How unconditional is a contract for unconditional settlement? Once it is signed can I feel safe to spend money on improvements?
I have heard of people buying on a 12 month unconditional settlement and adding substantial value in the 12 months prior to settlement. Then when time for settlement comes, the value is higher that the contract price.
I like the idea but would be nervous about putting in the time and money only to find that the vendor can get out of selling before the settlement goes through.
Would the bank lend money for the improvements during the 12 month period before settlement?
Cheers
SonjaThe standard contract in NSW requires permission from the Vendor to carry out improvements. The Vendor is also taking a risk if permission is given if the Purchaser cannot settle, risks of poor quality improvements, incomplete work etc. If the improvements are cosmetic eg painting, tidying up and you can do most of the work yourself the risk to both Vendor and Purchaser is reduced. If you want to borrow from the bank what, if anything, were you proposing to use as security? Until settlement the property is not yours to mortgage.
crj
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