Advice on making offers, conveyancing costs

Ok so ive found my first property and wish to make an offer. Just have a few questions.

1. How is it actually done? Is there a standard form to make the offer with?

2. I'm in NSW and dont have a structure set up yet. Can I include a condition whereby I can assign it to someone else, or to an entity (which may be created post offer) without incurring stamp duty twice?

3. What clauses should i include besides subject to finance, building and pest inspection?

4. The place is a bit run down. No ones lived in it for a while. The windows are boarded up. I need to get in there so i can ascertain costs to reno for the financier and a feezo. How would I go about this in the offer? Can i ask for unrestricted access for a period?

5. How long a period should i ask for to get everything done? (research and POTENTIALLY CRETE A STRUCTURE, GET TRADES AND BUILDER IN THERE FOR QUOTES, organise finace etc)

6. Do you need a conveyancer for the making of the offer?

7. Whats a good price for conveyancing on a property deal?

 

Have you purchased before? Most of your post is scary. Structures should be created in advance. If your buy is complicated, dont try to save a few hundred and get a solicitor. Nsw contracts usually dont have separate finance and bandp clauses.

 

Sure

1. Verbally
2. Text (sms)
3. Email
4. Letter of offer (agent provides template)
5. Signed contract

Nope, not in NSW

No "subject to" clauses required in NSW - that's what the cooling off period is for.

You can ask for whatever you need.(It does not mean the vendor will agree).

You need to have created the structure already before you look at making offers, along with finance pre-approval. Tradies should be lined up already to do their quotes and inspections in the cooling off period.

NO, never let a conveyancer or solicitor make offers on your behalf. Let them do a contract review before you sign and suggest changes by all means but not make the actual offer and subsequent negotiations.

$1,500 or so in NSW for a conveyancer. (avoid the under $1K ones!!) Solicitors are usually $2,000-$2,500

As the others have said, your post is really scary. You need to get more educated on the process. But congrats on making a start. Keep asking questions.

 

Get legal advice before making an offer.

An email could well constitute a legally binding offer that is accepted.

What if you said i offer 600k subject to finance approval. You then submit a loan and they approve you for 50% being 300k but you wanted 70% 420k. You havent stipulated that. The vendor may well say you have approval but just arent accepting it. They keep your deposit and fight it in court.

Ive read on a number of law firm sites if you stipulate subject to finance approval and put NAB as the lender for.example and you end up not applying for a loan with NAB youve breached the contract.

@Terry_w probably has hundreds of more examples. The courts do.

 

Nah i havent purchased before mate.

The deal is a little confusing to me because its my first deal, things ive read from books which probably dont apply in NSW and the fact that someone else actually made the offer, has engaged solicitors and now they dont want the deal. I'm taking over the deal. The agent wants to put my name in place of the original offerer and is being pushy. I dont want lose the deal because it looks very good.

 

So i did have a chat with a solicitor. I think he said cooling off period is 5 days. He also said I'm committed to nothing unless i sign a contract ( i could be mistaken though, he was a liitle hard to understand)

If i pull out in the cooling off period, do i forfeit anything?

 

Why dont the other person want the deal? Did they actually sign the contract? If they did, you cant change the name. If your signing a new contract, do you want the same terms as the other person?

Why does it look very good? Is it good just because it seems cheap? What experience do you have to evaluate the deal correctly? eg your a reno expert who can see what to do with it, a building expert who knows if there are structural issues with it. Or at least have experts lined up who can evaluate everything during the cooling off (are you going to extend cooling off? Going to sign a 66W certificate?)

What are your finances like? Can you get finance for the renos or do you need / have the cash? Whats your broker say?

No idea what the deal is, but these are the questions you should be asking.

Who is paying / paid the 0.25%?

Everything still sounds scary.

 

yes, 0.25% of the purchase price.

 

Yes it is a bit scary right now but its not a lot of money so not too scary. (very cheap house).

I am lining up tradies to get quotes on the reno.

I have a good idea on what it could sell for based on other sales in the area.

Some good questions there mate. I'm taking it all on board.

 

Just make you own offer.

 

They've had contracts drawn up already.
Will it cost them alot do you think to redraw contracts up? Or is it just a matter of changing some minor details?

 

^ yes, this.