Newbie Question: what happens once your offer is accepted?

Discussion in 'The Buying & Selling Process' started by SAIL01, 6th Nov, 2019.

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  1. SAIL01

    SAIL01 Member

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    Hi all,

    I want to cover off a really basic question: what are the next steps once your offer is accepted? What clauses around settlement etc are worth negotiating/using as sweeteners?

    eg:
    1. Submit offer
    2. Offer accepted
    3. Organise pest/building inspections (Etc, I have no idea).

    Can you still get sharked during this time etc?

    If there are threads addressing this please let me know.

    Thanks in advance!
     
    Lindsay_W likes this.
  2. Trainee

    Trainee Well-Known Member

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    Is this nsw? Each state is different.
     
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  3. SAIL01

    SAIL01 Member

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    First thing learned! The property in question is QLD. Do states differ hugely in this regard or minor things?
     
  4. Trainee

    Trainee Well-Known Member

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    Dont think about minor or major, just assume everything is different. First thing is to get a solicitor in the state and ask them what the process is.
     
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  5. Lindsay_W

    Lindsay_W Well-Known Member

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    Once the offer is accepted it's *usually* too late to negotiate on settlement time frames etc as these would've (or should've) been included in the offer...
    eg offer would be $x subject to 21 day finance clause, 14 day building and pest, and 42 day settlement
    Not sure what you mean by "getting sharked" can you explain?
    As Trainee mentioned, best to get a solicitor asap
    Edit* you will be able to negotiate if no time frames have been agreed yet and hasn't progressed to a signed contract
     
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  6. SAIL01

    SAIL01 Member

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    Thanks for this!

    Getting sharked - can someone come in and offer more and you can be rejected by the owner even though you have a contract?
     
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  7. SAIL01

    SAIL01 Member

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    Next part of the question is what are the common time frames people use on finance, building and pest and settlement?

    If I have pre-approval for a loan how long can I expect a loan to go through?
     
  8. Lindsay_W

    Lindsay_W Well-Known Member

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    Ahh ok, generally no that can't happen once you've got the contract.
    Although certain things can happen that can allow the seller to revoke the contract ie. you can't make the finance clause or settlement clause etc but I'm not a solicitor so best you ask them how likely those things happen.
    Or hopefully someone more across the legal side of things will answer here for you.
     
  9. Lindsay_W

    Lindsay_W Well-Known Member

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    Finance clause is generally 14 - 21 days
    Settlement 30 - 42 days (30 days doesn't leave much room for delays, so go for a bit longer)
    Building and pest inspections 7 - 14 days
    Really depends on the lender, most pre-approvals aren't credit assessed
    Which lender?
     
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  10. The Y-man

    The Y-man Moderator Staff Member

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    We try to do it the other way:
    1. Do pest/building inspections
    2. check with finance
    3. check documents (run past your lawyer if unsure)
    4. make offer
    5. if not accepted, negotiate further or walk
    6. if accepted, organise insurance, legals, finance etc
    The Y-man
     
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  11. SAIL01

    SAIL01 Member

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    Thanks for your response. How do you get access to do pest/building inspections prior to getting a contract?
     
  12. The Y-man

    The Y-man Moderator Staff Member

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    Agents and the inspectors do this all the time. When you book the inspection, just let them know it's up for sale, and they will need to arrange with the selling agent for access. They'll handle it from there (don't be surprised if the inspector knows the agent and vice-versa)

    The Y-man
     
  13. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    You engage the contractor to provide these usually prior to making a offer, maybe subject to. The vendor and agent dont hand you a copy
     
  14. CAM13

    CAM13 New Member

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    You want to have everything ready to go BEFORE you make an offer - including a building/pest inspection you're happy with, deposit ready and available (be aware that you can't necessarily just transfer a large sum of money and may need to pre-warn your bank), pre-approval of mortgage, an understanding of what conditions you are making the offer subject to (ie. inclusion of any chattels/timeframe of settlement), and what your negotiation limits are.

    Once the offer is accepted you sign the paperwork and begin the settlement process via your conveyancer/settlement agent (you can DIY but highly recommend so you don't miss anything, at the end of the day it's a relatively small cost). Good luck!
     
    Last edited by a moderator: 27th Sep, 2021
  15. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    And access to a deposit and paying the duty.....Easily overlooked and a issue at the last moment. Its not easy to move $50K+ etc even with 24/7 online banking. All sorts of security limits can hamper movement of money. Dont forget a bank cheque can still be a simple way to do this and despite its fee it can be easier and safer than transfers

    One of the benefits of using a solicitor is their trust account. Its insured against fraud etc by the Fidelity Fund. Conveyancers dont have anything like it. Its reason why moving money several days ahead of time need not be a concern.
     
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  16. Trainee

    Trainee Well-Known Member

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    A bit of preparation can help a lot. Bring all your id and expect to go to a bank branch to do the transfers.
     
  17. RS Gumby

    RS Gumby Well-Known Member

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    There is a cooling off period if things don't look great
     
  18. frank22

    frank22 Well-Known Member

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    My question is relating to the Building inspection and deposit in the contract. Under special conditions ,should I state "This contract is subject to and conditional upon a satisfactory building inspection " .within 14 days. If for example I find rising damp and wish to terminate ,will i be able to do so? even though it is not a structural defect . Is that permitted ?
    Secondly. After paying $500 when the initial offer is made . When should I pay the balance of the 10% deposit ?
     
  19. The Y-man

    The Y-man Moderator Staff Member

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    Get a lawyer to word it for you.

    For example, the wording you gave could be interpreted as "Satisfactory for the seller"!! :eek::eek:

    The Y-man
     
  20. Mark F

    Mark F Well-Known Member

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    Y mans method is best - get the inspections done and then you know what you are actually buying. This gets rid of much of the uncertainty. The ACT system where the vendor provides an up to date pest, building and thermal rating reports plus title search (paid for by the purchaser on settlement) makes it easy to put in an appropriate bid very quickly. I read the reports and then do a thorough check myself to confirm the reports.

    You are only safe from sharks once the contract is signed by both parties and the deposit paid.

    Also think carefully about what is included or not - eg curtains and blinds, etc. Some things you may want to keep,others you will want gone.
     

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