I want to buy a property and offer a long settlement ??? how???

[scha9799]

Hi all,

I would like to make an offer on a property in NSW
But I don't have enough deposit right now. My finance and deposit will be ready in 7 month.

I am thinking to put an offer for long term settlement ( at leaset 7 months)
Once my offer is accepted and contract exchange, then I have 7 months to settle the property.

Questions:

1)When does legal ownership take place ? on exchange date or settlement date ?

2)Do I liable to pay stamp duty on the exchange date or settlement date ?

3)If on the exchange date the contract is under my name, but after contract exchange and before settlement I decide to take another person as joint venture partner. Can my JV partner be on the property title as well or the JV partner has to be found before exchange date to be on the property title ???

5) is there any limit ( min or max days) for the cooling off period ? or as long as both buyer and seller are happy any period is ok ???

4) for the deposit in NSW is there any minimum deposit amount need to pay on the exchange date ? or as long as both buyer and seller are happy any amount is ok ??

5)If a contract have exchanged but before settlement, I found another buyer wants to buy the property. I then slip it to the new buyer. Does the new buyer has to pay stamp duty ? Do I have to pay stamp duty ?

Thank in advance
.

 

[Aaron_C]

1) Settlement
2) Settlement
3) Not sure about how it works in NSW but you can do that in Vic.
5) Usually cooling off period is 5 days but these days most vendors require a cooling off waiver before they will accept an offer.
4) As agreed between seller and buyer.
5) Again, consult someone about this.

 

[nathank]

3) you can on the contract of sale, put TBD or your name and have a letter agreeing with the vendor that you'll switch at settlement.

If you are financing the place, the bank will want to see the first page of the COS and validate who is buying the property. So be aware that you might have issues with the bank switching later.

 

[Terry_w]

1. Legal ownership changes at settlement, but you would have a beneficial interest in the property at exchange.

2. In NSW the stamp duty is payable within 3 months of contract date or at settlement whichever is earlier

3. This would be treated as a sub sale so both you and the new person would pay stamp duty - unless a family member under some circumstances.

4. No min

5. Both pay

 

[HotRod]

Good to have the property insured from exchange, not from settlement.

You wouldn't want to buy a pile of ashes, would you?

 

[M.Investigator]

Hey scha,

Asking for a 7 month settlement seems liek such a long time!

I often ask for 30 to 60 day settlements. Longest is usually 90 days to settle, but I haven't gone as long as 7 months.

Nonetheless, you can make an offer on that length of time. The probability of acceptance would be low, in my opinion, although it is possible to get it accepted, especially if the vendor can wait that long.

Tell us how it went with that offer. I'd be curious to find out if you were successful with it.

 

[Jtkumnick]

You'll end up paying a lot more for the property.

Few vendors want 7 month settlements.

No agents want to wait 7 more months to be paid for their work.

I think its best to wait until you are ready.

 

[marg4000]

A 7 month settlement will only appeal to a small part of the market, but can work for you with the right vendor.

Our son bought a property on a 6 month settlement. He was not particularly concerned about when he moved as he was keeping his previous PPOR as an IP. The vendor was building a new house, and our son negotiated a very healthy discount to the bank valuation as the vendor did not want to move into a rental while building and have the hassle and expense of two moves (and he needed the unconditional contract for new borrowings).

The agreement was that settlement would occur when the vendor gave 14 days notice.

In these circumstances it was a win-win outcome for both.
Marg