Buying a property privately - contract inclusions

Discussion in 'The Buying & Selling Process' started by annaw5599, 31st May, 2018.

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  1. annaw5599

    annaw5599 Active Member

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    Hi all

    We are looking to buy a property privately from owner. He had accepted an offer we have made, 6 month settlement terms (as he has a tenant in the property) and subject to finance / sale of our house. He has indicated he would like a $20k deposit upon signing the contract.... does this sound right ? I can’t recall (as we’ve previously bought and sold Through agents) whether if there is a finance / subject to sale clause you pay a deposit up front ? What happens if in the 6 months we don’t sell our home ?

    Thanks guys
     
    annaw5599, 31st May, 2018
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  2. Trainee

    Trainee Well-Known Member

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    Buying without agent doesnt mean you dont use a lawyer.
     
    Trainee, 31st May, 2018
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    jprops, annaw5599 and Terry_w like this.
  3. The Y-man

    The Y-man Moderator Staff Member

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    Question 1: Which state or territory is the property in? (yes it matters)
    Quesiton 2: how much is the deal for

    Note: when buying, I have paid a deposit regardless.

    The Y-man
     
    The Y-man, 31st May, 2018
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  4. Terry_w

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

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    Who will hold the deposit?
     
    Terry_w, 31st May, 2018
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  5. annaw5599

    annaw5599 Active Member

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    In Tasmania ... house cost $525k
     
    annaw5599, 31st May, 2018
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  6. annaw5599

    annaw5599 Active Member

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    Sure I need to find out! Owner also hasn’t sold privately before ... he was speaking with his solicitor in the next few days. Real estate would normally hold deposit right ? Or not ? I’m so clueless on this stuff !
     
    annaw5599, 31st May, 2018
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  7. annaw5599

    annaw5599 Active Member

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    So if we don’t sell our house within the 6 months ... then what with the deposit ? We’ve also not purchased a house subject to another sale before ...
     
    annaw5599, 31st May, 2018
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  8. Terry_w

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

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    Usually the agent would hold the deposit on trust until the completion. If you pay it to him perhaps it will be hard to get back if you pull out, so you should probably pay it to a solicitors trust account.
     
    Terry_w, 31st May, 2018
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  9. annaw5599

    annaw5599 Active Member

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    Thank you so much for your help. That’s what my hubby said but I wasn’t sure !
     
    annaw5599, 31st May, 2018
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  10. Terry_w

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

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    And all these terms are up for negotiation. They can be included as conditions in the contract - which he will need to prepare as vendor, but which you can insist be modified before agreeing to it.
     
    Terry_w, 31st May, 2018
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  11. jprops

    jprops Well-Known Member

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    I assume your conveyancer could help you with all this.
     
    jprops, 31st May, 2018
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