Hi There,
I have faxed and signed a contract and sent it back to agent. The contract was signed 1 1/2 days ago and did not have the vendor signature. I would like to pull out and have the finance and building inspection clause in place however I have ben told because I havent seen the contract signed by the vendor I can terminate the contracy by sending a letter and not have to pay any fees?Does anyone no if I still have to pay fees as I have not seen the contract signed by the vendor nor have I paid my deposit?
Thanks for your help
KA010 | Raw Profits Pty Ltd
https://lawseo.com.au
Phone Mehi,
do you wish to pull out of deal altogether…. or to simply add finance & building clauses??
michael
use the cooling off period to pull out! needs to be in writing and istructions for cooling off are in the contract
Which State are you referring to.
If it is Qld never use the "Cooling Off" period to terminate the Contract.
Richard Taylor | Australia's leading private lender
Which State are you referring to.
If it is Qld never use the "Cooling Off" period to terminate the Contract.
Richard Taylor | Australia's leading private lender
yes, never use the cooling off period if you can….but if they haven't responded in some way that the vendor has agreed in writing to your "offer" I believe there isn't a contract yet anyway…. so terminate your offer in writing asap & you should be ok
Hi all,
Iam in QLD. No I already have buliding and finance in contract. I understand that because my solicitor or myself have not seen a signed contrac from the Vendor and I have not paid my deposit that there is no binding contract?!
Cheers Mat
KA010 | Raw Profits Pty Ltd
https://lawseo.com.au
Phone Mehi Mat,
if you have a finance clause then you have no problem anyway… but as yet I believe you don't
have a contract so simply fax the agent notifying them that you wish to terminate your offer… if
they do say the vendor has already signed & try to keep pushing you into it which I doubt they would …
do not enforce your cooling off period to extricate yourself from the contract, simply get your broker to
write a letter stating your finance has not been approved & you shall have no repercussions…by the way why are you so keen to not buy something you were
at one time keen to buy??Michael
Hi Michael,
Its funny when you dont know what your doing we will do anything, when we get expert advice which I should have done in the first place we make the right decisions the first time round.
There is tenant who will be residing in the property for 10 months and because of this I will have to pay $8450 in stamp duty where if he had only been there for 5 months and 29 days I would pay no stamp duty. I also did not read the disclosure statement of the body corporate, there is no $$ in the admin and sinking fund as he use to own the 6 units and has only just created a body corporate a couple of months ago.
I have only just got off the phone from the real estate agent after sending him an email which read
"Dear JXYZ, I can confirm that I have not recieved the sale of the signed contract for Unit XYZ, and therefore are not legally bound by the contract. I hereby withdrawal my offer. Kind Regards"His first response was we will keep our eye out for any property for you. Its funny he pushed and pushed and explained to me that I should pay the deposit of $500 which was due today by 5pm and that I should not pull out of the contract until after 5 days and that I should pull out subject to finance. Goes to show how badly he wanted me in the sale of the contract! Lets just say I have learnt alot and will alsways ensure I send contarct firstly to a solicitor.
Cheers Mat
KA010 | Raw Profits Pty Ltd
https://lawseo.com.au
Phone Me"that I should not pull out of the contract until after 5 days and that I should pull out subject to finance."
well, I hope you do better next time… & by the way the agent should know
that you are not pulling out of a contract, as legally, it is not yet
a contract…. merely an offer… maybe find another agent??best wishes
Yes another agent, he is already trying to chase me for a better offer
KA010 | Raw Profits Pty Ltd
https://lawseo.com.au
Phone MeIt looks like this matter is sorted out now, but my understanding of the Qld finance clause is that the buyer "must take all reasonable steps to obtain finance approval" I suppose what is "reasonable" is open for interpretation?
Michael I don't think you could ask a finance broker to write a letter saying that your finance has not been approved without taking all the necessary steps.
Qlds007 wrote:Which State are you referring to.If it is Qld never use the "Cooling Off" period to terminate the Contract.
Why Not?
KA010 wrote:There is tenant who will be residing in the property for 10 months and because of this I will have to pay $8450 in stamp duty where if he had only been there for 5 months and 29 days I would pay no stamp duty. I also did not read the disclosure statement of the body corporate, there is no $$ in the admin and sinking fund as he use to own the 6 units and has only just created a body corporate a couple of months ago.Is it possible that you could turn this deal around by getting the current tenant to negotiate on a new 5 month lease at a lesser rent? Or could you push the settlement date back further to make their vacancy fall within a workable time frame such that you can avoid stamp duty? I don't know under what terms stamp duty applies so this might not make a difference. Are you applying under first home owners grant, which i guess means you'd have to occupy within 6 months?
It sounds like you've done some work getting this far and it would be a shame if there's no way to resurrect the deal.
Hi Else,
Yes the thought of lowering the rent was an option however he is already on a great deal, its been one of those property's for sale whereby becuase the rent is so low people interested in buyer the property seem to not want to put in an offer. (the tenancy agreement is for 12 months 2 weeks ago) Yes delaying the settlement date could be an option, I would need atleast a 6 month settlement date as I need to reside in the property for 6 months or longer and the tenant must not occupy the property or it is regarded as an investment, which in turn rules me out for concession on stamp duty, which as a first home buyer is nil, zero zip $$'s Unfortunately because the tenant is on a great deal the tenant does not want to budge.
KA010 | Raw Profits Pty Ltd
https://lawseo.com.au
Phone MeWell, you could try explaining the situation to the tenant and see if you can do something for them in exchange for renegotiation to a shorter lease. If you offered to knock $30 per week off the rent for the 5 months that'll cost you around $650, and they get $120 of their bond back immediately (since you can hold max 4 weeks rent as bond – in nsw at least). You could offer to let them break lease on a weeks notice any time in that lease period without penalty, and contribute some amount of money towards moving expenses. If it costs you $1000 to get them out would the deal still be worth it? Of course you don't want to throw money out of a deal, but if it's still worthwhile even so… I'm sure someone more experienced could give you more options than i can think of.
Is it possible to terminate a lease if you buy a property to reside in yourself?
There's still the empty sink fund matter, of course. I don't think there's anything you can do with that other than take it or leave it.
KA010, The cooling of period does not begin until either you or your solicitor receives a copy of the contract. As you state that you have not seen one, then you only have an offer and you can rescind your offer by email or fax to the agent advising such.
On the issue of Tenancy on Purchase, it is my understanding that in Qld an Owner occupier must occupy the property at any time within the first 12 months (it used to be 6 months) in order to receive the concessional rebates.
On the issue of the sinking fund. It sounds like the vendor owned all units and has decided to sell them individually. As an inline owner there is no responsibility for him to have a sinking fund and provided that the property has been maintained in a good manner (Building Inspection should clarify) I don't see this as a stumbling block.
Jon
Xenia
You will loose 0.25% of the purchase price.
Richard Taylor | Australia's leading private lender
We actually had someone terminate a contract under the cooling off period several years ago on a property we had for sale, so the .25% was deducted from the buyers deposit. However we only got half of that as the RE agent kept the other half !!
are agent's allowed to keep a portion of the .25% legally…. I don't know….
they are contracted to sell the property & are payable on settlement usually… if the property does not settle
can they claim a payment.??.. let me know… or should this be a separate topic???michael
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