Hi Guys
Been looking around on the net and found some properties that I think will be CF+. My main worry is that because it is a country town, there will be a chance that the property will just be sitting there. Im looking to buy into a really cheap area and since it is a country town, it is even cheaper.
The first step is to make an offer on the proprety – how do I go about that? i have read that there are clauses (subject to finance, pest checkup, etc, etc). Do i just find a list of all the possible clauses there are, copy and paste into a word document and just print it off and send it to the agent?? or should this be done through a lawyer???
also, since i am afraid of the property just sitting there, is it possible for me to make an offer on the property, based on:
1) The current tenant resigns on for another 1 year lease from when his current lease expires?
2) Have a look at the current records available to see if the tenant is a good tenant (i.e. did not go into arrears, doesn't call the PM if there is a bit of paint flaking off)Are the above two conditions OK??
thanks
ken
i think you make an offer ,to see if you and the vendor can agree on a price… you can do this without any written statements , just tell the agent iam offering 200k and i would like to make the sale subject to finance /building report…the clause will be incuded by your lawyer in the contract,make sure its included before you sign the contract…you always have a cooling off period ,length depending on state, in case it all went wrong ( doesnt apply to auction conditions)
as long as you havent paid a deposit and signed a contract you dont need to worry …make an offer thats very low and see what happens ,maybe they dont accept and you have to make another offer , good practice
you obviously make the purchase subject to finance not the sale …sorry
Does anyone have any experience regarding putting offers in subject to:
1) The current tenant resigns on for another 1 year lease from when his current lease expires?
2) Have a look at the current records available to see if the tenant is a good tenant (i.e. did not go into arrears, doesn't call the PM if there is a bit of paint flaking off)
I always hear 'subject to finance' but that is sort of vague. I would be able to acquire finance but it is more important for the existing tenant to sign on than me funding the thing (otherwise it wouldn't be an investment!)
I would add a 'due diligence' clause of 14/21 days – that way you can investigate the things you need to and pull out should you find out some information that you aren't happy with.
I'm currently negotiating a property purchase which i have submitted the offer via email and doing the negotiations all via email.
Because i know all the variables to the property I'm only going to submit a 'subject to finance' clause because if everything else is right you don't want to come across as being to difficult. Putting a list is not necessarily you only need one or two possible. If you are naive, you will be paying a conveyance and or a solicitor anyway so do not sign anything until they check it.
If you are still not sure of a solid clause, you only need one clause as it is designed to 'get you out' of the contract if you want in most cases.
"The purchase is subject to due diligence to the sole satisfaction of the purchaser."
Then if for any reason in your due diligence (research) you find that you want to 'pull out' then you simply ask your solicitor and he/she will write a letter to the vendors solicitor to recind you from the contract.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
