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Property Negotiation & Contract Terms....

Discussion in 'The Buying & Selling Process' started by bestor Investor92, 12th Jan, 2016.

  1. bestor Investor92

    bestor Investor92 Member

    Joined:
    11th Jan, 2016
    Posts:
    11
    Location:
    Sydney
    H Team,

    I have bought a few properties, but have never been savvy in any of the negotiation side. researching has bridged a lot of what to look for: vendor motives, agent on side, special conditions etc. I am wondering if anyone has experience around what to do once those terms are negotiated and accepted by the vendor/agent. Specifically, how do these terms get reflected in the contract, is it the vendor's solicitor or mine? do they just need to reflect what was agreed to, how does it work & what do we need to know?

    some conditions to make it easier:
    subject to vacant possession
    subject to P & B (some states)
    subject to finance (some states)
    advertising for rent before settlement/ access to advertising photos/ open for tenant inspection prior to settlement

    Thanks all!!
     
  2. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    516
    Location:
    Sydney
    Hi Bestor and welcome to PC

    The only term or condition that will require to be written up as part of the offer (or during the cooling off period between solicitors, depending on the situation) is the last one pertaining to prior access. I am assuming you're referring to NSW here, as you're from Sydney.
    As for the others:
    Vacant possession is noted on the front page of the contract and marked as such or is either Subject to existing tenancies. If neither box is marked then VACANT POSSESSION is assumed, as it's in capitals (and therefore takes precedence).

    In NSW once you enter into a cooling off period for a property, you reserve the right to rescind from the contract however you will forfeit your 0.25% deposit (in the majority of cases) if you change your mind for any reason. This includes a bad b/p or failure to obtain finance. Unlike other states (eg QLD) you can not generally make the contract "subject to" finance terms or otherwise without penalty.

    Best to speak with your conveyancer or solicitor once you do get price and other terms accepted, as it is important to ensure you have sufficient time as cool off periods can be negotiated. Hope that helps.
     
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  3. Numbers_man_numbers

    Numbers_man_numbers Member

    Joined:
    11th Jan, 2016
    Posts:
    17
    Location:
    Sydney
    ..
    Hi,

    I love your posts, very informative. I have strange situation,

    I am looking at a contract that has the VACANT POSSESSION ticked/crossed and the subject to existing tenancies is not ticked/crossed. But the contract has a lease attached to it that ends on in 10 months.

    Do you think its a mistake?

    Cheers
     
  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,225
    Location:
    NSW
    That is either a mistake OR the tenant has agreed to break the lease early in favour of giving the incoming purchaser vacant possession. Or the settlement is in 300 days not the standard 42 days. Check the front page of the contract. Either way you'll need to seek clarification before signing the contract.
     
    Jacque likes this.
  5. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    516
    Location:
    Sydney
    What Prop said :)
    Sounds like the property contract could have been drawn up prior to the commencement of the current lease. Best of luck with the sale and keep us posted as to how it goes.