First home buyer questions

[Dawn]

I have made our first verbal offer but the agent asked to put it in writing, I have gone through the contract but have a few questions and would appreciate if you guys could help

1) The contract doesnt seem to have a subject to finance condition, do I need a lawyer for that or can a conveyancer can do it? However under the general conditions it does state that the contract will be subject to finance approval if the contract is subject to lender approval

2) The vendor has a reverse mortgage on the property, do I need to worry about that?

3)The property is subject to a special flood levy due to being near water drain/creek, but I cant find what the actual levy is and if its still applicable?

Any mortgagebrokers near the Heidelberg area?

 

[Peter_Tersteeg]

1) The contract doesnt seem to have a subject to finance condition, do I need a lawyer for that or can a conveyancer can do it? However under the general conditions it does state that the contract will be subject to finance approval if the contract is subject to lender approval

Is it a standard REIV contract (it will have a letterhead at the top of the main page). If so, you'll probably find the 'standard' finance clause on the page after the property details. You need to fill in the blanks.

If there is nowhere to put a finance clause, you can write it into the special conditions section. I'd word it along the lines of, "Subject to finance approval by the lender of purchasers choice within 10 working days of vendor signing this contract".

2) The vendor has a reverse mortgage on the property, do I need to worry about that?

Not something you need to worry about. The vendor has to organise to get their mortgage discharged, regardless of what type it is.


I can't really help with the flood levy bit, perhaps it's mentioned in the section 32 or the local council can clarify?

 

[Dawn]

Thanks for your input Peter

 

[Jake Milne]

Dawn before you offer get a conveyancer to review your contract and to help you with the special conditions, it's really important you do this to avoid costly mistakes.

Call Ron and Gail from Makin & Kinsey:
http://www.firstchoiceconvey.com.au/

Mention I referred you and get a free review of the 32.

I've signed hundreds of contracts but have never submitted it without a legal rep checking through it first.