contract conditions

[scott]

We often hear of conditions added to contracts such as: subject to finance, subject to satisfactory pest inspection etc.

But how, where and at what point is it done.
Typical scenerio in NSW:


1 Offer a price for a property

2 agent after speaking with owner says yes

3 agent gets you to sign 'contract for sale of land' there and then and hopes to get a 0.25% holding deposit from you.

4 take this to solicitor (conveyancer) for pest and building inspections.

At this point is it too late? Should you offer a price and if accepted take the contract with you to a solicitor and let him insert all the conditions you want and then go back to the agent?

Any help would be appreciated.

Scott

 

[Kiwi Investor]

At the point where you fill out the contract with the agent any conditions should be added to the contract at this point. Such as your finance pest and building inspection etc. Try a search on contracts, this may also help.

The conditions then form part of the contract.

K

 

[Fish]

Hi Scott,

I like to put forward my offer price and all conditions in typed format so that they're upfront and form part of the negotiation.

I'll address it to the agent to give to the vendors, thank them for their time, note a few points why I'm offering what I'm offering, then hit them with the offer details - name of property, agent's name, my offered price, deposit amount, settlement days, early access if desired, my 'subject to' clauses with times eg. subject to building inspection to my satisfaction within 10 working days etc, and my sunset clause in bold so they know when the offer expires.

Don't know what others do, but this format suits me because I get everything across in one hit, leaving no room for misunderstandings. It's out there and obvious.
Just make sure you translate your offer conditions onto your contract of sale 'before' signing it.
Cheers
Fish

 

[The Y-man]

Hi Scott,

I like to put forward my offer price and all conditions in typed format so that they're upfront and form part of the negotiation.

Cheers
Fish

Nice one I never thought of that!

Cheers,

The Y-man

 

[asdf]

Nice one guys but unfortunately in NSW, the sales process totally disadvantages the buyers. Unlike Vic, Qld and WA, you can't put conditions on to the contract, have up to a month to get them ticked off then go unconditional. In NSW, you have to do all these due diligence prior to exchange and even if the vendor agrees in principal for you to do all these or takes a token deposit, you can still easily be gazumped after coughing up hundreds or thousands to do your due diligence prior to exchange. Now that the market is quiet, good to see the vendors and agents struggle with their listings - put some power back to the buyers I say!

 

[Rolf Latham]

Hi ASDF

Once you exchange subject to cooling off with the .25 % deposit the property is OFF the market for the agreed period - usually at least 5 days.

Agree that NSW contracts are some of the worst for buyers with qld likely the best.

ta

rolf