Cooling Off

[crossback]

All

should i cancell a contract within the cooling off period - do i have to justify to the agent / seller why i am backing off. Do i have to personally ask the agent to received it? should i inform my solicitor? what else are expected of me - and can i get the deposit back? i put it $2000 for an offer price of $350K+

offer is for a PPOR, first time buyer.

please help!!

 

[crossback]

bump..............

 

[bailz66]

I don't know that you normally get your deposit back and $2000 is quite high for just putting in an offer.

Did you have subject to finance/subject to building inspection.

If you had these just get your bank to say they wont finance and you will get all your money back

 

[ShaunW]

Hi Crossback, as far as I'm aware, you need no reason to cool off, as long as it's within the 'cooling off window'. As such, you should get back all your cash.
However, I'm in SA and thats the way it works here. You may want to get a locals opinion.

 

[yo yo ma]

should i cancell a contract within the cooling off period - do i have to justify to the agent / seller why i am backing off. Do i have to personally ask the agent to received it? should i inform my solicitor? what else are expected of me - and can i get the deposit back? i put it $2000 for an offer price of $350K+

CB
Is the contract in Queensland?
Why do you wish to pull out of the contract?
Was it bought at auction?
Is the contract subject to a building & pest inspection?
Is the contract subject to finance?
What date was the contract signed?

Qld Dept Fair Trading

Five-day cooling-off period (except for auction sales)
You are entitled to a cooling-off period of five business days when you sign a residential property sales contract (unless if buying at auction).

Often real estate agents or property developers arrange immediate finance for buyers who they invite to attend their property information sessions. Contracts you, the buyer, sign are therefore not subject to finance and you must go ahead with the purchase. The cooling-off period is designed to give you time to consult your own expert financial and legal advice and reflect on the wisdom of your purchase.

If you don't want to take advantage of the cooling-off period or you want to shorten it, you need to see a solicitor who will explain the consequences of giving up your rights and provide you with a solicitor's certificate.

If you don't want to go ahead with the contract during the cooling-off period, you need to write a letter telling the developer or agents that you want to end the contract and give it to them before the cooling-off period ends. You will be refunded your deposit less an amount equal to 0.25% of the purchase price of the property.

You should note that there is no cooling-off period for auction sales.

If the finance clause is in the contract, you may be able to pull out of it due to this & get you deposit back... You will have to say you were unable to get the finance though.

If the property fails a building & pest inspection, you may be able to pull out due to this & get your full deposit back.

If you satisfy the conditions above, you can use the cooling off period. It will cost you $875 (0.25% of the contact), so you can get some of your deposit back.

You don't have to justify anything with the cooling off period... Definitely contact your solicitor

 

[crossback]

contract was done in qld, private sale, signed yesterday so cooling off window is till Monday.

Walking away because of a "big" change in financial circumstances which i found out the day i signed the contract.

 

[yo yo ma]

Sometimes timing doesn't quite work out... Cheaper for you if you can pull out due to the finance clause (if it is there) but you might have to use the cooling off period, which will cost you less than $1k. Speak to you solicitor & good luck with it
Steve

 

[chran]

a "big" change in financial(

I feel sorry for you

Like others have stated, you could use your finance clause to 'escape'. Be aware that finance clause that comes from the vendor's conveyancer/ agent could have pitfalls (e.g. need proof finance rejection).

Your solicitor would be able to recommend you the better way.

 

[BayView]

bump..............

what does this mean?

 

[Ausprop]

same as a 'hello'

 

[bailz66]

It actually puts the post at the top of the list in the forum so more people see it instead of it sitting down the bottom

 

[yo yo ma]

what does this mean?

I think crossback was urgently needing a reply due to his situation. Wanted the post bumped to the top of the list to ensure people read it.

 

[urban cowboy]

for QLD...

you can pull out under the cooling off period without any excuse at all...don't let the agent bully you into giving one.

you MAY be charged a portion of the contract price as a penalty for pulling out...it is 0.25%. but sometimes you will just be let off and be done with it.

If you pull out at any stage you will receive a full refund of all monies paid unless there are special conditions stating otherwise (and you'll know it if there are.)

yoyo ma is right, if you pull out under finance, there is no penalty - at worst you will need to provide a note from your bank saying finance refused or similar - easy to organise with a quiet word to the manager/broker etc.

If you are still stuck - PM me and i'll help you further etc with more specifics as they realate to your situation.

at the end of the day...your solicitor will get you out of it if there is a last resort

hope this helps
cheers
UC

 

[Els]

I agree with the other postings here, definitely best to check with your solicitor about your options.

I just recently pulled out of one in QLD due to a poor pest and building inspection and I had the same chat with my solicitor. Given that the timing was still within the cooling off period, my solicitor said that it's cheaper to get out of it with either the pest/building clause or finance clause rather than the actually "cooling off period" clause due to the 0.25%. Btw my solicitors still changed ard $200 for the admin fees to get me out of the contract.

If you have the finance escape clause, it might be worthwhile to ask your broker / bank for a letter saying they have declined your loan application. I had to result to this when I missed the date for pest/building clause on another property in SA.

Hope that helps. Good luck with it !!!

Cheers
els

 

[tubs]

In Vic I believe you forfeit the right to a cooling off period if you use a solicitor. Not sure why. But anyway, check this with your solicitor and if thats the case in Qld, make sure you tell them that you arent using a solicitor.

 

[urban cowboy]

not the case in qld

 

[caterpillar]

In Vic I believe you forfeit the right to a cooling off period if you use a solicitor. Not sure why. But anyway, check this with your solicitor and if thats the case in Qld, make sure you tell them that you arent using a solicitor.

That's not correct in Victoria.