All Topics / General Property / what are the steps?

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  • Profile photo of ansonlauansonlau
    Participant
    @ansonlau
    Join Date: 2003
    Post Count: 15
    November 3, 2003 - 12:49 pm

    Hi All,

    I just had an offer accepted on a property prior to auction (today is Monday). The agent said the vendor will accept the offer if we can exchange contracts by this friday, otherwise the vendor will take it to auction.

    This is my first property transaction. Can someone please tell me what are the steps I need to take?

    Thanks all!

    ansonlau

    Profile photo of westanwestan
    Member
    @westan
    Join Date: 2002
    Post Count: 1,950
    November 3, 2003 - 2:09 pm

    hi ansonlau

    you need to do the following hopefully you would have done some of these

    1.checked the property out structurally to make sure it is OK. maybe a builders report.
    2. check you have financial approval if you are getting a loan. it looks like the agent is asking for an unconditional offer this means you cannot get out of it. unlike an offer subject to finance which you can. the seller would insist on this otherwise you may back out and he has cancelled the auction thinking you will buy it.
    3. do your due diligence in regard to rental return, check demand by calling other property managers asking about rental return and demand. you do this to make sure your figures are correct.
    4. you need to exchange contract. this means you and the seller both must sign the papers by friday creating a legal agreement.
    hope that helps
    westan

    Profile photo of ansonlauansonlau
    Participant
    @ansonlau
    Join Date: 2003
    Post Count: 15
    November 4, 2003 - 1:15 am

    thanks westan. is it correct for me to do the following:

    1. ask the agent to send/fax me a copy of the contract asap.

    2. have my solicitor look over the contract and make any changes to it (eg. lower deposit), subject to building inspection, etc.

    3. send the contract back to the agent, and get a builder to do a building inspection.

    4. sign and exchange contracts.

    ?

    quote:

    check you have financial approval if you are getting a loan. it looks like the agent is asking for an unconditional offer this means you cannot get out of it. unlike an offer subject to finance which you can. the seller would insist on this otherwise you may back out and he has cancelled the auction thinking you will buy it.

    I havn’t got any pre-approval yet. I was planning to get the contract signed and then go to arrange finance. I’m buying this with a JV partner and even if I could not obtain finance she would have enough money/equity to settle it. My question is, is it too late now to put in the contract “subject to purchaser obtaining suitable finance”? Secondly should I always try to get a pre-approval? Since I don’t have a track record wouldn’t the banks want to see the contract before giving you any real approval?

    Thanks.

    Profile photo of westanwestan
    Member
    @westan
    Join Date: 2002
    Post Count: 1,950
    November 4, 2003 - 2:00 am

    hi

    usually you should put the conditions in with the offer. i’d ring the agent and talk about it.
    it sounds like your partner is fine with the cash but perhaps check with them to avoid any unseen problem.
    it’s good to get preapproval because then you can make the offer unconditional which carries a bit more weight. all you need to do it run the senario through your prefered finance suppier.
    westan

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