Price adjustment after the contract signed

Discussion in 'The Buying & Selling Process' started by PropertyInsight, 12th Oct, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. PropertyInsight

    PropertyInsight Well-Known Member

    Joined:
    22nd Jun, 2017
    Posts:
    332
    Location:
    Australia
    After the contract signed for an IP in Brisbane, I successfully negotiated price reduction due to the property problems findings. Can the price is adjusted on the settlement date without the contract changes or must be adjusted on the contract?
     
    PropertyInsight, 12th Oct, 2017
    #1
  2. Toby

    Toby Well-Known Member

    Joined:
    19th Jun, 2017
    Posts:
    144
    Location:
    Melbourne
    Yes it can be, this recently happened for me. We negotiated the adjustments due to B&P and the solicitors settled the adjustments, contract price remained the same.
     
    Toby, 12th Oct, 2017
    #2
    Big Will likes this.
  3. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,517
    Location:
    Melbourne, Australia
    You can redraw contracts again but it is easier and in my eyes better to just leave it and have the adjustment at settlement.

    For example you can use the funds to 'fix' your problems through borrowed money rather than using your own funds.

    If you go with the adjustment the excess/money left over (solicitors will take their fees) will be transferred to your nominated account. Other adjustments will be things like water/council rates etc.
     
    Big Will, 12th Oct, 2017
    #3
  4. PropertyInsight

    PropertyInsight Well-Known Member

    Joined:
    22nd Jun, 2017
    Posts:
    332
    Location:
    Australia
    Talked to my lender and was advised that loan approval is based on original contract. So, I do not need to process loan application with price change again. All good!
     
    PropertyInsight, 12th Oct, 2017
    #4
  5. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,517
    Location:
    Melbourne, Australia
    I wouldn't of talked to them but if you did change the contracts then you would need to provide them with the new contract.
     
    Big Will, 12th Oct, 2017
    #5
    PropertyInsight likes this.
  6. PropertyInsight

    PropertyInsight Well-Known Member

    Joined:
    22nd Jun, 2017
    Posts:
    332
    Location:
    Australia
    Thanks Will.
     
    PropertyInsight, 12th Oct, 2017
    #6
Client Directed Portfolio Super your way

We provide our clients with the opportunity to select their own investments from a wide range of ASX listed securities. We provide the research to ensure your selections will achieve the goals. This is the value of advice.