Hi Guys, I'm so lost at the moment have been reading around and researching but cannot get over this fact. Okay so i've narrowed my shortlist of properties that i have searched in my area of choice. Now when i want to put an offer when do i do the building/pest and valuation? Is the best time before exchange of contracts (so you have negotiating power) the question is what if you do all inspections/searches and you get gazumped then there goes a few hundred dollars. Now if you do it after contracts are exchanged and you find problems with the reports what if the vendor does not budge and want to lower price/conditions etc- then basically you lose $ again (usually the vendor would lower purchase price etc right?) okay so when is the best time to do all reports and has anyone used a clause stating if contract fulls through vendor is liable for report fees and will pay seller upon showing receipts etc. Thanks for your advice.
When we bought our house, we signed the contract subject to building / pest insepctions, and subject to finance. We got the inspections done straight after signing the contract, so if we did find anything nasty we could either re-negotiate, or if the vendor didn't want to play ball, we could have pulled out during the cooling of period.
Put the clause in the contract and be careful of the wording of the clause. "contract subject to the completion of a pest and building inspection to the buyers satisfaction" . That way they cannot argue over points of contention. Also the same with the finance. I can't remember the exact wording of the clause but is is more that "subject to finance approval" – more like "suject to finance approval to buyers finance approver" – that's not quite is but you get the point.
I tend to agree with what Dan did, makes much more sense and leaves you with time to sort out if any problems arise.
so basically exchange contracts and have building/pest inspectors ready so they can get a report done within cooling off period. I think in NSW is 5 biz days for cooling off period – in the contract can you ask for a longer cooling off period like 7-10 business days? Is that reasonable if you tell them about the inspections etc.
You will find it very unlikely that the vendor will agree to extend the cooling off period – it is a statutory period. It would be more common that you undertake your full due diligence prior to making your offer then submit your offer wth a S66W waiving your cooling off period.
Just wondering if gazumping is illegal these days? Has it ever happened to anyone?
There can only be one contract exchanged Lizzie – ie regardless of the number of purchaser signed contracts that may be given to the vendor (via the agent) they are only obliged to accept one and exchange that one contract. If they exchange more than one contract then you would need to prove which contract was exchanged first to exert your claim. The cooling off period does not apply to the vendor.
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