Buying first IP

That works for real? Any other clauses that vendors will accept without raising eyebrows.

In WA, I think the satisfactory inspection must be by a building inspector so I doubt I can influence his report.

 

My comment was in relation to a scenario where by you make an offer site unseen for what ever reason and following up with an inspection after contract acceptance.

 

There is a cooling off period in some states, QLD is one of those states.

 

Im not 100% sure on all states but the 4 states we have holdings in have a cooling off period period. I would hazard a guess and say the remaining states/territories would be the same.

IMO having multiple contracts on the burner simultaneously solely reliant upon exercising the cooling off periods is a recipe for disaster - for what ever reason 'time' gets away from you, then, by default you have progressed to conditional approval.

 

Can the seller also cancel the contract during that period?

From here:
If the buyer chooses to cancel during cooling-off period, the seller:

• may deduct a penalty of up to 0.25% of the purchase price from the deposit

How to get around that?

 

What @Rixter said. I have also said subject to not accepting another offer first. This has happened to me multiple times and there was no legal issues. But the party which was slower weren't too happy... ya snooze ya looze

 

@JohnPropChat But please get expert legal advice on how to structure the contract clause to protect you 100%.

 

That's clever. Didn't know clauses can be so one sided, I suppose buyer protection and what not.

When I was looking for my current place I used the time clause - Must sign before COB day and if they got back to me after that, I can still accept it or not.

 

may is the operative word, the general consensus is this never happens... your initial holding deposit can be $0 anyhow, or maybe just $500. It's when it goes unconditional do you have to put up a more significant deposit.

 

Oh boy can they be! Depends how switched on the lawyers and buyer/sellers are. I have gotten clauses in contracts accepted that I was CERTAIN would be rejected, 1 being an 18 month settlement!

 

If you are submitting multiple offers, state the initial deposit is due upon acceptance by the seller.
Once the contract is signed by both parties and if you have paid a deposit and decide to pull out during the cooling off period, you may be liable for the 0.25% amount that you mentioned.
Keep in mind that is only $1,250 on $500,000 so not the end of the world, and to use a well worn cliche 'a cost of doing business'.

 

@Azazel I have had contracts drawn up where the 0.25% is not payable if I submit proof that another contract was already executed on. Granted this is hard to pull of in certain markets, but in the early recovery phase and with the right agents it's all good to get acceptance.

 

Yeah but $1250 will eat into available deposit but nevertheless a reasonable exit strategy if the vendor pushes too hard.

Then there is a window where I can just text the remaining agents(assuming vendors haven't signed) that the deal is off. Apparently, offers are fully retractable before the vendor signs.

 

is anyone happy to share the wording they have used in offers so as to be able to make multiple offers by PM.

I wonder the legal aspect of having wording saying that you will be making multiple offers to multiple vendors and that you reserve the right to choose from any accepted offers, I suppose it is fair enough seeing they can accept other offers too.

 

If you only have the serviceability for one.. Easy.. Only one will get approved.. Then the other can escape under finance.. No ideal but not a big deal.

 

@dabbler Definetly have your lawyer write it up mate.

 

There are Cooling Off Clauses in Australian States.

In Qld you can certainly get out of the Contract if it was "subject to finance" as the finance needs to be on terms acceptable to you.
We regularly get asked by forum members to write a letter confirming that their finance has been declined.

Cheers

Richard

 

I was under the impression in WA that you can not alter the contract.
As in it's an industry standard contract and any amendments are invalid.
Mayb just for new builds. ?
Anyone know for sure either way?

 

Not the case.

 

You can alter the contract - I have done so in the past.