在澳大利亚 I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo
I'm making an offer in Queensland and i'm trying to find out the procedure,
as I think it is somewhat different to NSW.
It's certainly different to Vic!
You need to fill out all the details of you offer on a signed standard contract. If the vendor agrees, they sign it - job done! However, if they don't agree, they'll simply cross out the bits the don't like (price, settlement time, etc), initial the changes and send it back. You initial the changes - done! If you disagree... well, I think you get the picture now.
Can end up with a very untidy contract!
Not sure about the offer side, but afterwards it's a bit different. My experience on a property was as follows:
1. $XK deposit to be paid by X date. If not paid by X date, vendor can pull out
2. $XK deposit to be paid by X date. If not paid by X date, vendor can pull out
3. 2 weeks prior to settlement I needed to have my bank send a letter confirming exact amount of finance and the address of the property had to be on the letter. If not received by X date, vendor can pull out
RedCat said: ↑
2 weeks prior to settlement I needed to have my bank send a letter confirming exact amount of finance and the address of the property had to be on the letter. If not received by X date, vendor can pull outClick to expand...I don't believe this to be the case.
My understanding is that if you have a finance clause in the contract, your have that amount of time to advise that the finance HAS NOT been approved.
Same with the pest and building clause.
In other words, if you sign a contract with ten days building, pest and finance and that ten days passes and you have not advised that any of those things has been an "issue" then the contract becomes unconditional.
(Unless things have changed recently .)
Finance applications can often take a minimum of 14 days to process. Accordingly, please contact your financier as soon as possible to arrange your finance application. Please:
• advise the outcome of your finance application prior to the Finance Date;
• send us a copy of your finance approval or rejection letter as soon as it is received.
Please note that if we do not notify the seller whether you have obtained finance approval by the finance approval date, then the seller may terminate the contract. The seller may wish to terminate the contract in this circumstance if they have a ‘back-up contract’ for a higher price. Accordingly, it is important that you provide all relevant information to your financier as soon as possible and advise them of the Finance Date.
You offer a price either verbally or on paper,
If it is accepted,you will need to sign a contract either via email,fax,or personally at the real estate.
I always only pay $1000 deposit,never any more.(Have done around 10 in the last 12 months)
Usually it is 28 days settlement,7 days for the building and pest,14 days for finance,
If you get building and pest done make sure it is by licenced building and pest suppliers.They could ask for a copy ,that is their right.
The banks will cut it fine,but if it needs to be extended,no problems,usually only by a few days anyway.
You can not get gazumped as in NSW,once the bank finance is approved,it becomes unconditional.
wylie,you are correct,it still becomes unconditional if you don't do anything.
have a peruse of the standard reiq contract here.
this has to be filled in to make a genuine offer, anything less means squat.
if this is your first offer, rather than put a stack of additional clauses (less is yes) such as
-vendor carries full responsibility and liability for condition of property until time of settlement
-right to settle early if long settlement.
- site survey
just add pest and inspection and "subject to solicitor's approval". then you can discuss with them further conditions to add, like body corporate search for units.
recommend you use 3 week finance (15 working days) as lenders have been slow. NAB were 6 days late on our last = $1800 in interest and charges, which they say they'll cover. ask your lender beforehand though.
you want to think about how a presettlement inspection is going to be carried out too.
ensure chattels and fixtures are stated clearly.
ask rea for a rates notice.
if in Brisbane city council area, check pdonline for zoning, encumbrances, easements.
phone the council as well to talk to a town planner about any future development you might want to do - split, granny flat, extend, renovate. doing any of these things can be encumbered. and a solicitor isn't qualified to interpret the searches they do.
agree you should only put $1k down initially.
if they insist on more, make the balance due on finance approval.
don't ever pull out of a contract based on the cooling off clause as you are entitled to pay 2.5% of the price.
btw, I'd recommend using a Qld solicitor for a Qld purchase.
WinstonWolfe said: ↑
btw, I'd recommend using a Qld solicitor for a Qld purchase.Click to expand...Isn't this a MUST? Our Vic soli couldn't act for us during our recent Qld purchase.
wobbycarly said: ↑
Isn't this a MUST? Our Vic soli couldn't act for us during our recent Qld purchase.Click to expand...If something goes wrong, you want someone who understands Qld property and contract law comprehensively.
The big difference between Qld and NSW is that in Qld you can pull out anytime during the pest and building inspection time if you are not happy with the report without any financial penalty and you get your initial deposit back.
I have never paid more than $100 deposit on a Qld contract and was more than a bit peeved that I had to pay 10% of the purchase price on a NSW contract after the initial cooling off period.
WinstonWolfe said: ↑
If something goes wrong, you want someone who understands Qld property and contract law comprehensively.Click to expand...Completely agree. Our Vic soli wasn't "allowed" to act for us in Qld. Is this only a Vic/Qld thing or an anywhere else/Qld thing?
wobbycarly said: ↑
Completely agree. Our Vic soli wasn't "allowed" to act for us in Qld. Is this only a Vic/Qld thing or an anywhere else/Qld thing?Click to expand...AFAIK, there's no rule preventing interstate representation, and I actually had a Byron Bay lawyer mate offer to do a Qld purchase for me in 2003, for mates rates. But a local lawyer advised of the complications and volumes of legal reading he'd have to do if the @#@$ hit the fan.
WinstonWolfe said: ↑
AFAIK, there's no rule preventing interstate representation, and I actually had a Byron Bay lawyer mate offer to do a Qld purchase for me in 2003, for mates rates. But a local lawyer advised of the complications and volumes of legal reading he'd have to do if the @#@$ hit the fan.Click to expand...That's very interesting. Twice now, when we've asked Victorian-based soli to represent (one a name off the title, the other a new purchase) they've simply refused. Nothing about the potential complications of Qld law. Ah well, we now have a trusted solicitor both in Qld and Vic.
wobbycarly said: ↑
That's very interesting. Twice now, when we've asked Victorian-based soli to represent (one a name off the title, the other a new purchase) they've simply refused. Nothing about the potential complications of Qld law. Ah well, we now have a trusted solicitor both in Qld and Vic. Click to expand...They were probably too tight to pay for the interstate phone calls (although they would have passed the cost onto you with a hefty loading, wouldn't they?).
natmarie73 said: ↑
The big difference between Qld and NSW is that in Qld you can pull out anytime during the pest and building inspection time if you are not happy with the report without any financial penalty and you get your initial deposit back.Click to expand...except that the vendor has the opportunity to rectify and the buyer must act reasonably...it is not as simple as just pulling out - it must be a genuine reason under building and pest and the vendor can seek an independent opinion etc etc etc - big minefield if you pull out for a futile reason and the vendor is clued up!!
also, I believe that a solicitor acting for a client on a Qld purchase must be registered in Queensland...a non-qld licensed solicitor/conveyancer can act interstate though in conjunction with a local office...
happy to stand corrected on that last point - but that is how it was explained to me and is backed up by the last few houses I sold to interstate purchasers.
Hi Zaligirl, not sure if the advice is a little late, however here goes.
A lot will depend, on the level of interest in the property, and also the experience of the agent handling you offer. Firstly, get a copy of the documents, and read them so as to familiarise your self as much as posible.
If there is a lot of interest, the best offer, in terms of price as well as conditions will win. Depending on the experience of the agent, paying a low deposit, may make another offer look attractive. If you dont have an attractive deposit available, you may want to consider a deposit bond.
Qld contracts have a 5 business day cooling off period, and a 0.25% fee if excercised. They also have standard building & pest, as well as finance clauses that need to be correctly triggered. I have been told that while finance is usually available in 14 days, you need to chace up your financier to get the approval in that time. If you do not get finance or do not advise the seller, the seller may terminate.
The building/pest clause need to be to your satisfaction. While the clause state you must act reasonably, it is still to your satisfaction. The seller can ask for a copy of the report, however has limited room to move, except, if you are silent by th edue date, you are considered satisfied, and then bound.
In terms of solicitors, my experience has been, if you engage a non Qld solicitor, they will the engage one to act as their agent in Qld, to do the local legwork, attend settlement etc, so it will end up a bit more expensive.
Let me know if I can be of assistance.