First IP Solicitor Help/Opinon

[Brizza]

Is it the usual method to put a $1000 deposit on a property then carry out building inspections etc. then sign the contract or is it to put $1000 down then sign the contract subject to building inspections being satisfactory? And if so, what is a reasonable time period to get that?

Because my solicitor is telling me that I should get the inspections done first (even though the vendor has no obligation to sell it to me as of yet), then sign the contract as this is the normal way.

 

[shazza]

Unless you're in an auction situation the usual sequence is sign the contract (with condition subject to satisfactory to purchaser building AND pest inspection - and finance if you need it), give $1000 deposit, get the contract countersigned by vendor, get copy of countersigned contract and then arrange building and pest inspection. Time frame for inspections should be about 7 working days (inspections normally only a take a few days to organise but this'll give you little leeway). BTW this Queensland.

If this solicitor is to act as your conveyancer - personally I would find another one because one doesnt seem to know anything about RE.

cheers Sharyn

 

[Brizza]

So the usual process is (non-auction)

- Sign Contract
- $1000 deposit
- Get vendor to countersign
- Then building & pest inspections

My solicitor (who was contacted by the Real Estate agent before I did) is telling me that it is pointless to get contract first then do inspections. He says

- $1000 deposit (which I had already done already)
- Building and Pest Inspections
- Contract with no clauses signed by both parties

 

[shazza]

The whole setup sounds really dodgy to me.
1. Why has a RE agent contacted your solicitor before you? Here in Qld they dont know who will be acting for them until they write out a contract. Smells like collusion to me.

2. I personally would NEVER sign an unconditional contract - you will be bound by law by contract even if you find something wrong in the later inspections.

3. I think in your gut you know something is wrong or wouldnt have written in. If you have any doubts, walk away now, there'll always be another opportunity but if will take a lot longer if you're ripped off.

Good on you for seeking more info - you're already taken a positive step towards successful investing.

cheers Sharyn

 

[willair]

So the usual process is (non-auction)

- Sign Contract
- $1000 deposit
- Get vendor to countersign
- Then building & pest inspections

My solicitor (who was contacted by the Real Estate agent before I did) is telling me that it is pointless to get contract first then do inspections. He says

- $1000 deposit (which I had already done already)
- Building and Pest Inspections
- Contract with no clauses signed by both parties

Brizza,
1.offer
2 acceptance
3 an intention to enter into legal relations.
4 sufficient Consideration
5 a capacity to contract
6 legality of purpose
7 genuine consent
8 certainty of terms.
imho,
did you enter into this contract,with no clauses,if you have
then i think you have a problem.
good luck
willair

 

[Robyne]

In NSW the sale of land is governed mainly by legislation rather than common law. The Conveyancing Act states that a contract for the sale of land must be in writing so although offer and acceptance would nomally lead to a contract, in the sale of land it does not. You can offer they can accept and legally there is still no contract until it is in writing and, usually, until an exchange of the contracts has taken place.

Can't tell you about other states.

Robyne