Having contract checked before making an offer on PPOR

Discussion in 'The Buying & Selling Process' started by Nina00, 13th Oct, 2021.

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  1. Nina00

    Nina00 Well-Known Member

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    I’ve never had a contract checked by a lawyer or conveyancer prior to making an offer as there’s no guarantee that my offer was going to be accepted. Is this what people actually do? I can imagine that it would become very expensive if you’re doing this a few times until you have an offer accepted.
    I have done this afterwards.
    Interested in your thoughts.
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    It's similar to building inspections - part of the cost of buying.

    Having said that, I suggest people to sit down with their lawyers to get them to explain what they are looking at etc - so learn from them.

    After the first few, we have tended to look at it ourselves and only consult if there is some part we don't understand or looks different form the others we have bought.

    The Y-man
     
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I was discussing this with a (WA) solicitor today and they offer pre-signing review as part of the deal provided you are usng them. I believe thats a great idea. I wouldnt signing without having a contract review. In Germany its mandatory. The solicitor (notary) submits the contract and then exchanges with their counterpart.. There is no arguement you didnt know what you agreed to.
     
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  4. Nina00

    Nina00 Well-Known Member

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    What is your offer isn’t accepted? How many reviews can you do?
     
  5. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Is it necessary to get contract reviewed before making an offer when buying a property?
     
  6. HenryC

    HenryC Well-Known Member

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    WA is slightly diff as most of the vendors/agents use REIWA standard Offer & Acceptance to create a binding agreement an, in the Eastern States, vendors will have to provide contract
    In most cases the buyer can add in a 7 day due diligence period once both parties agreed on the price, this will allow the purchaser's solicitor to go through all the terms and conditions
     
  7. HenryC

    HenryC Well-Known Member

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    I guess it is quite important as you are committing hundreds of thousands, it's worthwhile to spend a small portion to go through the contracts make sure there are no traps etc...
    Just remember the sale contract is drafted by the SELLER solicitor, for sure some of the terms and conditions will be leaning towards the seller instead of the buyer.
     
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  8. qak

    qak Well-Known Member

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    The last time we bought, we had 3 contracts reviewed before auction (including the one we bought) and the conveyancer just charged her normal fee - ie the first two were complimentary.
     
  9. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    Yes it varies considerably. Some charge for reviews immediately (anywhere from $100 - $400 +GST) but most do 1-3 complimentary reviews before they start charging. Some don't charge at all, but that is rare. We refer to a couple of solicitors where they don't charge for any contract reviews for our clients as aside from the fact we're sending them business, it's also because we don't waste their time with contracts we don't believe we can buy or that we don't genuinely and aggressively pursue which means their time isn't wasted. Also like using them as we know they work quickly and efficiently and have the time to handle our clients (many conveyancers get bogged down) and if I need a contract review done urgently I know it'll get done in a timely manner, which can make all the difference in this market. I guess an additional small perk of using a BA.

    I'd say if a buyer is getting 1-3 free reviews before being charged that's fine.

    - Andrew