Is this normal?

E

Electro

Hi,

I've just received the section 32 on a property I am interested in. On the first page it says the following:

dgl26x.jpg


Is the highlighted part standard in VIC?

If you wish to exercise your right during cooling off period to cancel the contract does, for example, a $1000 fee for a $500000 property sound about right?
 
Yep, all standard fare. Like Y-Man however, I have only "cooled off" once and my whole deposit was refunded as well.
 
Thanks guys. For some reason I've read a few other s32 but have never spotted that clause so I just wanted to be sure.

Is the 3 day cooling off period standard as well? Is that usually enough time to sort out the conveyencing? Can you negotiate for a longer period - say 5 days?
 
seems standard, in qld you also looking at .25% so on par. most cooling off is 3 days or 5 days, you don't get long. the purpose of it really is so you can sign on the spot if you want to, and then take the contract to your solicitor and say look what i've done..do you see any problems? then if they do you pull the pin. there may be other reasons to cool off..eg if you were pressured and then change your mind or you uncover something nasty about the property etc. but you don't get long.

I don't know if you can negotiate a longer period - i haven't heard of it as its sort of a consumer protection clause rather than a contract clause..? Its also sometimes common to waive the cooling off period, you have to get a lawyer to do it but in a hot market the sellers often demand it. I bought a house in NSW once where the seller stipulated that I must waive the cooling off period as part of the deal. so the solicitor had to do a letter to say I received legal advice on the matter so that it could be waived.
 
Electro said:
Thanks guys. For some reason I've read a few other s32 but have never spotted that clause so I just wanted to be sure.

Is the 3 day cooling off period standard as well? Is that usually enough time to sort out the conveyencing? Can you negotiate for a longer period - say 5 days?
Click to expand...

Completely standard; written into legislation, in fact. As Y-man suggested, check out s31 when you get a chance.

If you terminate the contract based on the cooling-off provisions, then it is only three days (clear business, so weekends and public holidays don't count) and the vendor is entitled to keep the .2%. If you exit the deal based on another clause that you might include - such as finance, building inspection - then you may have more time up your sleeve and may not be up for the penalty either.
 
Ok great. Thanks for the input guys.

I'm getting close to putting an offer down. I've read the Contract of Sale and it appears to be ok (similar to other I have read and faily standard as far as I can tell). I can 't see anything out of the ordinary.

Should I draft my own letter of offer or is it ok to use the agents standard form in your opinions? Basically I want to personally inspect the property one more time (as in just me and agent not OFI) and then put my offer in after adding a subject to finance clause and agreeing the ideal settlement period with the vendor. Does that seem ok?
 
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