Advice for offer/contract

Discussion in 'The Buying & Selling Process' started by Toucan, 27th Dec, 2019.

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  1. Toucan

    Toucan Well-Known Member

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    Hi, I live in Adelaide & recently attended an open inspection. I had decided to put in an offer, so called the agent to obtain an offer form as he didn't have any on the day, and he said we'll just do a 10 page contract? Is that normal? The last property I purchased I just texted the filled in offer form to the agent & the next day it was accepted, only after that was the contract signed.

    The other advice I need is that this offer/contract will have subject to finance & also have a date to obtain finance clause with a specified date that is 10 weeks away on my request, so settlement won't be for around 14 weeks, if they accept is there anything I need to watch out for? If I've already signed the contract & the owner changes or damages the house in some way how will that play out?

    Thanks in advance
     
    Last edited: 27th Dec, 2019
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    See a lawyer first before signing
     
  3. Stoffo

    Stoffo Well-Known Member

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    Plenty of info here, search wriiten offer.
    They would rather you sign a binding contract now, rather than put in a basic offer of an amount, then having to sort out the settlement terms and inclusions.
    You should inspect the day prior to settlement and the property should be "as inspected" when you viewed/signed, if not then don't settle and argue !

    Personally, I'd put in a low ball offer if they want it on a signed contract :p
    Then negotiate :cool: (take a contract copy to your property lawer asap)
    Or just put in a hand written signed offer of $X, subject to finance, and a building and pest inspection at your cost with results meeting your satisfaction ;)
    @Scott No Mates likely has an essay answer for you :D
     
  4. Stoffo

    Stoffo Well-Known Member

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    Or @D.T. is in SA
    Probably more up to date with local requirements and expectations :cool:
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Nah, it's @D.T.'s backyard. ;)
     
  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Yes, its normal. Some agents use offer forms, some dont bother and go directly to contract.

    They're all standard templates here so easy enough for buyers to review without going to lawyer / conveyancer.

    Once the seller counter signs the contract its a done deal.

    No deposit is payable until calling off period finishes, so can exit contract without cost if something goes wrong.
     
  7. D.T.

    D.T. Specialist Property Manager Business Member

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    Unlike NSW this is a buyer issue in SA. Highly recommend you start your insurance policy as soon as cooling off period finishes.
     
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  8. Toucan

    Toucan Well-Known Member

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    Wow! Thanks for all of the advice. There's one more issue I'm not sure about. This property has a 2br & bathroom extension that the owner said was done in 1995 (the house is a 70's brick veneer) and a lot of sheds. I've asked if they are all council approved & the owner said that they are but doesn't have a building certificate. Should I put off signing the contract & wait until the council reopens & check or take the owners word?
     
  9. D.T.

    D.T. Specialist Property Manager Business Member

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    You should get more info as part of the form1 package. Cooling off period doesnt begin til you receive it.

    Also consider title insurance (ask conveyancer for revommendations). If council makes you change the extension / shed, title insurance will cover the cost.
     
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  10. Toucan

    Toucan Well-Known Member

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    Aww thank you so much D.T. you've saved me a lot of stress. I'll look into it. Thanks again
     
  11. Archaon

    Archaon Well-Known Member

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    Can't stress this enough, was recently stung on a property purchase.

    Rang council prior to buying and they had no issue with an unapproved grannyflat, didn't bring up any flags on the property i should be aware of etc.

    16months down the track when I want to do a subdivision they bring up issues that they said they sent a letter to the previous owner in 2017 to return the into to a shed, i'm left holding the potato and didnt opt for title insurance against my lawyers insistance, for a small fee of $450 i would've been saved the cost of converting it back and also covered for any loss in property value due to the changes.
     
    Last edited: 27th Dec, 2019
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  12. property_noob

    property_noob Well-Known Member

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    How does it work in NSW? Do you just get home insurance with a policy start date of your settlement?
     
  13. D.T.

    D.T. Specialist Property Manager Business Member

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    Its the sellers responsibility to rectify things during settlement. Thats why they have a pre settlement inspection there
     
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  14. DaveM

    DaveM Well-Known Member

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    In SA it is the vendors responsibility to maintain the property in the same condition as of date of contract.

    Risk passes to the purchaser as of date of contract, so insurance required from the execution date
     
    Dan Wood likes this.