Need some advice please for a Victorian Sales Contract.
There’s a clause- The 3 day cooling off period does not apply if; The price of the property (including chattles) exceeeds $250 000. On my sales contract this has been crossed out by the real estate agent. Can this cluase be deleted from the contract by the agent?Thanks in advance, G7
g7, ask the REA what the go is.
If unsure, don’t sign it, take it to your solicitor and see what they reckon.[medieval]
Matt
G7,
Check this out:
Cooling-off period
If you buy a residential property less than $250,000 by private sale, you are entitled to a cooling-off period of three business days. This means that you are legally entitled to withdraw from the contract if you change your mind within the three business days.A cooling-off period does not apply if:
*
the property price is more than $250,000This is old info- please check message below for updated info.
* the property was bought at auction or within three business days before or after a scheduled auction
* the purchaser is an estate agent
* the purchaser has obtained independent advice before signing the contract
* the vendor and purchaser have previously entered into a Contract of Sale for the same property
* the property is used for industrial, commercial or farming purposes.It does seem ludicrous that the CO period is waived for properties over 250k when the median price for properties in Victoria is way higher than that.
What’s your bargaining power in this? Are you able to have a verbal offer and acceptance, and an assurance the RE/vendor won’t gazump you? If you sign this contract, with the period waived, you will be bound to the contract, and bound to the sale.
A contract is an individual matter. It is a statutory document, but can be changed by either of the parties if they so wish. If the vendor wants to sell you the property, then they will be happy to allow you to get legal advice and do your checking before you sign- it seems like it would be against their interests not to allow you this and for a genuine sale to fall through.
I wouldn’t be pressured by a RE agent to sign anything before it’s checked by your solicitor, plus you’ll pobably want to get a BPI and do the usual checking.
Perhaps the REIV can lobby whomever to get the CO period more in line with median property prices. It’s too much pressure on a buyer with this kind of rule in place.
kay henry
G7,
Actually… check this out instead of the above:
7. Cooling off
Know your rights with regard to “cooling off”. Providing you are not within one of the statutory exceptions (one such exception for example is if you purchased at an auction) you can cancel the contract within three clear business days after signing it without giving any reason for doing so. Some of the other statutory exceptions to a right to “cool off”, that is where you do not have such a right are:
* Where the land is used for industrial or commercial purposes;
* Where the land is more than 20 hectares and used primarily for farming;
* Where the land is sold within 3 clear business days of a publicly advertised auction;
* Where the purchaser has sought and received independent legal advice before signing the contract;
* There are various other exceptions pursuant to the legislation.If you do change your mind you are entitled to a refund of your deposit except for $100 or 0.2 per cent of the purchase price, whichever is the greater. Before 1 February 2004 there was a further requirement that “cooling off” rights only applied to properties under $250,000 but this is no longer the case.
http://www.liv.asn.au/public/rights/rights-Buying.html
OK- so the more up-to-date info is that the CO period DOES apply, post 1 Feb. That’s good news :o))) Seems their solicitor/RE agent is working off an old contract.
kay henry
Thanks for that Kay, I really appreciate the effort you went to for my post[biggrin] Cheers, G7
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