My understanding of the cooling off period is that I basically have full access to the property to do my building inspection for 5 days after contracts are exchanged.( The house is in nsw). If I find structural damage for example, I can pull out and lose 0.25% of the Is this how it works? Also, once I'm in the cooling off period, am I up for conveyancing cost or is the conveyancing work done in the settlement period? Thank you in advance for all responses to my questions.
the .25 is toast if you pull out You may be able to do a P&B before exchanging contracts. Conveyance cost will be partial not the full amount. Many solis will have rules around how much is payable on killed purchases ta rolf
You have as much access as the Vendor, or in some cases the tenant, is prepared to allow. The costs agreement that you signed with your Conveyancer, or their schedule of fees, ought to outline how much you will need to pay if you rescind the Contract within the cooling off period. There will generally be conveyancing work undertaken within the cooling off period by your conveyancer.
What about if you pull out in the cooling off period due to the property failing a building and pest clause? Surely then you don’t lose the 0.25%?
You are used tpo Vic finance and Build clauses - pretty rare in NSW that an agent /selling soli will accept same ta rolf
0.25% is seen to be a fair price to pay to the Vendor for them taking the property off the market for 5 days whilst the purchaser undertakes their due diligence within the cooling off period.
This is all contractual stuff. You won't automatically have access to a property you don't own. You will need to contract for this. It will also depend contract terms on whether 0.25% is payable or not. You could make the contract subject to building inspection so that if you pull out under this clause you will not lose the 0.25%. Also the cooling off penalty of 0.25% can be negotiated. I have had it removed on several occasions (before entering a contract). Conveyancing fees will depend on your contract with the conveyancing lawyer. They will hopefully be reviewing contracts and negotiating clauses and communicating with the vendor so expect some sort of fees.
My broker says it's possible if the valuer doesn't look at the place. It's selling for land value too so maybe the bank will be more likely to approve