Getting out of an Unconditional Contract - Is it possible?

[Terryw]

Hi Terry,

When you say accepting a 14 day settlement, you are talking about receiving certificate of occupancy, etc?

Your second paragraph is new to me and I didn't understand.

Sunset date is still 15 months or so away.

I did take it to my solicitor but he didn't say much, I was surprised by this. He is usually very diligent and has been for over twenty years. I would not want to take action against him, he has been very good for me until now.

They never said I was fully approved as I wasn't seeking a loan with them. It was simply a qualification that I am in a position to settle. After reviewing my credit file and doing some numbers on how much I earn, his much deposit I had, etc. They decided I was qualified.

Contract probably does say that, but are salespeople allowed to say anything they want? I wouldn't think so.

There is no need for bankruptcy and no other assets to worry about.

Good post there Terry

Hi PI

Yes the settle within 14 days of being notified of xxx is a bit too steep. Realistically you won't have a valuation done at this stage, but may have a pre-approval which as probably expired. So the lender needs a valuation done and then a day or so after the return of that to issue the full approval. Then you have to wait for documents to be printed and sent to you and you sending them back. Lenders generally want 10 days to settle after receiving them back.

So why would you accept 14 days? You should ask for 28 and maybe accept 21 days if you have to. Something like this is reasonable to ask for and developers will usually accept.

For the second paragraph, there is legislation that says certain things must be disclosed within the contract. If they are not disclosed then this may give the purchaser the right to rescind. Off the plan contracts are more complex that the usual ones so it is easy for something to be overlooked and thereby not disclosed.

 

[Property Invest]

Hi PI

Yes the settle within 14 days of being notified of xxx is a bit too steep. Realistically you won't have a valuation done at this stage, but may have a pre-approval which as probably expired. So the lender needs a valuation done and then a day or so after the return of that to issue the full approval. Then you have to wait for documents to be printed and sent to you and you sending them back. Lenders generally want 10 days to settle after receiving them back.

So why would you accept 14 days? You should ask for 28 and maybe accept 21 days if you have to. Something like this is reasonable to ask for and developers will usually accept.

For the second paragraph, there is legislation that says certain things must be disclosed within the contract. If they are not disclosed then this may give the purchaser the right to rescind. Off the plan contracts are more complex that the usual ones so it is easy for something to be overlooked and thereby not disclosed.

Thanks Terry, that is some advice I will use in my next purchase. It makes sense when you put it like that.

That second paragraph makes more sense now. I will need to have a look at the contract a little more closer.

Thanks again.

 

[Aaron_C]

Thing is in OTP purchases all the power rests with the vendor. You will most likely not be able to negotiate on things like 14 day settlement as these are very, very standard clauses.