vendors just accepeted - next steps (am I rushing things?)

[JTB]

Hi all,

I've just been told by a REA that my offer on a property has been accepeted and that he would like my solicitors' details to push it along.

I don't see any problem with this, however I was advised by friends that I should make the offer and if it is accepeted then get the strata report and solicitor to save on fees in the event that the offer is not accepeted. So I currently don't have a solicitor.

Because of the above is it possible to place a clause which subjects the contract to the results of the strata report (IE I don't want to be sign and then find out that there is a $4000 special levey)? I want to make sure I can exchange before the 30th of Sept so I can gaing the max FHOG boost.

And should I tell the REA that I am in the process of getting a solicitor or just try and buy my time? I don't want the REA to think that I am not serious and go back to previous offers (as he keeps telling me has had).

thanks in advance all.

 

[Propertunity]

I've just been told by a REA that my offer on a property has been accepeted and that he would like my solicitors' details to push it along.

Pretty standard practice.

So I currently don't have a solicitor.

Get one - quick!

Because of the above is it possible to place a clause which subjects the contract to the results of the strata report (IE I don't want to be sign and then find out that there is a $4000 special levey)? I want to make sure I can exchange before the 30th of Sept so I can gaing the max FHOG boost.

The more time you spend stuffing around the more you come across as a tyre-kicker FHBer. If I was the REA I'd be making some calls The cooling off period was so that you as a purchaser had time to do a strata search and finance approval. In this market you need to take the property off the market by signing the contract. If the strata report turns out to be a dud - then pull out.

And should I tell the REA that I am in the process of getting a solicitor or just try and buy my time?

That won't wash in this market - get on with it, the clock is ticking.

 

[JTB]

Pretty standard practice.


Get one - quick!

The more time you spend stuffing around the more you come across as a tyre-kicker FHBer. If I was the REA I'd be making some calls The cooling off period was so that you as a purchaser had time to do a strata search and finance approval. In this market you need to take the property off the market by signing the contract. If the strata report turns out to be a dud - then pull out.


That won't wash in this market - get on with it, the clock is ticking.

Thanks for your prompt and honest repsonse Propertunity. I've already got a details of a solicitor I am going to call first thing tomorrow.

In regards to using the cooling off period to pull out, my concern was that in doing so I would have to forgo a % of the agreed price.

slightly OT - is it generally standard practise to have a solictor oversee the contract prior to making an offer?

 

[Propertunity]

Thanks for your prompt and honest repsonse Propertunity.

You're welcome. The last half dozen or so properties that we've purchased for clients were only purchased becuase we acted very quickly and even then we nearly got beaten to the line. You have left your run very late with only 7 days until 30 Sept for the max grant / boost.

I've already got a details of a solicitor I am going to call first thing tomorrow.

Good

In regards to using the cooling off period to pull out, my concern was that in doing so I would have to forgo a % of the agreed price.

That is a common concern amongst FHBs - and the reason they miss out on a purchase to people like me While you dilly dally over the possibility of losing 1,000 of your hard earned dollars someone else is writing a cheque and signing the contract.

slightly OT - is it generally standard practise to have a solictor oversee the contract prior to making an offer?

In an ideal world, yes. You'd get a copy of the contract over to your solicitor and he'd read it and call you in to discuss it. The you'd negotiate the clauses out of it that you did not want and add in some that you did. Then you'd order a pest & building report and a strata report. Then you'd apply for finance and a valuer would go out there. Then you'd wait for the post to arrive with a copy of your formal finance approval. THEN you'd sign the contract.
This is exactly how things work in a buyer's market / slump.

BUT I have news for you.........this is a seller's market and if you try that stunt then you will miss out - no ifs and buts about it. This is the time to slap some money down and sign on the dotted line. Then push hard to get things done in the time allotted - or no property for JTB

Cheers, Alan

 

[jrc]

You need to exchange on or before 30th for the additioanl FHOG. Start hurrying.

 

[JTB]

Things are moving along now, my solicitor has the contract and is in contact with the REA.

Alan, I am in 100% agreement with you in regards to FHBs missing out because they don't want to lose the $1000, as that is exactly the reason why it's taken me almost 1.5 years (on and off) to find a property I want and have it accepeted.

My solicitor has told me that I should not sign till I get the strata back (expected Friday - I know it's my fault for not getting on it faster) but I think I'll take your advice Alan, and sign the contract once he has sorted it out to ensure I get the property.

As far as I am concerned, it's just a waiting game now. I'm getting quite antsy..

Thanks again for your responses guys. While it can't give me those 48 hours I wasted back, it does help me keep my head straight.

 

[MichaelW]

JTB,

Its a contract! Just get your solicitor to add a clause something like:

"Subject to acceptable strata report"

then sign it and exchange it.

That way, if the strata report comes back and you're not happy then you can pull out at no expense to yourself as it was a condition of the contract that you could do so.

The only risk is the vendor might not want to exchange with that clause put in, but you can get your solicitor to sell it as a low probability event that you just want to cover your but against a major unforseen outcome.

Maybe test with them that they're happy to have that clause added first so you can exchange now? If they're not then its up to you whether you want to roll the dice on the $1K in the 5 day cooling off period or not. If you've done your DD then I'd exchange.

Cheers,
Michael

 

[Skuri]

Yes you want to get into the property market, but don't be rushed! people are crazy - that's what hyper inflates the market to be a 'seller's market' in the first place!

I would (in future) get a solicitor/conveyancer that will do unlimited/numerous pre-purchase contract/section 32 checks for you so you can get documents and send them through straight away. Mine does a one day turnaround.

And yes, that may even risk you misisng out but better that than being out of pocket because you were in such a mad rush you overlooked something dodgy. Besides, people are stressing you need to cash in on FHOG but then saying...oh what's $1000 fee? It's a stupid mentality.

Not sure what state in Australia you're in but you shouldn't even be able to firm up an offer without documents being available!

Don't be rushed by hungry REA's etc. Be quick and decisive but don't get into something you're not comfortable in.