing some serious thinking over the weekend, I have decided not to proceed with this purchase. I spoke with the owner last night and he wasn't willing to negotiate and I don't see this as being a feasible purchase anymore, not now given the findings of the pest inspection. Just as well the contract was subject to a building and pest inspection to my satisfaction.
One thing that did suprise me was the owner asked if I would mind any future buyers contacting me for a copy of the pest report. Ok, he now knows the property has an extensive termite problems, so why advertise it?
Maybe he is just a good, honest person. I think he is more worried about putting up with another pest inspector spending 3 hours searching his property back to front again If he lists the property with an agent, I wonder what they would think of him actively promoting the termite problem. Actually, he doesn't really see the termite problem as an issue. He has now come to the conclusion that every house in Yarraville must have the same problem.Anyway, no harm done. I've learnt a lot from this deal, even though it wasn't a successful one. I'll move onto the next one now. Thanks for your help everyone
Regards,
Ozi
