Exchange Cotracts

From: Jay Hunter


Hi,

I'm looking to buy a property but the owner keeps getting cold feet and changing their minds !! (Happened twice now). I want to get a strata inspection and Building inspection done before I commit 100%.

Should I exchange contracts and use my 5 day cooling off period to get all inspections... and risk losing 0.25% if they come back bad ?
or should I just get these reports before exchange and risk being out of pocket if the owner changes their mind again or get guzumped ?


is there any other options ?

thanks again,
jay
 
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Reply: 1
From: Rolf Latham


Hi Jay

In a warm market you have to be prepared to bury the holding deposit if things come back bad.

having said that, the .25 % does nothing to secure a deal either.

Ta

Rolf
 
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Reply: 1.1
From: Jay Hunter


Hi Rolf,

I thought once the contracts were exchanged the owner could not decide to take the property off the market or sell it to another person... but the buyer could still pull out if building reports came back bad etc... (but sacrifice 0.25% of the 5% or 10% holding deposit.)

Am I misunderstanding something ?

Thanks,
Jay
 
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Reply: 1.1.1
From: Rolf Latham


Hi Jay

Im not a legal bod (ahhhh), in NSW you normally use your cooling off for inspections.

Under standard contract once you exchange shes yours (often worng but never in doubt :eek:)

Ta

Rolf
 
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