No cooling-off period

[bas00]

We're in the process of buying a IP in NSW. The seller wants us to agree to drop the 5 day cooling-off period. Our finance is unconditional, the building/pest reports are fine, the conveyancer says she's done all she needs to do, and my application for a deposit bond will be through by Monday. I can't see any reason not to agree to what they want, but I'm wondering have I missed anything. I'm in QLD and this is the first time I've bought in NSW.
Thanks
Paula

 

[stgeorge5_8]

Think all is sweet bas....but i encourage other members to contribute.

I just think the seller is trying to make your commitment stronger. Thus ensuring if you pull out that you have to pay the commission that the agent would be entitled too. If your the only offer on the table and the market aint crazy like here in bne, i would try and keep it just incase. Who knows what could happen to your situation in 5 days (good or bad!) but if you are 100% confident you want it regardless i see know harm in ditching it.

Bare in mind if you do strike it out and anything comes up...the special condition that excludes the cooling off period should be written by a solicitor or similar. If made up by the agent you could probably get the contract voided.

good luck and happy investing

 

[bas00]

Thanks StGeorge5 8

The conveyancer said they would be trying to make sure we were more or less 'locked in.' We're happy with the price etc, and wouldn't want to lose it anyway. The market is a bit crazy there too, and the sooner we exchange contracts the better as far as I'm concerned.

 

[ggumpshots]

Thanks StGeorge5 8

The conveyancer said they would be trying to make sure we were more or less 'locked in.' We're happy with the price etc, and wouldn't want to lose it anyway. The market is a bit crazy there too, and the sooner we exchange contracts the better as far as I'm concerned.

5 days isnt much. if you give up 5 days what do you get in return.
Never give up something willingly. Always try to get something in return.

Get a price reduction for 5 days early.
It wont hurt to see what happens.
When he says no you can always agree to give it up if you want to.

 

[stgeorge5_8]

Thanks StGeorge5 8

The conveyancer said they would be trying to make sure we were more or less 'locked in.' We're happy with the price etc, and wouldn't want to lose it anyway. The market is a bit crazy there too, and the sooner we exchange contracts the better as far as I'm concerned.

syd is starting to take a bit of a dive i heard, and per evened off...bne really the only market still firing. probably only going to get worse still. 27 days on the market is just impossible to work with! budget predicts a shortage of housing next year too from memory.

 

[BV]

We're in the process of buying a IP in NSW. The seller wants us to agree to drop the 5 day cooling-off period. Thanks
Paula

Did he say why he wants it dropped?
cheers

 

[Kristine..]

We're in the process of buying a IP in NSW. The seller wants us to agree to drop the 5 day cooling-off period. Our finance is unconditional, the building/pest reports are fine, the conveyancer says she's done all she needs to do, and my application for a deposit bond will be through by Monday. I can't see any reason not to agree to what they want, but I'm wondering have I missed anything. I'm in QLD and this is the first time I've bought in NSW.
Thanks
Paula

Hi Paula

You haven't said why the vendor wants you to set aside a term of the Contract which is there because it is required by legislation to be there.

Contracts are governed by the law of the land. The vendor is actually making an unlawful request and is putting themself in a weaker position because of it. If you chose to avoid the sale at a later date, you could claim that you were coerced into an unconditional contract before you had had time to fully consider your position.

As there is no material benefit to the vendor and certainly no benefit to you to waive the cooling off period, I am puzzled as to why you have even considered doing so.

And very puzzled if your conveyancer is not advising you otherwise.

cheers

Kristine

 

[jrc]

The seller is not making an unlawful request. The law provides in nSW that the purchaser can waive the colling off period. Possibly the Vendor needs to be able to enter into an unconditional contract for another property.

The purpose of the cooling off period is to let you get building, pest reports after you have signed a contract so yiou can't lose the property by being gazumped and to give you the opportunity to get out of the contract if they are not satisfactory.

If those reports are satisfactory and presumably the exchange of contracts has already been delayed while you were waiting for them there's no loss to you by agreeing. But in my opinion you would be foolish to want a reduction in price for agreeing. Either agreee to waive the cooling off or don't agree but don't waste more time trying to get a discounted price.

 

[bas00]

Thanks everyone for your replies. I've only been told by the convey. that they probably want to make sure we won't change our minds. I suspect that they have another contract to buy elsewhere but I don't know for certain. It doesn't really affect me anyway. I know they have to put in a legal request to drop the cooling off period, some partic. form I've forgotten the name of at the moment. I can't see that it makes any difference to me, as we've done everything we need to do and are quite happy with everything. Personally I can't see why you'd bother changing things just for five days. But thought I might have missed something.
Paula

 

[ggumpshots]

The seller is not making an unlawful request. The law provides in nSW that the purchaser can waive the colling off period. Possibly the Vendor needs to be able to enter into an unconditional contract for another property.

The purpose of the cooling off period is to let you get building, pest reports after you have signed a contract so yiou can't lose the property by being gazumped and to give you the opportunity to get out of the contract if they are not satisfactory.

If those reports are satisfactory and presumably the exchange of contracts has already been delayed while you were waiting for them there's no loss to you by agreeing. But in my opinion you would be foolish to want a reduction in price for agreeing. Either agreee to waive the cooling off or don't agree but don't waste more time trying to get a discounted price.

Maybe your right.
But would it be a waste of time .........10 seconds .........to see what the vendor said?You have to ask to find out, right?
Remember the vendor is bargaining to quicken the sale , so tango a bit and see what happens. I figure a $100 for 10seconds work is acceptable. Negotiation isnt a science , cut and dry but an art

 

[Firsthomelooker]

It is very common for the cooling off period to be waived. In both NSW and the ACT alot of law firms when preparing contracts will include a '66W' certificate (NSW) or 's13/s17' certificate (ACT) as a matter of course. It is very convenient for a vendor who is looking to buy elsewhere, or even just to make arrangements to move etc. Even if the vendor was willing to leave it in I would still get all the reports etc. done before exchange because if you pull out during the cooling off period you loose 0.25% of the property price... on a modest $200 000 property that is $500 better spent on the reports for the next property you look at.

On the other hand, in your case by the sounds of it you only have a conveyancer, not a solicitor. You need a solicitor to sign a s66W certificate because the certficate effectively says you have recieved advice about the legal ramifications of waiving the cooling off period. At a guess I would say a solicitor would charge $50-$100.

 

[tubs]

What's in it for you? What do you get in return.

No way should you give up something like this JUST because they asked you to. After all, its highly unlikely you'll use the cooling off period, but if you give it up, and find that you shouldnt have, you'll be sorry.

(Unless of course, they wont sign unless you do give it up, that's different I guess)

 

[Ajax]

How about this special condition in a contract for a property in NSW I was looking to purchase:-

"The deposit referred to on Page One of this Contract shall be released forthwith to the vendor."

That's 10% of the purchase price going straight to the vendor on exchange.

Ajax

 

[Firsthomelooker]

Very risky, I wouldn't do it personally. It means if the vendor defaults you have to chase them to get your 10% back... and if they have spent it all that can be a very difficult, drawn out and expensive process.

 

[Maverik]

If you have unconditional approval and have done the pest, building check's etc then why do you need a cooling off period?
Essentialy your still in a position to negotiate the price and exchange i would think.

 

[Bargain Hunter]

Paula,

A change in terms presents an 'opportunity' to negotiate.

If there is nothing in it for you you don't need to negotiate, if it causes you stress you don't need to negotiate, if you don't care then drop the cooling off period... or not.

Price is the only point open to negotiation.

Is there something you want that isn't in the contract; furnishings, an old motorbike in the shed, early access, delayed settlement, a one eyed cat....

Personally I'd use the WIIFM rule, and if there were no benefits I'd just let them wait the five days. It's cheap insurance for a change in circumstance.

Regards

Andrew