NSW Preparing to make verbal offer (term & condition), what the agent might asked for

Hi Experts !!!

I'm so nervous in making my first offer, which am about to do via phone sometimes tomorrow or Friday.

I'm currently waiting for my solicitor to go through the CoS for the property and if the feedback is positive, I will make the phone call.

I'm sure (as usual) he will be advising me under what term and condition should that offer be accompanied with, but I thought I also want to hear from you on what you think I should be prepared of .. particularly what sort of questions the agent might throw at me, once I make that verbal offer.

Please note that I have not done any Building & Pest Inspection nor any Strata Inspection at this point. Finance wise, I think it should be no problem in terms of valuation and approval.

The property will be sold via normal sale (not Auction) and it's NSW and it's not in hot market.

I understand that usually the conditional offer will be accompanied by:

• x days cooling-off period (normally what is X in NSW)
• Subject to Building & Pest Inspection
• Subject to Strata Inspection report

I can only think of those 3 conditions; if those 3 conditions are not met, meaning I be able to get my 0.5% deposit back? I got a feeling the answer is NO, but I won't be bound to the sale of the property if I decided to pull out, is this correct?

I LOOK FORWARD HEARING FROM YOU

 

When you get a 5 x business day cool off you pay a 0.25% deposit and have no need of 'subject to anything' clauses. In the 5 x days you can withdraw for any reason you like. You don't even have to give a reason. In any event the 0.25% is forfeited to the vendor if you rescind.

 

Right ... so if I want to buy more time and the property is not in hot market, I maybe able to get away with negotiating the cooling off period to say 10 business days? so more time to do due diligence?

so, yeah .. basically there's no point of stating subject to building pest, strata etc ... the most important is the negotiation of cooling off period (buy more time for due diligence) .. because either we pull out regardless whatever reason, 0.25% deposit is goneski

@Propertunity thanks for correcting the deposit %

 

Do you need a finance clause?
That's of far more use than a cooling off period. At least in QLD to the best of my knowledge and experience, cooling off you lose your deposit, B/P and finance you don't. Haven't paid your deposit? Nothing to lose.

 

To take it off the market, I will need to put down the 0.25% deposit & sign written contract .. correct me if am wrong, NSW experts?

But if I decided to pull out within the agreed x business days, meaning that I will lose the 0.25% deposit but am not obliged or have to purchase the property.

I think regardless of be that Finance, B/P or whatever reason ... if I pull out, I lose the 0.25% deposit.

I guess that 0.25% penalty is to compensate the loss (time) when the marketing for that property is pulled out and Open Inspection cancelled.

Is my understanding above is accurate?

 

All correct @David Chang
But the 0.25% is to compensate the vendor in exchange for giving you total control for 5 days. Marketing does not get pulled and Open homes need not be cancelled.

 

Yeah, opens etc won't be cancelled until exchange or unconditional, I would instruct agent till unconditional you are still looking for buyer.

Do your strata checks in the cooling off, do B&P if your doing one in cooling off, I prefer to have subject to finance and B&P, if vendor dismisses this, exchange once all checks are done or make sure they are done in cooling off, remember, most sellers will want you to buy if they accept offer.