90 day settlement

hi all,

if you're worried you might loose your job but have found a amazing deal. but are waiting for funds to come (why it's a 90 day settlement)

can you do a 90 day settlement and if you loose your job / funds don't come. bail out? without loosing money. etc maybe have a 90 day finance clause?

has anyone done this before? is this normal or would a vendor turn it down straight away? (i would)

 

90 day settlements aren't that uncommon at all. My last purchase had one, and so have other peoples recent purchases too.

Could certainly have the finance clause that long as well (if the vendor agrees) but this is more unlikely than the above.

But, you say you might lose your job. I probably wouldn't put yourself in a risky position like that.

Whether you lose money or not depends on which state you're buying - they all have different rules on this.

 

i'm buying in qld, so say if i sign the contract and put down a 1k deposit . and all is well finance is approved but come to settlement and i've lost my job / have not obtained the funds (what ever reason) and cannot settle. what normally happens?

 

Either
A) Finance has already been unconditionally approved and settlement continues. I doubt you can stop it, so you successfully purchase (too bad if you can't afford the repayments)
B) Finance isn't approved and you can exit the contract using that, and you surrender your $1K

You still haven't acknowledged the losing job part though - Why are you property shopping if your financial status is about to change for the worse?

 

The vendor will expect you to go "unconditional" once your finance has been approved and you're satisfied with the building and pest inspection. They typically allow 14-21 days from your offer being accepted for this to occur. After that point - if you pull out post "unconditional" contract you'll be up for some high reimbursement costs to the vendor.

If you think you'll be losing your job then best to give the property a purchase a miss until you're situation is more stable.

Cheers

Jamie

 

It is possible.. I just don't see what is in it for the vendor!

 

A vendor isn't going to let you remain unconditional on the finance clause for the entire 90 days right up till a few minutes before settlement. You couldn't get this done without losing "some" money. You'd at the very least lose money the solicitor would charge for acting on your behalf. Some building and pest money. Deposit money depending on the wording of the finance clause.
As has already been pointed out, there is nothing in it for the lender to let you have all care and no responsibility for the entire duration of the contract phase.

 

I have something similar (but not losing the job part). I am settling a property on Friday and will have 2-3 weeks of reno before letting it out (PM appointed). I just came across a property that I really want (good future yield) but my broker informed me that I must have the first IP rented out first before I am allowed to borrow (even though I'm quite confident that bank will lend me and I have enough cash to meet the difference) so I'll probably miss the opportunity to get this second IP until first IP is rented out. If only there's a way...

 

90 day settlement - not uncommon at all.

90 finance clause - rare as hens teeth.

The best I've had is 60 days subject to finance, only because I had two other properties being renovated at the time and a ripper deal came up just as I left Australia to go on holiday- so I called up the agent to put the offer in whilst sitting in an airport in Kuala Lumpur.

If you're concerned about your current employment, you either have to take the risk of unemployment OR find a more stable role so you can enter into contract with ease.

 

Last night I emailed the agent of the property I like to make an offer subject to 60 days finance clause giving reasons. Would be interesting to know her response. No harm trying right?

 

Yup, plenty of fish in the sea.

To negotiate I usually try to address vendors needs in terms of fast / slow settlement and what conditions they need. Then, they'll be more accommodating on price

 

Yes I know. it's a deceased estate but I don't think the Probate has been granted so might take a while to sell.

 

This is why I love this forum... Lots of positivity.

 

I've offered on one of these before (didn't go ahead due to B&P reasons), and had finance and settlement dates specified as a probate date + X days.

 

The owner died on 4 September 2015 and notice of intended application for probate is 8 September 2015. Needs 14 days to lapse. That would be 22 September 2015. Then executors need to apply for probate if no notice from creditors. That would take few weeks. The executors have acted really quickly even without a grant of probate.

 

@The Y-man One agent contacted me about a property and I told her my finance situation and 60 day finance clause and she said vendors are open to negotiation. I think agent found it hard to sell as tenants are in it. But the numbers don't stack up unless $100K off the asking price. Not a bad area either I think.