What does it mean and why would a seller put this in the contract?
“I understand and accept the effect of giving this certificate to the vendor ie. there is no cooling off period in relation to to the contract"That means if you sign you are locked in. You are waiving the cooling off period – which is very dangerous, get legal advice before signing.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Sounds like the vendor wants the buyer to waive the 3 day colling off period (which is standard in Vic for all Private Sales). If you do like the property and want to buy it, have a solicitor/conveyancer read the Section 32 and contract first to check things out for you before you sign.
Good luck
DannyIt is very dangerous to do it… unless u have sorted all the finances/solicitor to view the contract and build/pest inpsection…
The general consensus is that it is dangerous to sign the waiver however if you have undertaken all of your due diligence (pest, building inspections & legals etc) and you are satisifed with all conditions (lawyer hasn't picked up any encroachments, or other problems) then it may be worth proceeding with signing the waiver.
The waiver is always put on the contract if the property is offered under auction conditions and is required to be signed as a safeguard for the vendor (so that if the property is taken off the market they do not lose any other potential sale).
From my experience, cooling off periods are a waste of time anyway. If you want out, you can always default on ANY building inspection, or possibly on finance through the relative clauses…I PERSONALLY wouldn’t worry about it….you may choose otherwise…
HandyAndy888 wrote:From my experience, cooling off periods are a waste of time anyway. If you want out, you can always default on ANY building inspection, or possibly on finance through the relative clauses…I PERSONALLY wouldn't worry about it….you may choose otherwise…Hate to disagree but I am going to disagree. One of my friends is a property lawyer and he says that the largest increase in his work has been vendors questioning purchaserswanting to get out on finance/building etc clauses. Once upon a time in a booming market, vendors just allowed purchasers out of contracts if the purchasers said that they didn't get finance/ problems with inspections etc, but in this current market, with purchasers very thin on the ground, vendors are now forcing purchasers to show evidence of their right to rescission. If finance is declined, vendors want to see evidence of this. If the contract doesn't stipulate which bank and interest rate the purchaser is going to finance through, vendors are forcing purchasers to go to other lenders that charge higher interest rates.
I would caution strongly against using "subject to" conditions as general "get out" clauses. You may be called on it and forced to complete the contract. Alternatively, get very specific special conditions written into the contract.
Cheers
K
Some people like high risk pursuits, I prefer specific performance. If you sign the waiver, I hold purchasers to it – not my problem if you didn't undertake your due diligence or listen to your legal counsel.
SNM
(and some wonder why).I'm with you SNM. Remind me never to buy a property from you!!
K
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