Hi,
I've done a bit of a search and couldn't find anything directly explaining this..
I'm in the process of buying a $770k apartment in inner Sydney. I've had some complications with financing as discussed here: http://www.somersoft.com/forums/showthread.php?t=55471
Also, we originally signed a contract of sale with a 10-day cooling off, but it was never countersigned, which we subsequently found out was because the vendor had receivers appointed.. That's another story, but I confirmed with the receivers today that everything is to proceed as normal.
So as I'm a first home buyer, I urgently need to exchange with a cooling off period before October 1 to avoid losing $3500 of FHOG benefits.
However, my finance still hasn't come through and if you read the details of my finance (GF has a default of a David Jones store card), I can't afford to risk exchanging unconditionally without some subject to satisfactory finance clause.
I was under the impression that subject to finance clauses, although somewhat undesirable to vendors, are common practice. My conveyancer begs to differ though and says he would be shocked if they accepted those terms, and that the consumer credit code specifies that you must enter into the contract with finance already confirmed.
Is this the case?
Should I just wear the $3500 loss of FHOG and not exchange until I have finance approved?
There is VERY little chance of being gazumped. Firstly because the property never hit the market. I am the current tenant and I made an offer to the REA before they did their marketing. Secondly because it's now in the hands of receivers and they're motivated to push the current sale through and not spend money and time on marketing and renovation. (the original marketing plan was to first enclose a second bedroom to match a similar sale in the building).
I've done a bit of a search and couldn't find anything directly explaining this..
I'm in the process of buying a $770k apartment in inner Sydney. I've had some complications with financing as discussed here: http://www.somersoft.com/forums/showthread.php?t=55471
Also, we originally signed a contract of sale with a 10-day cooling off, but it was never countersigned, which we subsequently found out was because the vendor had receivers appointed.. That's another story, but I confirmed with the receivers today that everything is to proceed as normal.
So as I'm a first home buyer, I urgently need to exchange with a cooling off period before October 1 to avoid losing $3500 of FHOG benefits.
However, my finance still hasn't come through and if you read the details of my finance (GF has a default of a David Jones store card), I can't afford to risk exchanging unconditionally without some subject to satisfactory finance clause.
I was under the impression that subject to finance clauses, although somewhat undesirable to vendors, are common practice. My conveyancer begs to differ though and says he would be shocked if they accepted those terms, and that the consumer credit code specifies that you must enter into the contract with finance already confirmed.
Is this the case?
Should I just wear the $3500 loss of FHOG and not exchange until I have finance approved?
There is VERY little chance of being gazumped. Firstly because the property never hit the market. I am the current tenant and I made an offer to the REA before they did their marketing. Secondly because it's now in the hands of receivers and they're motivated to push the current sale through and not spend money and time on marketing and renovation. (the original marketing plan was to first enclose a second bedroom to match a similar sale in the building).