Can someone explain the buying process in Victoria

Discussion in 'The Buying & Selling Process' started by Chilliblue, 5th Jan, 2017.

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  1. Chilliblue

    Chilliblue Well-Known Member

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    Am looking at making an offer of and am uncertain how different the process is to NSW.

    Cheers
     
  2. tobe

    tobe Well-Known Member

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    3 day cooling off period, finance or pest and building etc clauses available and generally accepted in most markets.
    Usually your offer is done with a signed contract. The agent has to present any written offer to the vendor. The vendor can coubtersign, or amend and initial, or ignore your offer.
    Beware if starting negotiations with the agent before putting pen to paper on a contract of sale.
    Usually 30,60 or 90 day settlement periods.
     
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  3. The Y-man

    The Y-man Moderator Staff Member

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    Generally (for a "private sale", which is anything other than an auction):
    1. inspect property
    2. ask for a "section 32" (vendor disclosure doco) - this signals to the agent you are interested. Most will email you the same night
    3. Take a good read of it, make sure no surprises
    4. Arrange meeting with agent, talk price
    5. They will generally pull out a standard REIV contract which has printed on there that you offer is valid for 3 business days unless otherwise indicated, and a box for special conditions (such as subject to finance, B&P etc etc).
    6. Fill in the details on 3 copies, sign and initial each page and every bit of writing (truly far more signatures buying a property than selling ~ which only needs about 1 signature)
    7. This contract becomes the offer, and if the vendor countersigns it, becomes the signed contract of sale.
    8. The vendor may counter offer, in which case the offer price needs to be changed on all 3 copies, and all changes initialed and it gets sent to the vendor again.............
    The Y-man
     
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  4. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Thanks @The Y-man and @tobe , I never realised how similar it is to the Qld system . Can anyone share the NSW system ?
     
  5. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    In NSW you come to an agreement on the contract, but it's not signed or 'exchanged' until finance is obtained and the contract is immediately unconditional from then on. The contract is a single page which has the most important details, but is otherwise very lightweight.

    In VIC, you sign a contract immediately and it may have various conditions which need to be met before going unconditional (finance, building & pest, etc). VIC also has the Section 32 which has a lot more upfront disclosure around the property.

    QLD is similar to VIC, but there's a lot more detail in the VIC section 32 than there is in the QLD PAMD forms.

    Personally I think the NSW process is open to a lot of interpretation and misrepresentation (from all parties). It also leaves the purchaser vulnerable as the vendor could take alternate offers prior to exchange (surprisingly I don't think I've ever seen this happen however).
     
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  6. Agent30yrs.

    Agent30yrs. Well-Known Member

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    Thanks. I'm surprised, I would have thought that was rampant given the market we have seen .
     
  7. larrylarry

    larrylarry Well-Known Member

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    moving to Geelong? Or was it somebody else? All the best!
     
  8. Chilliblue

    Chilliblue Well-Known Member

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    No..way to cold for us.

    A possible off market opportunity has come up and am working through my due diligence.
     
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  9. Melmac

    Melmac Well-Known Member

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    Hi @The Y-man I have a follow up question on this.
    Before making the written offer and signing the REIV contract, would you generally get your conveyancer to have a read of both this contract and the section-32?

    Also do you straightaway make a written offer or start with a verbal discussion or possibly an email to indicate what you plan to offer?

    These questions are specific to process in VIC.

    Thanks in advance.
     
  10. Marg4000

    Marg4000 Well-Known Member

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    To the advice already given, I would add to get your solicitor to check the contract before signing.

    If the RE agent draws up the contract, or uses a standard form, always remember that he/she is working for the vendor.
    Marg
     
  11. The Y-man

    The Y-man Moderator Staff Member

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    As a first timer, have a lawyer go through AND explain to you what is in there (will help if you read it first so you can ask about anything you don't understand). Next time, you will probably not need to unless there is some unusual set up such as a caveat or special condition etc.

    If the section 32 looks normal/doable - let the talk begin. Don't offer anything before looking through the S32 as there may be something in there that will affect your offer (like an easement running under the house!)

    Ask to meet the agent to put in a written offer. They will ask you how much ~ indicate the lower edge of your range WITH reasons.

    "Look, considering the age of the property, the repairs needed in the XYZ, the bogans next door, yadda yadda, we are looking at around $X"

    They'll either say "no thanks" or "come in, let's talk..."

    The Y-man
     
  12. Melmac

    Melmac Well-Known Member

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    Thankyou for the detailed response.
    So when we go in to sign the written offer, we just read it there and then,add any conditions like subject to finance etc and sign it? No need to consult the solicitor for this? I am sorry I am a bit confused even though we have bought once before. I feel like I knew nothing back then but luckily the whole process went well.
    But tyring not to leave things to luck this time.
     
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  13. The Y-man

    The Y-man Moderator Staff Member

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    The standard contract is pretty much in plain language.
    If you are making the offer subject to finance and/or building pest inspection, get a solicitor to give you the exact wording.
    A "satisfactory building/pest inspection" can mean anything.
    Your offer will stand for 3 business days (I think) unless you change it on the form.

    There is also a cooling off period once the vendor counter signs and accepts the offer. Please read;

    Buying property by private sale



    The real estate agents are usually pretty good in explaining what each line of the contract means etc.


    The Y-man
     
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  14. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    You could ask them to email you the contract, take it to your solicitor to vet before signing it. Your solicitor can add the appropriate clauses, but this is fairly open to interpretation. I recently asked a solicitor if they've got standard building and pest clause wording, I wasn't really impressed by what they used. A buyers agent gave me far more favourable wording for B&P clauses.

    Finance you simply need to fill in the name of the lender, the amount and the time frame for finance to be obtained. Your broker or banker should easily be able to supply these figures.
     
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  15. Melmac

    Melmac Well-Known Member

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    Thankyou, that makes a lot of sense now.
     
  16. Melmac

    Melmac Well-Known Member

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    Thanks for your response Peter, I will discuss with my solicitor and see what they suggest.
     
  17. burntturnip

    burntturnip New Member

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    I'm in a very similar situation, bought once before and trying to be less of a dummy this time around haha.

    Looking at a Vic prop, have received S32 but vendor is "preparing the contract" so conveyancer wont review S32 until also have contract in hand.

    Meanwhile agent saying "happy to note your requirements (needs an updated Owners Corp Cert) as a condition of purchase when you’re ready to make a formal offer."

    So how do I make a formal offer if I'm waiting on agent / vendor to 'prepare the contract' - I guess I don't? Or put feelers out about favourable terms / pricing? Ugh I hate negotiations
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    That's weird - never had a s32 available without a contract. Something odd AFAIK.

    The Y-man