We have made an offer for a house as our IP. The vendor accepted it but after delivering the contract to our conveyancer requests that we give up our right to the 5 days cooling off period. We’ve inspected the property ourselves twice and to us it looks as in a good nick. We would have pest and building control done anyway but that rather unusual request really puts us off, we think that the vendor is hiding something and we don’t want to spend all that money for nothing (inspections). There is another party offering the same price and it seems that we ( the buyers ) don’t know what to do next and nobody is game enough to make the first move. This situation has been dragging on for about 10 days now. Is there anything else besides the pest and building control reports that can be wrong? Why such request?!!! BTW, we have our finance pre approved.[confused2][worried]
Maybe he’s not hiding anything.
Maybe he just wants an unconditional sale, he does want you to pull out in 5 days and the other potential buyer to have disapeared.
Do you checks, get your solicitor to check the contact and when you are in the position make an unconditonal offer – at a lower price.
The vendor wants his ceratinty of sale and you want a bonus for that
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.auThe Cooling off period is unrelated to the Pest & Building and Finance conditions. Your can waive the cooling off period but still have the P&B and Finance approval conditions.
Have you had the place valued.
If the contract has Pest & Building and Finance conditions, and they know that these 2 conditions will be met, but you have offered a price that they know it above market value. Then maybe they just want to lock you into the price and as Michael said have the sale being effectively unconditional .
You can agree to waive the Cooling off period , but ensure the other conditions are there, including a a condition of being “subject to valuation”.
The cooling off period is a “Get out of the contract for any reason at all” condition. The other are specific, generally accepted conditions.
Mal
Getting out of your comfort zone, can help you become comfortable
Kerambi – This just happened to us. Today we had the valuer in value our PPoR (for equity/loan reasons) and we have had the building inspection done (but the report is not in) and we have commenced a strata search. Today the vendor's solicitor wants us to waive the 5 day cooling off period as well.
This request for waiver, makes us wonder (like you) what it is they don't want us to know about until it is too late. If we weren't serious we wouldn't have already starting forking out for the afore mentioned expenses. There is no way we are going to exchange contracts and pay the deposit until finance and searches are 'in the bag'. We feel we our offer meets the market and is not more than the property is worth. We may provide a deposit in good faith knowing that we won't lose it.
Did you still end up going ahead with the deal Kerambi?
Does anyone else have any comments or experience with with this?There are a number of reasons a vendor may request you to waive cooling off rights
* There is something wrong with the property that they are aware of.
* They may want to move on another property and need your commitment before they can commit elsewhere.
* They have been stung by someone else who has pulled out and don't want to go through it again.Have you ever asked anyone to waive their 5 day cooling off period emptypockets?
I am happy to waive once we have loan approval and the building inspection and searches are found to be ok – but not before.Hi
This is what I would do.
Have a chat to the vendor on why he / she wants the cooling off period waived. There could be a number of reasons as mentioned, and instead of speculating, just ask. Be open on your side and inform that you are still interest, and will include Pest , Building and Finance clauses.
The vendor could be honest and just say that there is nothing wrong with the property and has other use for the money; then there would be no worries on that. However, if there is some degree of hesitation or you sense something is amiss, throw in the valuation clause as well for good measure.
Regards
Daniel Lee
Our conveyancer has informed us that it is standard practice to waive the cooling off period. We decided to just wait until all the pest, building and strata reports and loan approval came through before signing the contract. They have not taken the property off the market which I thinks sucks and encourages gazumping (doesn't seem very ethical to me).
Waiving the cooling off period but leaving the contract as subject to finance will just offer you another out…and the vendor will proabably see it as that .
If you have finance in place but have not done building and pest inspections make it subject to satisfactory building and pest inspections but without cooling off and without subject to finance clause if you believe there is another purchaser about to offer the same price.
Or offer $1000 more subject to cooling off if you really believe there is another purchaser and wish to exclude him/her but have time to consider your position.
Ajax
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