Hi,
I purchased a property (owner, not investment) some years ago overseas and started renovations prior to settlement with the cavet "occupation under licence" in the contract. this meant that I could enter and comence work on the property prior to settlement on the priviso that if the property failed to settle I would forgo any renovation expense I had incured and all improvements would remain the property of the vendor. IF the sale fell through the vendor had the right to seek valuation from a mutually approved surveyor and if damage to the value of the proeprty had been sustained by my renovation work I would make good the repair work (again at my cost) to the satisfaction of the surveyor. My 'protection' was that if the property increased in value during this time the vendor could not increase the price. whilst this seems skewed in favour of the vendor it worked in my favour as I paid rent to the vendor for the time I was renovating meaning that I could start earlier and be finished soon after settlement. the renovations made a huge increase in value to the property and although I admit the market was rising, I sold the property 2 years later for approx 85% increase in value.
As far as costs go – you want to get in early, you have to pay. I had my solicitor prepare the contract so I could controle what went into it – any amendements they wanted to make to the contract were at their expense. If you want ot change the contract you need to be prepared to pay for it – this is not about protecting the vendor, this is about giving you the opportunity to access the property sooner. otherwise wait until settlement. if you have a clear picture of what needs to be done you can maxmise the settlement time by planning your renovation, buying materials etc and being fully ready to commence work on day 1.
If the discount you are looking at is 3K then look at how much the contract will cost to prepare both in cost and running back and forth. You may decide to look at an expediatied settlement in exchange for the $3K – I have done this in the past "you want an additional $3K? then settlement needs to be 4 weeks not 6" etc – this too has worked for me with no additonal cost in solictors fees.
Just some thoughts….
(this could take a little longer than I would like). Richard, I will make contact with you privately later in the week to discuss futher if you have time.
(this could take a little longer than I would like). Richard, I will make contact with you privately later in the week to discuss futher if you have time.
– I am jealous!!!!!!
