Long time lurker, first time poster.
I made an offer on a property and it was accepted. I was waiting for the point where the agent would ask for the 0.25% deposit but it never came. Instead the contract of sale got sent to my solicitor and we went through it all but we are still waiting for the strata inspection. We are looking at exchanging contracts after that and then I would be up for the 10% discount.
I spoke to the real estate agent again and he mentioned if we were going to leave the exchange so late I probably wouldn't need a cooling off period since according to him all the inspections are normally done after the exchange.
My confusion is where we skipped the step of the 0.25% deposit. Does this happen frequently? And the agent confused me some more when he said the inspections were supposed to be done after the exchange. I thought they were done between the 0.25% deposit and the 10% deposit/exchange?
Also, another issue I have is I'm looking to purchase this unit as a PPOR using the FHOG except the tenancy doesn't end until the end of Oct. The vendors don't want to drag out the settlement and I'm happy enough to keep the tenants until the end of the lease. In terms of inspecting the property before settlement how does it work? i.e if I want to make sure there are no holes in the carpet under the lounge or no dents in the wall behind the fridge can I go in and start shifting furniture around (provided I've arranged this through the agent)?
Sorry for the massive first post… extremely nervous and in over my head at the moment
niyiaw wrote:Long time lurker, first time poster.I made an offer on a property and it was accepted. I was waiting for the point where the agent would ask for the 0.25% deposit but it never came. Instead the contract of sale got sent to my solicitor and we went through it all but we are still waiting for the strata inspection. We are looking at exchanging contracts after that and then I would be up for the 10% discount.
I spoke to the real estate agent again and he mentioned if we were going to leave the exchange so late I probably wouldn't need a cooling off period since according to him all the inspections are normally done after the exchange.
My confusion is where we skipped the step of the 0.25% deposit. Does this happen frequently? And the agent confused me some more when he said the inspections were supposed to be done after the exchange. I thought they were done between the 0.25% deposit and the 10% deposit/exchange?)
Hi you don't say where you are buying. In NSW you pay the the .25% and exchange contracts. You can put subject to finance etc. You do your searches ate in the cooling off period. Then you pay the 10%. As it stands you have nothing. The vendor can change his mind at anytime because you have not exchanged contracts. Do that ASAP and still ask for a cooling off period if you haven't got strata, finance etc. The RE agent sounds like a noob.
niyiaw wrote:Also, another issue I have is I'm looking to purchase this unit as a PPOR using the FHOG except the tenancy doesn't end until the end of Oct. The vendors don't want to drag out the settlement and I'm happy enough to keep the tenants until the end of the lease. In terms of inspecting the property before settlement how does it work? i.e if I want to make sure there are no holes in the carpet under the lounge or no dents in the wall behind the fridge can I go in and start shifting furniture around (provided I've arranged this through the agent)?Sorry for the massive first post… extremely nervous and in over my head at the moment
No probs with the tenant and FHOG. As long as you move in before 12 months is up and stay for 6 months. You can ask for another inspection anytime, they are usually accomodating. You are entitled to a pre settlement inspection. Do this the day before settlement. But be aware if you do find big holes in the walls you can't do anything about it once you've exchanged. If you have concerns look at it ASAP and then sign ASAP. I'd hate to see someone come in and take it under your nose (it happens).
Nothing is in concrete until you and the vendor have signed.
good luck.Catalyst wrote:Hi you don't say where you are buying. In NSW you pay the the .25% and exchange contracts. You can put subject to finance etc. You do your searches ate in the cooling off period. Then you pay the 10%. As it stands you have nothing. The vendor can change his mind at anytime because you have not exchanged contracts. Do that ASAP and still ask for a cooling off period if you haven't got strata, finance etc. The RE agent sounds like a noob.
Yep, NSW it is. I thought the exchange of contracts occured at the 10% deposit. Yeah I understand I have nothing as yet but wanted to check stuff out before signing anything. I already have preapproval for the finance. The strata report is on its way according to the solicitor.
Catalyst wrote:No probs with the tenant and FHOG. As long as you move in before 12 months is up and stay for 6 months. You can ask for another inspection anytime, they are usually accomodating. You are entitled to a pre settlement inspection. Do this the day before settlement. But be aware if you do find big holes in the walls you can't do anything about it once you've exchanged. If you have concerns look at it ASAP and then sign ASAP. I'd hate to see someone come in and take it under your nose (it happens).
Nothing is in concrete until you and the vendor have signed.
good luck.So at the final inspection before settlement, what happens if I do find faults that weren't there at previous inspections? Do I have the right to get the vendor to fix them (depending on how serious) and delay settlement? Or can the vendor potentially complicate things by blaming it on the tenant?
And a hypothetical scenario: I move in after the lease is up and find for example damaged carpet. If the tenant claims it was like that when he moved in would it be my word against his since I wasn't present when he first moved in? Can I deduct money from the bond to fix it?
Sorry if none of that makes sense. At the moment I'm just trying to think through the worst things that can happen and make sure I can prepare for them.
get a thorough inspection done by a reputable building inspector as well as your own eyes asap. If possible request copies of the tenancy inspection reports to check if there is any major concern.
niyiaw wrote:So at the final inspection before settlement, what happens if I do find faults that weren't there at previous inspections? Do I have the right to get the vendor to fix them (depending on how serious) and delay settlement? Or can the vendor potentially complicate things by blaming it on the tenant?And a hypothetical scenario: I move in after the lease is up and find for example damaged carpet. If the tenant claims it was like that when he moved in would it be my word against his since I wasn't present when he first moved in? Can I deduct money from the bond to fix it?
Sorry if none of that makes sense. At the moment I'm just trying to think through the worst things that can happen and make sure I can prepare for them.
Personally If I see something I want I know it will go quickly so I don't want to waste money paying for strata, solicitors time etc without anything in writing. I have backed out of one deal and lost .25% but I did my own strata search so only $50. I instructed the solicitor to not do anything until I gave the go ahead so no charges there.
If you can prove the damage was done between exchange and settlement you have a claim. But you can't look behind a fridge on settlement inspection and say Oh I didn't know there was a big hole in the wall.
Check with the leasing agent to see if they filled out a condition report and have done any inspections. They are entitled to fair wear and tear and should clean the carpet before leaving. If things are damaged you can make a claim against their bond.
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