searches

[pantotango]

Just wondering if anyone can help. We had a contract on a investment home which due to lack of finance fell through. Ive just received a bill though from the solicitor and we have been charged around $400 for searches. I did not think that the searches were supposed to be done untill after finance approval.
Am I right in thinking this or is it standard to do the searches asap.
Thanks

 

[astroboy]

Guess I'd want searches done asap, once finance is approved the contract usually goes unconditional. You probably don't want any surprises then.
Plus the legal guys have done a bit of legwork by then, so they expect to get paid for their time.

astroboy

 

[geoffw]

If searches went ahead before exchange, I'd be quite suspicious. It's only after exchange (and long before settlement) that the contract goes unconditional (well, almost).

I would not have thought that searches were conducted before exchange unless you had instructed otherwise.

 

[astroboy]

I think rules and terminology differ from state to state, isn't 'exchange' only when your offer is accepted by the vendor ? In this case I wouldn't expect searches to be done before exchange.
However in QLD you only have 30 days to settle from when your offer is accepted. Within that 30 days you normally have 14 days to do buildng, pest and have finance approved. Once this happens the contact goes unconditional, and there is another 14 or so days before settlement. I would want those searches done before the contract goes unconditional.
C'mon their must be some QLDers here with a better legal understanding than myself.
Asy Kev ?

ab

 

[NigelW]

Originally posted by astroboy

However in QLD you only have 30 days to settle from when your offer is accepted. Within that 30 days you normally have 14 days to do buildng, pest and have finance approved. Once this happens the contact goes unconditional, and there is another 14 or so days before settlement. I would want those searches done before the contract goes unconditional.
C'mon their must be some QLDers here with a better legal understanding than myself.
Asy Kev ?

ab

Not correct. You have as much time to settle as you set out in the contract. For example, if the contract says settlement is 42 days from the date of contract then you have 42 days...

Qld is a drop dead system in the sense that if you can't settle on the settlement date then you're in breach of the contract and the vendor can terminate and keep the deposit and sue you for any loss they suffer (ie if they subsequently sell the property for less than you would have bought it for...)

Cheers
N.

 

[astroboy]

Originally posted by NigelW
Not correct. You have as much time to settle as you set out in the contract. For example, if the contract says settlement is 42 days from the date of contract then you have 42 days...N.

Ok yes I guess, but the standard period is 30 days, I have a contact in front of me that I signed on the 6/8 and the settlement date is 9/9, finance to be approved by 23/8
ab

 

[pantotango]

Hi all. Thanks for the replys and yes I guess thats correct . I must have been having a blond moment to think that they should have waited.Like you stated by then its unconditional. Big duh to me.
We have another one going now so fingers crossed that the finance will go through and no more dramas.

 

[phm]

Hi there.

One search that is done, before the property has gone unconditional is a titles search. This checks that the vendor on the contract really does own the property.

Pretty important I figure.