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Buying half a duplex without a real estate agent in QLD

Discussion in 'The Buying & Selling Process' started by foal40, 25th Oct, 2015.

  1. foal40

    foal40 Member

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    Hi, I'm after some advice for the process and possible pitfalls for someone buying a property in QLD without any real estate agents involved. A "private sale", I'm guessing is what this is.

    My neighbour is selling her half (the other half) of the duplex I currently rent. She hasn't signed on with a REA for the sale yet, but she has offered the place to me at exactly the price I would pay for it. What's the buying process if I don't have to deal with a REA? This is my first home purchase, and it's going to be my PPOR. I am planning to engage a solicitor (as opposed to a conveyance) for the purchase, and fully intend to do a building and pest inspection. But how do I go about formally making an offer and putting it all in writing? At what point do I engage a solicitor? Are there any possible problems with buying a house in this fashion? (I'd always assumed I would be dealing with an agent!). We've agreed verbally on a price and rough time frame for settlement. I'm just not sure how to make it formal.

    Also, as it's a duplex, does anyone have any tips on what I should look out for in the body corporate terms before I buy, and how much money should be in a sinking fund? The duplex was built in 2010 and I'm told that the owners each put in $70 a year to the sinking fund. BC is about $500/year. The duplexes were bought for $309k each in 2010, if that helps. Do these numbers sound reasonable? I had never intended to buy a unit/townhouse/duplex, but it's a bit of a bargain and the timing is perfect for me, otherwise I would have done some research on the subject ages ago!

    Thanks anyone for any advice.
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Ask her for her contract of sale. Show it to your solicitor and go from there.
     
  3. Truly Exotic

    Truly Exotic Well-Known Member

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    which half are you buying?? the left or right? or the Top or Lower? :)
     
  4. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Written offer on contract is the way to go. Many solicitors will charge extra to draft the contract, but, unless there are a lot of special conditions, my team doesn't.
     
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  5. foal40

    foal40 Member

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    Why do you need to know?
     
  6. samiam

    samiam Well-Known Member

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    torrens or strata title?
     
  7. foal40

    foal40 Member

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    Thanks, whose responsibility is it to have a contract drawn up in this case? The seller is telling me her solicitor told her it's my job to get a conveyancer to draw up a contract. I've called a couple of local conveyancers and they told me it's usually the seller's. Does it make any difference, other than potential cost?

    Also, because she's now suddenly under a lot more pressure to settle on the new place she's buying by 01 December she wants me to get the contract done and dusted by Friday, but with her terms! She wants the settlement of the duplex to happen on the same date as settlement on her new property. To speed things up she has suggested I get a generic contract of sale from online somewhere and we can possibly sign that by Friday. Are there any problems with using a generic contract (as long as the terms are clear and agreed) and taking that to my solicitor before signing it for a look over?

    I'm not inclined to allow her to have it all her way and won't be agreeing to her proposed settlement date. But I did wonder about her online contract suggestion.
     
  8. foal40

    foal40 Member

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    Pretty sure Torrens.
     
  9. RPI

    RPI Property Lawyer, Town Planner Business Member

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    It is normally the seller's but either party can prepare.

    Friday is a world away time wise. Any good law firm will draft a contract and get it back to you the same day, let alone days away.
     
  10. CU@THETOP

    CU@THETOP Well-Known Member

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    Don't go the online or do it yourself way-it will only break your heart.

    As a lawyer I love people who have "Do it yourself Wills". It almost always guarantees me more legal fees fixing the mess up.
    Darryl/RPI is right. Shouldn't take a good lawyer more than 24 hours to prepare although as it gets closer to Christmas the regulars have their work prioritized. Just sayin.
     
  11. Scott No Mates

    Scott No Mates Well-Known Member

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    • @foal40
    • It is unusual for the purchaser to prepare the contract of sale for a house unless you have actively sought out an off market transaction
    • If you have elected to have the contract prepared, it can be in your favour eg. removing all penalty clauses for late settlement (ie loss of deposit)
    • Plenty of solitor contacts on this site or yellow pages.
    • Your solicitor will need to arrange searches eg. zoning certificate, plumbing, survey, strata search, p&b
    • $70/annum for sinking fund - stupidly low but it means very little money is set aside if an issue on common property arises eg: tree roots, cracked concrete etc however there is little point tying up thousands of $ in a bank account if there are only two properties and very little common area.
     
    Last edited: 31st Oct, 2015