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Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of allindanallindan
    Participant
    @allindan
    Join Date: 2003
    Post Count: 8
    February 25, 2005 - 6:17 am

    Clause 3.1 of the terms and conditions of the REIQ contract (QLD only) reads:-

    ‘ This contract is conditional on the Buyer obtaining approval of a loan for the Finance Amount from the Financier by the Finance Date on terms satisfactory to the Buyer. The Buyer must take all reasonable steps to obtain approval. ‘

    You must take care to read all terms of a contract prior to signing anything and preferably obtain independent legal advice as well. You do have the right to decline a finance offer if you do not like the terms offered. Some agents though will complete the finance clause as follows:-

    Finance Amount: Sufficient To Complete Purchase
    Financier: Any Bank Or Building Society

    If your contract is filled in as above and the vendors do not believe you have acted ‘reasonably’ in trying to obtain finance you could be in a lot of trouble. I had a client recently who signed a contract, spoke to a Broker who shot down all their dreams of a 97% LVR loan and they just walked away thinking they could call the agent to get their deposit back without even lodging an application for the loan. Things like that can get messy if you’re not careful.

    Bottom line here is, pre-approvals are basically good but no indication that anyone will actually lend you any money… do your homework and always keep your solicitor informed of your progress.

    Cheers

    Profile photo of allindanallindan
    Participant
    @allindan
    Join Date: 2003
    Post Count: 8
    February 29, 2004 - 12:47 am

    Hi Guys,
    In QLD, 95% of the time the Real Estate Agent draws up the contract to have people sign. While some of them are good, there are far too many contracts being stuffed up from the outset. My strongest possible recommendation in purchasing property is to have your solicitor review the contract before signing anything. Find a good solicitor with a flat fee price (eg: drive away no more to pay [:)] )and ask for their help. If your solicitor keeps adding to your bill for things like reviewing the contract… find another solicitor.

    A lot of the properties investors like ourselves are looking at are pre-loved properties with good returns. One clause that is very usefull when buying a property with obvious extensions like garden sheds, add on drive ways, kids cubby houses etc etc is this:-
    ‘This contract is subject to and conditional upon Final Certificates having issued from the local council for all improvements on the property’ Just to make sure everything is council approved. Could save you heaps of money down the road if you are considering selling.

    Cheers
    Shaun

    Profile photo of allindanallindan
    Participant
    @allindan
    Join Date: 2003
    Post Count: 8
    February 29, 2004 - 12:33 am

    ctl,
    The simple answer is yes, if the other parties solicitor is worth their pay they will require confirmation. I work as a conveyancing paralegal in Nth Qld and I am forever faxing letters of finance decline to end a contract and we must include the letter from our clients financier to prove that they have actually been knocked back. If you do pull out for no good reason, a) You would forfeit your deposit b) The seller would put the property back on the market to be sold as cheaply and quickly as possible and then sue you for the difference in purchase price. If you really do need to pull out of a contract, your first call should be directly to your solicitor to obtain legal advice.

    Shaun

    Profile photo of allindanallindan
    Participant
    @allindan
    Join Date: 2003
    Post Count: 8
    February 14, 2004 - 7:47 am

    I work as a conveyancing paralegal and we just settled on a property for our clients who had a First Mortgage with National Australia Bank and a Second Mortgage with Credit Union Australia.

    Basically, if you want something, you just have to ask. Even if you are told No!, you will learn something from the experience.

    Cheers
    Shaun[:)]

    Profile photo of allindanallindan
    Participant
    @allindan
    Join Date: 2003
    Post Count: 8
    September 24, 2003 - 3:16 am

    ‘It’s Easy To Be A Property Millionaire’ by Craig Turnbull isn’t too bad. He does push -ve gearing a little but also advocates purchaseing +ve geared properties to balance things out. He followed it up with ‘It’s Easy To Be A Property Multi-Millionaire’ which I haven’t had a chance to read yet. I think I read about 9 books on property investing before I got to Steve’s, but I have definitely learnt at least a little something from all of them. It is easier to decide what is right for you personally if you have all the information, even if you now think it is wrong.

    Cheers

    Profile photo of allindanallindan
    Participant
    @allindan
    Join Date: 2003
    Post Count: 8
    September 17, 2003 - 5:23 am

    BC,
    Go with what your Solicitor tells you. I only deal with QLD contracts and it is very possible there are a different set of rules in NSW.

    Cheers
    SHAUN

    Profile photo of allindanallindan
    Participant
    @allindan
    Join Date: 2003
    Post Count: 8
    September 17, 2003 - 3:48 am

    Hi all,
    I send this to clients every day:- “As from the date of the contract you are in law, the owner of the property. The contract stipulates that from the date of signing, the risk of the house being damaged or destroyed lies with you. Accordingly, if you have not already done so, please urgently make arrangements to have the property insured against the usual risks.” This is from the REIQ contract anyway. (QLD) Houses only though, if there is a Body Corporate for a unit etc they will have insurance already.

    Cheers [:)]
    SHAUN

    Profile photo of allindanallindan
    Participant
    @allindan
    Join Date: 2003
    Post Count: 8
    September 13, 2003 - 1:36 am

    Hello Everyone,

    I am a Conveyancing Paralegal in Townsville. I spend all day long doing the paperwork involved in buying and selling properties. And I mean ‘all day long’ too, the Townsville/Thuringowa market has gone nuts over the last 4 to 5 months.

    Great site, great people! I have really enjoyed reading through all these threads.

    Shaun

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