Signing a contract

[WebBoard]

From: Gunna Doit


Hi all.
As it's been over 10 years since signing a house contract, I would appreciate some advice on what to expect of a modern day contract. I don't want to get to signing stage and find out there's stuff I should have known already.
I also understand that you sign "subject to purchaser's finance" and "subject to a building inspection" but I have a question regarding the wording for the bldg insp. Does it mean that if you don't like what the bldg insp shows up, you can pull out with no penalties, or how does it work? And if the insp shows certain problems, and the vendor says that they will fix it, where do you stand then? Do you let them fix it and get another insp or what do you do apart from negotiating a lower price? (I believe that you can negotiate a lower price at this stage, can't you?)
As always, looking forward to the advice of "the wise ones."
gunna

 

[DaleGG]

Reply: 1
From: Dale Gatherum-Goss


Hi Gunna

I would ask a real estate agent for a blank contract so that you can familiarise yourself with one. Good agents should have no problem with this as it means to them that you are getting serious, and, the likelihood of a sale will improve.

The building inspection clause allows you to withdraw from the contract and get your full deposit back if you are not satisfied with the condition of the house as shown by the report.

Alternatively, you could negotiate the price again if the report shows problems but nothing too bad. . . I know of many situations where the report has cost a few hundred dollars and saved many thousands of dollars as a result.

Good luck and have fun

Dale

 

[Glenn]

Reply: 2
From: Glenn Mott


Hi Gunna,

It might also be wise to speak with a conveyancer. They might be able to give you ideas on what things can help/hinder a transfer once both parties have settled on price. They might also be able to tell you in general terms how much properties are discounted from their listing price to get a sale and special conditions included

Glenn

 

[steve]

Reply: 1.1
From: Steve Mcleod


Hi Gunna,
Contract should possibly be signed 'subject to finance satisfactory to the purchaser,so if you can't get finance(for any reason),vendor cant turn around and say, I'll give you vendor finance at 12%.cheers

steve

 

[Mike]

Reply: 2.1
From: Mike .


Hi Gunna,

Some of these links may be useful:

http://www.legalmart.com.au/conveyancing/info/nsw/more_info.asp?affiliate=peterj®ion=Queensland®iondesc=

http://www.reba.wa.gov.au/publications/sale_by_offer.html

http://www.homeseller.com.au/legal.htm

http://www.loan.echoice.com.au/pages/h_nsw_offersign.html

http://www.patersons.com.au/pdf/MTA%20Special%20Conditions.pdf
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Regards, Mike

 

[Jacque]

Reply: 2.1.1
From: J Parker


Hi Gunna,

Building inspections can turn up some nasties, as I recently discovered on an old house I negotiated on. Got the building and pest reports done to find some structural faults that weren't evident upon looking at the house. Offered vendor $3K less than what we agreed on then the agent sold it to another buyer who was willing to pay my original price. It didn't worry me, as I had set my limit and I know there will be others. Better to lose a few hundred dollars than to be stuck with problems that cost big bucks to fix.
Good luck with your buys!
Cheers, Jacque

 

[WebBoard]

Reply: 3
From: Gunna Doit


Hi Everyone
I would like to thank you all for your reply to my question.
I certainly appreciate your advice.
Regards,
gunna