Outstanding rates, BC charges

Hi, I think this might be a fairly basic question, but it's worth asking. We may be about to buy an IP - some argy bargy on price and conditions and the deal is currently off, but I suspect it may be resurrected next week.
Anyhoo. The vendor has a few financial issues - among them nearly $3000 in outstanding rates (almost three years worth) and about $1000 in outstanding body corp fees. I asked the agents for confirmation that these would be sorted out at settlement and not passed to us if we became the new owners. They said that was the case - and why would I doubt them?
Actually, I do, a teeny bit. Is it something you have to make sure is written into the contract? Or does it happen automatically? Advice? Suggestions? All welcome, cheers.
 
The vendor has a few financial issues - among them nearly $3000 in outstanding rates (almost three years worth) and about $1000 in outstanding body corp fees. I asked the agents for confirmation that these would be sorted out at settlement and not passed to us if we became the new owners. They said that was the case - and why would I doubt them?
The agent speaks the truth (this time :)). Actually if I was the vendor, I'd be really annoyed that my agent had disclosed my financial situation to you :mad:

Is it something you have to make sure is written into the contract?
No

Or does it happen automatically?
Yes - your solicitor will see that outstanding rates & BC fees are paid out of settlement monies.
 
Thank you, prompt and helpful as always.
Actually, the agent hasn't disclosed that information - it's in the section 32, on the rates notice and the owners' corporation report.
Cheers:)
 
Yeah.
Handy info to have, though, nonetheless - when making a low-ball offer on a place that's been on the market for a few weeks.;)
 
Awh come on. You are just taking advantage of someone in financial distress. You greedy investors make me wanna puke! ;):p:D

Greedy investors! did you see my signature? We don't even have one IP yet - and we're looking in scummy no-one-in-their-right-minds-would-buy-Melbourne-inner-west (did you see all those other threads?).
But thank you. Your advice is genuinely appreciated. We might get a deal on this - or we might not - yet. Do I feel a bit bad? Yeah. On the other hand, I've had a few financial issues in my time and I've always managed to pay things like rates.
Oh, and we're looking at paying about 50% more than this bloke paid for the same place about five years ago. And the returns are still ok. Not flash, admittedly. But still pretty good - at least, IMHO - did everyone see my sig? I KNOW NOTHING! :rolleyes:
 
Outstanding rates etc comes up in the fine print in SA too, its not really a privacy issue. You need to know, and you don't pay any extra for it.

When you buy a house with outstanding rates (been there, done that, twice) the solicitor pays them all out of the settlement funds on behalf of the vendor, and they usually pay the remainder of the current financial year's worth out of yours, although I guess you could ask them not to. If the vendor owes a fortune in back rates, they just get a lot less for the house when it is sold.

I bought a house on the last day of the financial year last year and got a note on the settlement statement for $2 for the rest of the year's council and water rates :)
 
Thanks RE, that's pretty much how I was assuming it would go. But didn't want to assume all the way up to a signed contract - and haven't bothered the conveyancer yet. cheers:)
 
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