Buying Property (in NSW) Subject to Finance.

Another question for those in NSW.

Unlike a ‘subject to finance’ clause, the cooling off clause gives you broad discretion to withdraw from purchase. Assume you have negotiated 10 days cooling off.

Apart from locking in finance, what else is normally checked off during that 10 day period. Is it normal practice to:

1) Get a building and pest report on the property (assume house);

(And if the building and pest report highlights issues (assume minor), it is normal for that report to be used in any particular way. Eg. used to ask for a further price reduction??).

And

2) Lawyer or conveyancer to review contract of sale and/or title documents during the 10 days.

Not looking for specific advice as such. Just want to understand what is generally accepted practice when buying a house in NSW.

 

You would normally get a lawyer to review the contract before entering it

 

Is this normally done before signing it. Or is this legal check normally done after signing but before the cooling off period ends?

 

Depends how willing you are to lose 0.25%

 

You'll get a range of approaches here, from downright ruthless to a more fair approach. Imo when you tie up a contract in a COP, the balance of power often shifts from the seller to the buyer for all sorts of reasons . Many emotional/psychological, some financial too.

How you play it is upto you. How I approach it is if there are any significant issues on the BnP that you weren't made aware of pre COP, I would try to get an estimate for cost of works and then recoup some or all of it with a price reduction .

How you use the BnP is upto you. Of course if your requests are too ridiculous sellers can just not sell to you .

 

Sorry, what is a COP? Certificate of Participation?? I don’t understand this term.

 

Cooling Off Period. I'm just a lazy ass.

 

So it is. My Sunday morning brain fade.

 

Time for your smashed avo and latte

 

The .25 and other costs usually deter minor price haggling. On a 600k property the sunk cost to the buyer would be 1250 plus inspection fees. If they pull out theyll have to do it all over again and more inspection fees.

Ive had a buyer try to get 2k discount based on the inspection report. I said youve sunk that much on the .25 and inspection already, and told them if they want they can crash it. They caved.

 

Hoping this is the final question.

In Victoria, before purchasing, you receive a s32 which provides comprehensive report on the property. First thing I look at in this s32 document pile is the title plan that shows exact land dimensions.

On one purchase, I checked the s32 and land size was different to the agent’s advertising. I reduced my offer price.

In NSW, there appears no equivalent to the s32. So, what document do you look to determine the exact land size? Do buyers just take the land size as indicated by the agent at face value ahead of making the offer?

 

Have you actually seen a standard nsw contract? A title plan is usually included.

 

A client bought an OO not long ago at North shore (Sydney) around the $2 mil mark, they told me it was normal practice for buyers to aisi contract without cooling off. Luckily we had pre approval in place. I got me quite nervous, but it came good in the end.

Better to have pre approval before sign the contract in NSW.

 

No I haven’t. How can I get my hands on one?

 

Go to an open. Give the agent your email and ask for a contract.

Have you actually researched the process in NSW? Its crazy to think nsw doesnt have a document that shows land title. Also weird to ask for the NSW equivalents to every Vic thing.

Start with the steps involved in a NSW purchase. What needs to be done in each step. Then question it instead of starting everything with 'in Melbourne, we'.

 

It's pretty rare to get anything like a Section 32 or offer docs with title in Perth as well. We have no cooling off either but because of that Subject To-s are on 90% of offers.

 

Thanks Westminster, good to know.

 

So much wrong with this. If you want to see how confident he is about what he said ask him to put it in writing and guarantee to pay the difference between contract price and valuation (in the unlikely event that it comes up short) - see what he says then.

It would seem you need some help with this honestly, plenty can go wrong if you don't use caution. Please be careful.