在澳大利亚 Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int
Just a bit confused about the sale process would appreciate any feedback. I have made an offer on a property in Qld which has not been put to the vendor at this stage, however the RE Agent wants me to sign a contract with the offer. How long does the vendor have to respond, couldn't they sit on the offer for a while therefore stopping me from making offers on other properties? is this the usual procedure?
You make sure that your offer only lasts 1-3 business days from the date of signature. That way they can't keep you hanging for very long....
What worries me is the suggestion for you too "to sign a contract with the offer." I'm not 100% sure of the Qld system but in NSW the Agent could get the other party to sign and date the Contract and 5 business days later, i.e. after the cooling off period, you would be committed to the purchase. Possibly without having had sufficient time to do your due diligence.
I would only sign the Contract when I'm ready.
In Vic exact wording (using a REIV form) is "This offer will lapse unless accepted within ____ clear business days (3 days if non specified).
Every offer I put down I've had to sign a contract. Some REAs use the REIV form, some don't, but yeah as Lofty suggested...do your homework prior to signing anything.
Just remember to include your Special Conditions/Subject To (if any) with appropriate dates (speak with your legal + finance for suggestions).
You can pull out at any time up until acceptance has been conveyed to you. If you sign and they accept your offer then the agent will advise you right away to make it legally binding. They can take as long as they like to accept but if you haven't signed then it won't be good for them because you can pull out any time. So the agent is just doing their duty to the client to ensure the sale goes ahead. You can still rescind afterwards in the cooling off period but you lose 0.25% of the contract price from the deposit. Hope this helps.
Agents frequently get messed around by non genuine buyers. This just confirms the validity of the offer, no biggie.
beanz said: ↑
Just a bit confused about the sale process would appreciate any feedback. I have made an offer on a property in Qld which has not been put to the vendor at this stage, however the RE Agent wants me to sign a contract with the offer. How long does the vendor have to respond, couldn't they sit on the offer for a while therefore stopping me from making offers on other properties? is this the usual procedure?Click to expand...You can give a timeframe if you wish. The usual procedure is 24hours after the offer is made, as its fair practice to inform other buyer there is a offer (not telling them the price).
It doesn't stop you making other offers.
Yes, I'd make sure you're 100% about the property before signing a contract.
Yes, some agents will try to sit on an offer if they believe another offer could be shaping up in the immediate future. I once had an agent tell me that she routinely sits on all offers for 2 weeks to see if she can illicit additional offers and create competition between multiple buyers. However, some agents need to use time to convince the vendors to accept your offer. Asking the right questions will help to understand if any delays are working in your favour or likely to work against you.
I'd also get some legal advice before signing anything. If it's a legitimate contract for the purchase of residential land in Queensland, it should have a Form 30c attached to it, which will warn you about seeking legal advice before entering into a contract. I'd highly recommend you do this. Many conveyancing folk never charge for reviewing a simple REIQ contract and generating conditions for you that have been legally reviewed.
Here are some things you might consider as part of a buying process:
1. Consider what you need in a contract
Talk to your finance provider and ask them how many days they need to process your approval. Check with your building and pest inspector to see when they can get through the property. Add at least 7 days to the highest of these two (will most likely be the finance) and that would probably be your earliest settlement date. In the end, you should check these dates with your conveyancing team.
Fortunately, pest folk are pretty available at the moment, due to the nature of the market, but it pays to check. Then, consider what else you might think needs clarification in the contract, especially in the 'inclusions' and 'exclusions' area.
For example, you might have 14 days for a pest inspection, 21 days for finance and 30 days until settlement (this is probably one of the most common combinations).
2. Talk to your conveyancing team and tell them what you think you need in a contract - they'll recommend whether you need any special conditions (things not covered in the generic REIQ contract). At this point, talk to them about how long you'd like to give the vendors to sign the contract.
I usually ask the agent how long the vendors should take to respond, so my request is reasonable - sometimes there can be reasons why they may take longer than 24 hours to reply... they could be overseas, deceased estate with 5 beneficiaries to sign and can be a logistical nightmare, etc. However, I'd never let it go longer than 3 business days.
3. Get the agent to prepare the contract. **DO NOT SIGN IT THEN**
4. Get your conveyancing solicitor to review the contract.
5. If all is okay, sign the contract which will then become your 'offer'
Property contracts must be in writing, so anything else is just banter.
Tip with your deposit:
I never pay a deposit on signing. Too much mucking around and if it doesn't go through, you have to go through the process of getting your money back. I recommend not paying an initial deposit.
Instead, I'd recommend making one deposit, which is payable within 3 business days after the contract date. That way, you're only paying a deposit when both parties agree that it's going ahead. I've never had anyone argue with this and it just makes life easier for everyone. Remember, if you miss a deposit payment, you're in breach of your own contract. Best to keep it simple.
Another point: Some RE agencies get you to sign an 'Offer to Purchase' document. It's usually a 1-2 page document and summarises all the important points to be included in your contract, but it won't actually be the contract itself. It's used to express your interest and is then usually replaced by the full contract when everyone sees eye-to-eye. I much prefer to use a genuine contract when signing, as it is more meaningful to the vendor when placed under their nose for a reply (i.e. if they sign, it's for keeps).
Good luck with your purchase.
I would suggest legal advice before signing a contract.
You should be able to make an informal and non binding offer without signing, but the vendor would not be bound either and may sell to someone else after accepting your offer and before exchanging contracts.
In Vic it's better not to get legal advice cause then you waive your cooling off rights
Aaron_C said: ↑
In Vic it's better not to get legal advice cause then you waive your cooling off rightsClick to expand...In your opinion.