Hi all,
Just bought my first home, and the whole process has been a good learning experience right from the start. one question that props up in my head is this. Do all the experienced investors prepare their own contract of sale (with their solicitor) before buying property and submit to the agent while making an offer?
The reason i ask is during my hunt for property i signed 3 contracts with 2 different agents (which got knocked off) and all of them were the standard REIV format. the agents filled it for us and would not let us include the subject to building and pest insp clause on our terms. they had a standard clause for the same saying " subject to major structural defects/damage etc etc". i understand we dont stand a chance of getting out with this type of clause . so how can we deal with this problem.
thanks everyone
harryHi Harry – what state? Town or city? The last property we purchased we emailed the agents are offer and conditions. ie. subject to finance, settlement period, building/pest inspection, deposit – we also snuck in early access if property became vacant which was invaluable (this gets tricky with doing reno's). We also put a time limit on this such as offer expires by close of business on x day,month, year
It really depends on which state you're in, and also which agent you are using. I buy a lot in NSW, and I always get my solicitor to handle the contract because he knows how I like them done. It's just a matter of finding the common ground that everyone is happy with. However, in NSW, typically we get to haggle over the contracts prior to signing, rather than having to sign it on the day we accept the offer.
Generally, an offer is an offer and if the offer is accepted it is the conditions of the offer which are put into the contract ie your finance or inspection clause et.
I have not heard of the purchaser ever preparing a contract as it is the vendor's cost of doing business.
hi all
sorry i forgot mention the property is in Vic. melbourne.
what i understand from the above comments is that the buyer uses the contract prepared by the vendor but buyer writes the conditions like finance, building and pest, date of offer lapse etc etc and then hopes the vendor accepts it?
the estate agents we dealt with were quite adamant about the building and pest inspection clause( they wanted their standard format saying " buyer can terminate contract subject to major structural defects/damage etc etc").
how to deal with these kind of agents if you like the property and want to buy it / are convinced that this is a good investment deal?
thankyou everyone for the replies
harryJust tell the agent you will be taking the contract to your solicitor and then get hold of one, write in your clauses and give it back. If they refuse, insist or go straight to the vendor and tell them the agent refused this offer.
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
Hello,
I am not an investor but have just been through placing offers and dealing with real estate agents for our first home. Each and every time we had the same thing told to us that you have regarding the standard building and pest inspection clause. I was not happy with the standard clause and had written my own, so basically I was able to decide what was a problem and what wasn't, giving me freedom to get out of the contract if needed. My main reason was regarding asbestos, in their standard clause it was not a structural defect but in mine it could be.
The last offer we placed on a property was the one we purchased. To get my clause onto the contract I said straight out that unless they can show me in writing, from the real estate act and not their in-store policy, that I am not allowed to put it in it was going onto the contract! The result was they put it in.Cheers
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