Penalties for crashing contract

[DCI]

Hi All,
Just wanted to confirm any or all of the penalties associated with each scenario
after signing a contract to purchase .
Note the property is in Brisbane.

1) Penalty for Pulling out during cooling of period ? $$
2) Penalty for contract crashing due to finance ? $$
3)Penalty for contract crashing due to building and pest? $$

Any other penalties that I may not have thought of....

Thanks guys

 

[James Allen]

1) 0.25% of purchase price under standard REIQ contract
2) Nothing - must inform vendors solicitor prior to cut off date Proof maybe required
3) Same as number 2

 

[LynnH]

What James said ...

Don't forget that you must notify the purchasers/agent before close of business on the finance/pest dates if there are any problems and you want to exercise your rights under these conditions - otherwise those conditions are regarded as being fulfilled and the contract becomes unconditional.

Cheers
LynnH

 

[Cola]

Hi, I am new to all this.
I have similar questions.

In the case where the sale is subject to finance.
Before I made the offer(or sign the contract), do I have to get a pre-approval? Or Seeking finance can all be done after?
Another question is, deposit pay upfront will be return if I can't get finance, yes?

Thanks for any help.

 

[Perp]

Before I made the offer(or sign the contract), do I have to get a pre-approval? Or Seeking finance can all be done after?
Another question is, deposit pay upfront will be return if I can't get finance, yes?

You can apply for finance after entering into a contract, provided you have a "subject to finance" clause written into the contract. If you are unable to obtain finance, you simply notify the vendor (usually your solicitor/conveyancer does this on your behalf) within the specified timeframe, and your deposit is refunded in full.

 

[Buzz]

Just a heads up if you do find something you like and want to make and offer - you may need to allow yourself extra time in your finance clause - which will not delight the vendors.

CBA taking 13 days to pickup a new application and RAMS similar most major lenders have terrible turn around times having preapproval in todays market is really important so your offer is accepted over someone elses.

Hope this helps.

Jane

 

[travelbug]

Is Subject to building and pest a standard thing on all contracts?

A friend's daughter- FHB was pressured into signing a contract (or she might lose it) in the agents office. She signed then got the pest inspection. There were problems. Now the agent is telling her she loses her deposit ($900). She's upset because of that plus the cost of the building and pest reports.