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Contract details

Discussion in 'Legal Issues' started by MM16, 27th Jun, 2016.

  1. MM16

    MM16 New Member

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    Hi all
    I'm new to both property chat and the property world. I have read some very interesting threads and was hoping for some guidance.
    I'm looking to purchase in QLD, specifically around the logan region site unseen.
    I have come across a few properties that I wouldn't mind.
    I did want to place an offer on a property, however, my MB has requested I not submit a formal proposal until i run it by him. Don't know if that is the norm?
    I have asked a real estate agent if i could put through an informal offer and his sent a form to complete.
    Should i already have a solicitor on hand?
    Also, what special considerations does one put on the contract?
     
  2. Joynz

    Joynz Well-Known Member

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    What is an 'MB'?
     
  3. MM16

    MM16 New Member

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    Mortgage broker
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Some times it can be worth chatting to your MB prior to putting in an offer - for eg in Qld, settlements get expensive if they go over the set date so he/she might just like to make sure there's enough time in the contract for finance and settlement, especially if you live remotely or the lender you're using is a bit slow for eg.
     
  5. markson

    markson Well-Known Member

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    Probably just so he can check the finance clause. Subject to X days.
     
  6. Daniel Taborsky

    Daniel Taborsky Well-Known Member Premium Member

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    Yes. A solicitor and tax advisor can do more for you (e.g. structuring) if you engage them before you make an offer. A solicitor can advise you on what special conditions to include in your offer.
     
  7. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Different brokers have different ways of doing things.

    I generally look over supporting docs, etc and make sure I'm reasonably certain that finance will be approved before I give clients the OK to start placing offers. I generally request that they have a finance clause as a backup - if they want to forego the finance clause then I'd likely arrange a pre-approval with a lender that actually assesses pre-approvals.

    Cheers

    Jamie
     
  8. kierank

    kierank Well-Known Member

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    If you haven't, then I would insert a special condition along the lines of:

    This Contract is subject to and conditional upon the Contract being reviewed within 10 business days from the Contract Date by the Buyer's solicitor and the review report must be to the Buyer's satisfaction. Should the review not be satisfactory to the Buyer, the Buyer may terminate the Contract by notice in writing to the Seller's solicitors within the 10 business days, and the Deposit paid will be refunded to the Buyer.​
     
  9. MM16

    MM16 New Member

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    Thank you all
    Much appreciated
     
  10. Marg4000

    Marg4000 Well-Known Member

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    You can insert any clause you want.

    But as the vendor, I would read this clause as. " I don't know if I want your property. But how about you take it off the market for 10 days while I make up my mind. Oh, by the way, if I don't go ahead you don't get anything".
    Marg
     
  11. Ed Barton

    Ed Barton Well-Known Member

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    yep. I'd tell the buyer to get their solicitor to review and then come back and sign.
     
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  12. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Agree - I'd give them a copy of the contract, and once it has their soli's approval they are welcome to sign.
     
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  13. kierank

    kierank Well-Known Member

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    As a vendor, would you also read the Finance clause as. " I don't know if I want your property. But how about you take it off the market for 20 days while I make up my mind. Oh, by the way, if I don't go ahead you don't get anything"?

    Of course not.

    I put that Solicitor clause plus a number of other clauses in every Contract I have signed over the last 15 years (the last one being in February this year) and I have never had the response you are suggesting.

    BTW, I have only ever pulled out of one property Contract in my entire life (and there have a lot that I have signed) and that was due to a B&P inspection.
     
    Last edited: 29th Jun, 2016
  14. kierank

    kierank Well-Known Member

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    I have a different approach - I don't like incurring legal fees until I have the property under Contract.
     
  15. Ed Barton

    Ed Barton Well-Known Member

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    Then you won't buy my place.
     
  16. kierank

    kierank Well-Known Member

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    I will just have to buy the one next door. Now you'll have me as a neighbour :) :).
     
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  17. Ed Barton

    Ed Barton Well-Known Member

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    Not for long. I'm going to sell it to a terrorist.
     
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  18. kierank

    kierank Well-Known Member

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    So you are going to sell to me. Make up your mind.
     
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  19. Big Will

    Big Will Well-Known Member

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    Nothing stops you from advertising the property as normal, run your open house as normal. So you don't lose anything it is just the same as a STF.

    It would be stupid to stop advertising or marketing a property when a property is not yet unconditional, regardless of which condition hasn't been met including cooling off.
     
    kierank likes this.