deposit when first signing a contract

Viewing 9 posts - 1 through 9 (of 9 total)

karen.
Member
@karen.
Join Date: 2009
Post Count: 196
August 31, 2010 - 1:15 am
just a quick question – if the contract falls due to building/pest/finance is the seller legally allowed to keep that initial deposit … or does it always go back to the buyer?
thanks
Jacqui Middleton
Participant
@jacm
Join Date: 2009
Post Count: 2,539
August 31, 2010 - 1:57 am
According to this you forfeit the cash
http://www.domain.com.au/content/advertorial/misc/aussie/Pest-Inspection.pdf
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
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VIC Buyers' Agents for investors, home buyers & SMSFs.
JamesSampson
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@jamessampson
Join Date: 2010
Post Count: 54
August 31, 2010 - 2:56 am
If the contract fails you get back your deposit.
well thats been my experience anyway in QLD.
Ryan McLean
Participant
@ryan-mclean
Join Date: 2010
Post Count: 547
August 31, 2010 - 3:33 am
You can create clauses in the contract before you sign it to say that the contract is subject to building/pest inspection or even subject to you obtaining finance. These clauses allow you to get your deposit back if you get a bad inspection.
Get your solicitor to do this for you
Ryan McLean | On Property
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mccoz
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@mccoz
Join Date: 2005
Post Count: 67
August 31, 2010 - 3:35 am
You'll should only get back your deposit as a buyer, if you have specified in your Contract of Sale, that the purchase is subject to "building/pest/ finance" or whatever item. Even then. the purchaser needs to be specific in how he/she words these "conditions" of sale.

For example. simply " subject to finance" is very vague.
If for example, the sale was condition was worded eg "subject to finance being to the purchaser's satisfaction", this should be sufficient for the buyer to get his/her deposit back.
mccoz
LH
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@lh
Join Date: 2010
Post Count: 97
August 31, 2010 - 3:40 am
You should only lose funds in the case of cooling off and not if the security fails a condition.
Always get a good conveyancer/lawyer to look it over as conditions must be very specific and you can only pull out of a contract subject to an item failing its provisions.
You can also get vendors who might dispute a condition if they feel it's not a deterrent. It can depend on the vendor but I've never seen this happen personally.
karen.
Member
@karen.
Join Date: 2009
Post Count: 196
August 31, 2010 - 5:05 am
k thanks. just askin cos we have had another contract fall through due to finance on the house we are trying to sell. its costing us so much in advertising but the house keeps going under contract. then by the time the contract crashes its been a month and we are due again for another lot of advertising. was hoping to recoop some of my costs through the deposit they paid on the contract.
oh well was worth a thought!
Scott No Mates
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@scott-no-mates
Join Date: 2005
Post Count: 3,856
August 31, 2010 - 5:16 am
If the buyers are issued with a contract before making the offer and undertake their due diligence then they should be in a position to sign a S66W and waive any right to a cooling off period or other conditions they seem to be imposing.
SandraL
Member
@sandral
Join Date: 2010
Post Count: 45
September 5, 2010 - 3:50 am
Hi Karen,
It depends on the state the property is located in. If it's in NSW and a contract was signed without any 'subject to' clauses, then the seller keeps the deposit if the buyer doesn't settle.