All Topics / Help Needed! / Contract delay question

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  • Profile photo of amazingjefferyamazingjeffery
    Participant
    @amazingjeffery
    Join Date: 2010
    Post Count: 68

    Hi guys,
    Im after some much needed advice.  I bought my first house a fortnight ago, signed all the contracts and had a 35 day settlement.  The contract was fine we added special conditions of pest, building, pool, electrical and air con inspections.  All the conditions were accepted by the seller and I signed the contract.  The seller is in NSW and they are using there solicitor who is using a solicitor here in mount isa.  The contract was signed by the seller and and everything was going fine, until it was discovered they never signed the special conditions.  Now apparently the seller and there NSW solicitor have gone on holidays overseas and their mount isa solicitor cannot get a hold of them at all.

    My solicitor has advised them and myself that the contract is not actually binding until the special conditions are signed, thus pushing out the settlement date from when they sign them.  They are not due back in Oz until next week apparently and this has been going on for 2 weeks now.  So I had all the inspections done as I was under the impression the contract was signed and fine, the valuations were done and came back fine also. But the finance agent I am using said they cannot submit my FHOG application until they have a cited fully signed contract.  So basically the whole thing has hit a stand still for 3 weeks almost just because the seller's solicitors cannot get a hold of the seller and there solicitor (must be friends holidaying together).  Does my cooling off period now start 5 days after the contract is fully signed.  The banks have already done there evalauation and I have done my inspections so thats over 1k of overheads i would lose if I walked away from the deal. Just seems wrong they can draw the contract out like this, because its not like i dont want the house….so do i just have to put up with it?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Were the special conditions part of the contract? If so and they signed the front page then I would have thought you had a binding contract.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of FinSpecFinSpec
    Member
    @finspec
    Join Date: 2009
    Post Count: 137

    Much comes down to how the contract is written.  However generally speaking, special conditions are part of the actual contract, so once they sign it, it's all in.  However, if the special conditions are separate or require specific signing and it has not been signed, there is potentially scope for the contract itself to be binding, but the special conditions are not.

    Your solicitor should be able to give you more thorough advice on this.

    Profile photo of amazingjefferyamazingjeffery
    Participant
    @amazingjeffery
    Join Date: 2010
    Post Count: 68

    Thanks guys,
    The special conditions were annexures of the contract but had seperate areas on the bottom to be signed and werent.  My solicitor informed their lawyer that they didn't agree the contract was in effect yet as the contracts not completely signed.  But the pages that were signed were enough for my finance agent to get the valuation and finance unconditional. Only problem i cannot get my FHOG lodged as they say they require the complete contract with special conditions signed also. 

    Thing is without the special condition annexures the inspections would be a waste of time and if I wanted to get out of the contract if I found the house falling down and the owners didnt want to fix it, then i dont really have much to stand on.

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