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Interstate buyer (in Qld) with no inspection clause

Discussion in 'The Buying & Selling Process' started by D&J, 4th Apr, 2016.

  1. D&J

    D&J Active Member

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    Hi everyone,

    I've been in negotiations with the agent/vendor of a property in Qld which I have not yet seen.

    We have agreed on the price BUT the vendor is not happy with the subject to inspection clause I originally put in the special conditions/clause part of the contract. I had the following clauses:

    - Subject to inspection
    - Subject to B&P
    - Subject to Finance

    Now, I am thinking of removing the inspection clause and amending the other clauses to something along the lines of the following:

    - Subject to B&P to my satisfaction
    - Subject to Finance to my satisfaction

    I would like to then inspect the property and use either the B&P or Finance clause as a way out if possible (which I hope I don't have to use of course).

    1. What are peoples thoughts on this? Is this an appropriate way to cover myself or are there any other recommendations on how to do this?
    2. Can anyone suggest proper wording for the above clauses?
    3. Does the agent have to let me in to come and inspect the property if I have removed the inspection clause?

    Thanks in advance!
     
  2. MsAli

    MsAli Well-Known Member Premium Member

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    Sounds about right. You could always flyup to view / go along with the pest guy and then crash the contract depending on B and P
     
  3. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi @D&J

    If you don't have either a Building and Pest clause (and you attend the inspection) or a special condition giving you the right to a viewing, then no, the agent doesn't have to let you in. Speak to your conveyancer about appropriate wording for your clauses in your contract :)
     
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  4. Marg4000

    Marg4000 Well-Known Member

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    To me, even thinking of putting in the inspection clause means you are not fully committed to buying the property.

    You will need a cause to crash the contract under B&P conditions. The vendor can ask to see evidence. Likewise with finance, you will have to show you have applied and been rejected which may have future impacts.

    Give the cost of property, you may be best served to book a return flight and do an inspection before signing a contract.
    Marg
     
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  5. See Change

    See Change Timing Lord Premium Member

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    when ever we've bought interstate ( unless we've had someone we trust inspect the property for us ( twice ) ) we've had an inspection clause put in ., though I'd make the time frame the same as the B& P .

    You do have a cooling off period ( but ? loose an amount if you walk on the basis of that ) n which youcan do an inspection .

    If they're not happy with inspection clause , I've got to wonder why .

    Alternative is to fly up quickly while you're negotiating . Is it vacant ? tenant in situ , OO ?

    There are lots of reasons outside B&P failure which would put me off buying a property .

    Cliff
     
  6. D&J

    D&J Active Member

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    I'm 100% committed. Even with the clause I need to pay for flights which is a sunk cost if I pull out.

    Ive done my due diligence and I want to purchase, I just want to know I am protecting myself as much as I can from the unexpected.
     
  7. D&J

    D&J Active Member

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    This is interesting as it at odds with what I've read from RPI's posts. I'll see what my solicitor says.

    Appreciate you and everyone taking the time out to respond.
     
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  8. Dmarkw

    Dmarkw Well-Known Member

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    Were the other posts in relation to QLD law?

    My understanding is that issues must be significant (e.g. structural) to pullout on B&P, should the vendor dispute this
     
  9. Bran

    Bran Well-Known Member

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    Who determines if the issues are significant? How would they define significant?
     
  10. Dmarkw

    Dmarkw Well-Known Member

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    You can get out during cooling off without grounds, but may incur 0.25% penalty on sales price if vendor requests
     
  11. SmashedEconomy

    SmashedEconomy Active Member

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    In Qld no it does not. You can pull out on a B&P report for nothing more than your "dissatisfaction", no matter how inconsequential the issue is. Its why in Qld, vendors want it out of the way ASAP. If buyers dont get it done within 7 days on my contracts, I ping them
    .
     
  12. wylie

    wylie Moderator Staff Member

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    My mum used to always say to make it very clear, a solicitor will use appropriate wording to cover the purchaser, and to always put in that the vendor is entitled to a copy of the full report should the purchaser rescind due to a B&P.
     
  13. wylie

    wylie Moderator Staff Member

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    I don't think this is correct. I believe it depends very much on how the clause is worded. This is too grey.
     
  14. SmashedEconomy

    SmashedEconomy Active Member

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    You'd be wrong as that clause is always worded the same way - its part of the standard Qld REIQ contract. I have never heard of a legal dispute over it because it really only demands the buyer be "satisfied", which is a broad unspecific meaning..

    Bear in mind, people arent going to pull out over really minor issues. As a seller, I myself delete that clause and put in something more concrete to tighten it up so that people cannot exit too easily.
     
  15. R377

    R377 Well-Known Member

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    I bought one in manly west subject to me viewing it as it looked like some photos were hiding somehting.

    When i got up there, thoughts were confirmed and i crashed the contract. the house itself was faultless as far as inspection went.

    If you can get to qld say by the w.e there should be no probs on the viewing. If it was a week+ then i could see vendors view
     
  16. wylie

    wylie Moderator Staff Member

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    I don't think I am wrong (as you so nicely put it o_O). I have "enjoyed" a dispute myself over such a clause. And you are right that is a standard clause, but I would not be using a standard clause if I was wanting to get out via a B&P. I would be using a clause drawn up by a solicitor to cover my butt.

    Because it is such a "broad unspecific meaning" is why that clause is not good enough for me (if I wanted to get a B&P). I have never bought with a B&P but I have sold and had that general "broad unspecific meaning" catch me out. I ended up giving up some money (only $2K) because the clause wasn't good enough, but also because we wanted to buy the house with the missing ant caps - see below) and there were others waiting to snatch it if we said no to the $2K reduction and the purchaser crashed the contract. We knew they loved our house and wouldn't do that, but didn't want to risk losing a fantastic opportunity over a $2K dispute, so we gave in.

    And people DO pull out over really minor issues. We bought a house once when the purchaser pulled out because there were no ant caps. We added them for about $50, a car jack and a couple of hours.

    What I do agree with you is your last sentence only.