Does anyone use a 66W certificate in contracts

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From: Skuma .


Hi,
I am wondering if it is common to have 66W certificate in a contract when they are selling a property? (esp. in Sydney/NSW)

I am in the process of selling a property in Western Sydney (through a realestate agent) and my solicitor has stated that is is common and their practice to have a 66W certificate in the contracts for their clients. However the real estate agents have stated that it is VERY UNCOMMON and that is makes a lot of potential buyers to baulk at signing the contract? Hence a standoff between the two with 100% opposite views? (hmmm do you trust a lawyer or real estate agent? ;-) )


Any advice you be appreciated,

Skuma.


BTW For those that don't know a 66W is a 'clause' in the contract that states that a solicitor has gone through the contract with the buyers and that they fully understand it... Therefore there is no cooling-off period in the contract.
It protects the seller by having a concrete contract and a definite sale and not having the property off the market for the (usual) 10day cooling-off period. (stop the buyer from pulling out on day 9). However it makes the buyer have to do all inspections BEFORE signing the contract as they are 'locked in' as soon as they sign it.
 
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Reply: 1
From: Yuch .


Hi Skuma,

I am not sure what other people do, but yes I do use one.

Regards
yuchun
~ The secret to success is to start from scratch and keep on scratching. ~
 
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Reply: 1.1
From: Frank Shead


Skuma,
This solicitor is your own guy endeavoring to protect you and get you money quicker. The real estate guy is protecting himself because he does not want the sale to fall over by allowing people to have second thoughts.

Simple solution get another solicitor.

A small point the finance companies insist in their lengthy mortgage documents that you must state you have seen a solicitor. This statement is normally witnessed by a JP.
Frank
 
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Reply: 2
From: Michael Way


The 66w clause is commonly used in the negative-geared property investment industry with buyers that are shown a property and exchange a contract on the same day - a "subject to finance" clause is used in place of the cooling off period. Although some vendors (developers) are not real keen on this - if the purchaser changes their mind it is reasonably easy to make a finance application fall over!
 
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Reply: 2.1
From: Duncan M


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> it is reasonably easy to make a finance application fall over!

Most of the Standard Contracts have extremely "Purchaser Prejudicial" (for
want of better words) clauses relating to Finance Approval. My advice is
ALWAYS modify a Standard Contract to more closely define Finance Approval.
State on the contract Who, When, What. ie:

Finance to be approved by National Australia Bank, Interest Only at 5.99%
for 5 Years by 14th February 2002 without Lenders Mortgage Insurance.
Deposit to be refunded in full within 7 days of 14th February if finance
cant be obtained.

Never leave out WHO you want the finance to be approved by as most contracts
state something along the lines of "Purchaser will use their best
endeavours" or "Purchase will make every effort", the Vendor will have you
running all over town looking for finance and most certainly your deposit
will be locked up whilst the insults are traded back and forth as everyone
attempts to define "Best Endeavour".


Duncan.

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<TITLE>RE: Does anyone use a 66W certificate in contracts</TITLE>



> it is reasonably easy to make a finance =application fall over!


Most of the Standard Contracts have extremely ="Purchaser Prejudicial" (for want of better words) clauses =relating to Finance Approval. My advice is ALWAYS modify a Standard =Contract to more closely define Finance Approval. State on the contract =Who, When, What. ie:

Finance to be approved by National Australia Bank, =Interest Only at 5.99% for 5 Years by 14th February 2002 without =Lenders Mortgage Insurance. Deposit to be refunded in full within 7 =days of 14th February if finance cant be obtained.

Never leave out WHO you want the finance to be =approved by as most contracts state something along the lines of ="Purchaser will use their best endeavours" or "Purchase =will make every effort", the Vendor will have you running all over =town looking for finance and most certainly your deposit will be locked =up whilst the insults are traded back and forth as everyone attempts to =define "Best Endeavour".


Duncan.




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