contract negotiations clause for subject to DA and finance

I understand it is beneficial to negotiate a clause into the contract that the sale is subject to DA.  Does this cover if you wanted to remove a load bearing wall for example or restump a house?  and how much time does that buy you on top of your settlement period?

Similarly, with the subject to finance clause, how long do you have to confirm whether on not you have finance.  I would be using this clause as much to confirm finance as i would be to gain more time before actual settlement....

keen to hear your thoughts and explainations.
cheers

Hi Tiger

You can insert any condition into any contract however whether the vendor will accept it is a different matter.

If you intend to make application to obtain a DA you would want a very patient vendor or would want to be prepared to release part or all of you deposit to him irrespective of whether you proceeded or not.

As far as removing a load bearing wall or restumping a house to make a contract subject to you get getting confirmation from your surveyor, engineer etc or a price from a re-stumper then i wouldnt have thought this was particularly onerous on the vendor as long as time is of the essence.

Again depending on which State the property is located in 14-21 days would be the norm for a standard residential finance condition.

Cheers

Yours in Finance

Richard Taylor - richard@tayloredfinancialsolutions.com.au Tel: 07 3720 1888
Residential Mortgage Broker providing structured home loan advice for investors and owner occupiers all over Australia.
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