[NSW] 'Unconditional' offer with cooling off

Discussion in 'The Buying & Selling Process' started by Norms, 15th Nov, 2019.

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  1. Norms

    Norms New Member

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    Hi all,

    I'm planning to place an offer for a property without any 'subject to' clauses but still want to maintain my cooling off period so I can get a strata report and building inspection done during that time.

    In NSW, does an 'unconditional' offer assume the cooling off period is waived or are they separate like some other states where a 66W certificate has to be signed. How should I best word my offer to the agent that my offer isn't subject to any conditions e.g. finance, B&P, while still maintaining the cooling off period (unconditional sounds better)?

    Any advice appreciated, thanks!
     
  2. Morgs

    Morgs Well-Known Member Business Member

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    Unconditional would mean 66w is signed. Normal contract in NSW has a cooling off period but you're liable for 0.25% if you need to exercise the cooling off.

    Your conveyencer should be able to do this for you. Keep in mind nothing is at all binding until you've exchanged contracts so "wording" an offer won't tie you any commitment.

    Contracts and deposits
     
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  3. Propertunity

    Propertunity Well-Known Member

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    There usually are no "subject to" clauses used in NSW because there is a statutory 5 business day cooling off period (COP). You just make your offer $xx and strike out the occasional clause you don't like (eg a release of deposit clause). It would be normal practice to get a contract review done by a solicitor or conveyancer prior to signing the contract.

    The COP you can use to get strata report, P&B report, formal finance approval, etc whatever you like. Your 0.25% deposit is at risk and will go to the vendor if you do not proceed. But it does give you total control over the property for 5 business days or 10 days if you negotiate more COP as part of your offer.
     
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  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Depends on your definition of unconditional.

    A contract can be entered into without any conditions yet the cooling off period still apply
     
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Is a contract a contract if there are no conditions?
     
  6. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There would be terms but not 'subject to...' type terms.
     

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