I’m in Qld and want to sign a contract on a property with the only condition being ‘subject to finance’ i.e. minus a property inspection clause – part of negotiating a lower price on a highset house with undersized bearers. A building friend has already looked at it and believes the undersized beams won’t be an issue structurally.
One REA has told me that if I change my mind about the property and don’t want to proceed, I just have to say I didn’t find finance I was satisfied with. (the finance clause states “buyer’s choice”.
What I am wondering is does the agent or the vendor have a legal right to see any application I have made to get finance. Or am I within my rights to just state I wasn’t satisfied with some aspect of the finance sought i.e. rate of interest.
Bruce
Mooloolaba, QldI am not posotive about this, but i do think that no one has the right to c these papers, but check with your accountant or legal advisor.
Karan
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*****hi bruce
i’m with karan on this one, you havean out clause which means you can nulify the contract up until the date specified in the contract.
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
I usually have a clause “subject to finance approval from XXXX bank”. That way you are not oblidged to find finance just anywhere.
If you have a good bank they will do a letter for you to say finance wasn’t approved, give that to the REA.
“If you have a good bank they will do a letter for you to say finance wasn’t approved, give that to the REA.”
Unless stipulated in the purchase agreement, you do not need to divulge any documents stating why you declined – subject to financing.
Your rights depend on the specific wording. Therefore the document should be prepared/reviewed by a qualified lawyer – risk management.
“minus a property inspection clause – part of negotiating a lower price on a highset house with undersized bearers.”
It is never worthwhile saving a few dollars when the liability/risk exceeds the cost saving.
“A building friend has already looked at it and believes the undersized beams won’t be an issue structurally.”
Is your friend willing to accept liability if the beams are not structurally sound or do not meet building codes – the next buyer is not likely to discount a structural inspection.
— Michael
Michael, I have had an architect and a builder (both friends) inspect the property, and am eyes open re undersized bearers, and repair costs.
The only issue that remains contentious is my interest in disposing of the property down the track. Most buyers would be thrown by something like undesized bearers, asking for the problem to be fixed, the price to be discounted, or would pull out of the contract.
I have considered risk/reward carefully here, offsetting the bearer problem with the price I am paying and the future of this ‘hot’ suburb.
Bruce
Mooloolaba, QldNo privacy laws exist for a reason. You have an out, but make sure you add, re bank X as someone else said. I normally list my bank and you have a limited time to do this in.
So long as you are well informed, friendshmmn? there is no friend in business, dont short cut. No matter how good the friendship, things like this can be a killer.
pay the 400 or whatever for pest and building, it takes days for this, often less time than finance. Seek independant advice, but thank your friend.
My opinion anyhow.
cheers
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