Certified contract for FHOG/FHBG?

Z

Zeddy

I've decided to take advantage of the recent jumps in FHOG and signed a contract to settle on 15 Dec.

My problem is the lender is asking for a *certified* contract in order to apply for the FHOG/FHBG. Since contracts were signed via fax (ie I signed a contract and faxed, they signed and faxed back), no JP will certify my copy of the contract. The real estate agent has told me that a certifiable copy simply does not exist.

To get around this he went out and bought a stamp marked "This is a true copy" and signed underneath for the application. However the lender contact seems unsure whether this is acceptable.

I have contacted RevenueSA and queried them twice. They have repeatedly stated in writing that the contract does not need to be certified. However the lender insists the requirements are different for lender applications than individuals. This is despite me forwarding emails from both parties to each other (the lender refuses to deal with anyone but me directly).

Can anyone comment on this? Do I need a certified contract to apply through my lender for the FHOG/FHBG? Settlement is only 18 days away and I'm getting very anxious the two can't seem to agree!
 
Rolf

I am using a conveyancer, so I don't think he can certify contracts?

Edit: I just called my conveyancer and they said they'd run down an answer for me. According them the requirements for SA are different from other states/territories, and it should not be required.

Fingers crossed this is the last I'll hear of it...
 
http://www.revenuesa.sa.gov.au/forms/fhogapplicsa.pdf

Point 2A clearly states you do require it unless there is no COS involved e.d transfer between family members.

I'm actually suprised that the COS is only required to be signed by fax. I'd be interested to see such a contract be tested in court without original signatures. Why wouldn't the agent obtain 3 originally signed copies from yourself, then have vendor sign all 3 and retain 1 for themselves then return remaining 2 to the agent? The agent in turn forwards 1 copy to yourself. Now all 3 of you have an original.



Anyway,good luck with it.


Regards
Steve
 
Hi Zeddy,

I am an agent here in Adelaide and have always faxed copies of contracts to finance brokers and lenders without incident. a legible copy of your contract is acceptable in SA. Though your agent should have requested from both yourself and the vendor the originals be posted back to be kept on file.

Regards
Sam
________________________________________________________________________
www.ultimate.harcourts.com.au
 
Hi zeddy

Sam has it in one!

Have the Agent post a copy of the already signed and exchanged Contract to you, you sign it again in blue ink (so it can't be mistaken for a photocopy), post it back to the agent, who can then post it on to the vendor for another fresh signature, and voila! original signatures on the same page of the Contract.

Obviously, if the Contract can be driven around that will save time.

I have had customers who have faxed and signed, and no 'original' copy of the contract actually exists, so the countersigning enables the requirement to be met to the satisfaction of all parties.

I once had a really rude Estate Agent who could not be bothered walking NEXT DOOR to the pharmacists to have the original ink contract photocopied and witnessed. We got special permission from the SRO for me to drive to the Estate Agent's office and to witness the Contract. However, when I got there, I was presented with a photocopy in a sealed envelope and they had 'filed' the original. How could I witness the photocopy if I had not seen the original? I'm not into perjury. After much huffing and puffing they condescended to walk to the store room and retrieve the original for my inspection.

There is always a way around an obstacle, just find one that will enable you to have the grant ready for settlement

Cheers
Kristine
 
ahl said:
Hi Zeddy,

I am an agent here in Adelaide and have always faxed copies of contracts to finance brokers and lenders without incident. a legible copy of your contract is acceptable in SA. Though your agent should have requested from both yourself and the vendor the originals be posted back to be kept on file.

Regards
Sam
________________________________________________________________________
www.ultimate.harcourts.com.au
Click to expand...

The issue here is the SRO and their requirements for processing the FHOG. What you're saying is correct as far as the lender is concerned.
 
Bradsdad said:
http://www.revenuesa.sa.gov.au/forms/fhogapplicsa.pdfPoint 2A clearly states you do require it unless there is no COS involved e.d transfer between family members.
Click to expand...


Point 2A states:

Depending on the circumstances of your application, the following is required:
- Contract to purchase a new or established home or an off the plan home:
- a copy of the Contract for Sale, dated and signed by all parties; and
- a Confirmation of Settlement form.

Nowhere does it say a *certified* copy of the contract for sale? :confused:

The only thing that may be possible is if the *lender* wants a certified contract, not the SRO. However the lender assured me that is was the SRO who wanted it.

The email I received from RevenueSA stated:

This office can't comment on bank requirements. If you apply through RevenueSA you are not required to provide a certified copy of a contract. We encourage financial institutions to come into line with requirements for processing applications but if they are stipulating that a certified copy of the contract is required there is nothing I can do about that and it must be adhered to.
Click to expand...

Also I have spoken to my conveyancer, and have been informed that a certified copy should not be required - just a copy is sufficient.
 
If the lender is stipulating that a certified copy of the contract is required and they're processing the application, then you need a certified copy. If you don't provide it, they won't submit the FHOG application, you won't get the FHOG and you may settle late, with the late fees and penalties to be paid by you.

It really doesn't matter what anyone else says. If the party processing the application tells you it's required, they're unlikely to change their policy and providing a certified copy usually isn't a big deal at all.

In the past few months I've had finance applications for first home buyers in VIC, NSW, QLD and WA. All of them have required a certified copy or an original contract of sale.
 
PT_Bear, according to my conveyancer it IS a big deal at this stage. No contract documents can be issued at this stage without annulling the previous one and going through the entire process again. I have no desire to do that, and I doubt the vendor would be accomodating either.

My solution has been to secure a loan equivalent to the grant from family. If it comes to the crunch, I will use these funds to purchase the property. Once the property is settled, I can apply personally to RevenueSA, and I would definitely not need a certified contract.

I just don't like borrowing the money from family and repaying it 5 days after settlement. :(
 
Zeddy,

There is still time to try a different lender, are you going directly through a bank or through a broker. If you wish i can recommend a good local brocker who services adelaide and will definitely be able to sort this nonsense out for you,

Cheers

Sam

________________________________________________________________________
www.ultimate.harcourts.com.au
 
After this long discussion this probably is going to sound too simple, but anyway:

The lender clearly wants you to play by their rules. How about you just go with a faxed contract and it's photocopy to a pharmacist and ask them to certify the photocopy. Take the certified copy and submit it to the lender. This is what I did - worked for me.
 
I did that with a JP, but they would not certify it. I was not aware that a pharmacist would have different certification criteria compared to a JP?

The lender came back to me yesterday saying that they now have no problem submitting it... I think once it got past the initial rep to the FHOG/FHBG people they gave it the thumbs up. :p

Ahl, thanks for the offer, but the paperwork is already submitted. I have talked to other brokers, and they have stated it would be hard to match what is offered by the lender. It's just a matter of jumping through all the hoops initially.

Should all be fine now, fingers crossed. :)
 
The certification criteria is the same, so either it was dumb luck or they just don't really pay attention, them pharmacists :) I mean JP probably certify a lot more documents than anyone else and take their job seriously.

Fingers crossed, it will be fine, good luck!

All the best,
Chris.
 
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