Favourite 'Subject to' clauses

Discussion in 'The Buying & Selling Process' started by property world, 30th Oct, 2018.

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  1. property world

    property world Well-Known Member

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    Name your favourite 'subject to' clauses when buying existing property and why?
     
    property world, 30th Oct, 2018
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  2. The Y-man

    The Y-man Moderator Staff Member

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    My favorite is: "none" when buying or selling.....

    The Y-man
     
    The Y-man, 30th Oct, 2018
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  3. property world

    property world Well-Known Member

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    ie: Subject to building and pest inspection ect

    @The Y-man
     
    property world, 31st Oct, 2018
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Subject to "Vendor hosting a barbecue at the property at 3pm on the 1st anniversary of the sale of the property" :D

    You want to see how attentive their lawyers/conveyancers are with regards to reading the agreement and any special terms.
     
    Last edited: 31st Oct, 2018
    Scott No Mates, 31st Oct, 2018
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  5. Brady

    Brady Well-Known Member

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    I don't believe I've purchase property with a clause yet... besides access to the property for B&P (which was done during cooling off)
     
    Brady, 31st Oct, 2018
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  6. The Y-man

    The Y-man Moderator Staff Member

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    Sorry - just realised you asked "and why".

    While it is not something you should do in the first couple of purchases, it is my favorite to have no conditions (unconditional). As I have written elsewhere, I believe as a buyer (and definitely as a seller) that unconditional contracts are the most attractive to sellers - even at a lower price.

    What it does mean is that (and this is *VERY* important):
    1. you have already done your building and pest inspection BEFORE making the offer
    2. you have plan B and C ready in case your finance is not approved
    Condition 2 is probably the hardest for those just starting off - and therefore not feasible for many.... and do NOT rely simply on a pre-approval. By plan B I am saying you need enough in other assets or in an offset/redraw to settle or bank of relatives&family to settle if all goes bad.

    But it is my favorite, and by far the one that gives me the most bargaining power.

    The Y-man
     
    The Y-man, 31st Oct, 2018
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  7. property world

    property world Well-Known Member

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    How do you do the Building and pest inspection before making the offer? Just a visual? Doesnt sound like it would stack up compared to a reputable build and pest inspector.

    I have heard people say the offer is subject to a time period of only 24 hours ect ?
     
    property world, 31st Oct, 2018
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  8. The Y-man

    The Y-man Moderator Staff Member

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    It is quite common (Melb in particular where people want to buy at auction and need to get the inspection done prior). You just let the selling agent know you are getting a B&P done, and also let the B&P person know the agent contact details. They'll sort out a mutually convenient time.

    The obvious risk is that if your offer is not accepted, you forfeit the inspection fee but my theory is that you will make it up on the money you save when you finally buy, and you also avoid all he hassle and lost time of crashing contracts and legal argy bargy if you find something wrong. Dong prior means you can get the report, figure out how much to fix (if it is worth fixing) and put in your offer.

    The Y-man
     
    The Y-man, 31st Oct, 2018
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  9. The Y-man

    The Y-man Moderator Staff Member

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    In Victoria, your offer is valid for 3 business days (I think) on the standard REIV contract, unless otherwise stated.

    The Y-man
     
    The Y-man, 31st Oct, 2018
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  10. property world

    property world Well-Known Member

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    'Subject to finance'
     
    property world, 4th Nov, 2018
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  11. neK

    neK Well-Known Member

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    In NSW (Sydney in particular), putting "subject to" is a good way to have your contract ignored. Get your sht together if you want to play - otherwise go elsewhere. Other states are different of course. Subject to in QLD seems pretty common and people negotiate afterwards.
     
    neK, 4th Nov, 2018
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  12. 36_

    36_ New Member

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    'Subject to speaking with my partner'
     
    36_, 18th Feb, 2019
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  13. Trainee

    Trainee Well-Known Member

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    Op, each state does things differently. Put in a subject to finance clause in nsw and you wont get far.
     
    Trainee, 18th Feb, 2019
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  14. Sackie

    Sackie Well-Known Member

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    If the property is to be developed then I usually always have:

    1. Subject to 7 business days development DD which I am entirely satisfied with
    2. Sometimes I have subject to Subdivision approval. I let them know if they accept this clause then my offer will be a little more.
     
    Sackie, 18th Feb, 2019
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  15. kierank

    kierank Well-Known Member

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    As a buyer, I put in the Contract as many Special Conditions as I can think of, typically 6+
    (some are really ‘red herrings’ ):D.

    During negotiations, should the seller cross out one of my SCs, I lower my price (letting them know they that they have two options, one with SC with higher price and the other without the SC at a lower price).

    It tends to stop the going backwards and forwards.

    It works best in a buyer’s market but I have used it in a seller’s market as well.

    If the seller entertains such an offer, I know they don’t have a stack of buyers queueing up ;).

    If they don’t come back to me, time to move on :eek:.
     
    kierank, 18th Feb, 2019
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  16. Brady

    Brady Well-Known Member

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    I cut straight to the point do my DD beforehand and go no conditions with price I want to pay :)
     
    Brady, 18th Feb, 2019
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  17. Sackie

    Sackie Well-Known Member

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    You shifty daawg you :p

    I've gotten away with all sorts of clauses, especially when their conveyancer is an amateur. Not all conveyancers are equal thats for sure . But yeah really depends on where you're buying and the market you're buying into as well.
     
    Sackie, 18th Feb, 2019
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  18. kierank

    kierank Well-Known Member

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    So do I but I am always happy to pay less if I can “manipulate” the buyer :D.

    All part of the dance we love to do!!!
     
    kierank, 18th Feb, 2019
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  19. Sackie

    Sackie Well-Known Member

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    Be careful there. .soon you'll have PCs ethics police on your tail :p:D
     
    Sackie, 18th Feb, 2019
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  20. kierank

    kierank Well-Known Member

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    As long as you don’t call me NB ;)
     
    kierank, 18th Feb, 2019
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