Hi, I made an offer last saturday to the agent stating that my offer is subject to pest and building inspection. The agent advised that my offer have been accepted on the same date after signing the sales contract and authority to exchange with cooling of period for 8 days leaving a deposit of $905., as requested by the agent. She didn't let me write down on the documents the subject to pest and building inspection as she mentioned that is not right to modify the contract and that is why the cooling of period is on place, however she informed that I will loose the $905 if I do not got ahead with the purchasing even if the property has termites. Is this correct? Next time before signing and giving a deposit is it better just to do the building n pest inspection before so that way I just loose 435 instead of $1340?. She also mentioned that tomorrow first thing in the morning I should give her my lawyer details before 12 pm so she can forward the documents as she can not keep the documents as this is by law. I would prefer to do the P&B inspection 1st as if I contacted a lawyer to do the purchasing paper work and if I do not go ahead with the property them I will be losing the above plus the lawyer fees… Could i please have an advise above above. Many Thanks
Hi Jessica
Best to have your solicitor look over the contract before committing to anything.
Agents, particularly in the Sydney market (not sure if that's where you're purchasing) can be quite pushy in getting buyers to sign off on unrealistic cooling off periods. I had one recently where they signed off on a 5 day cooling off period and still had to arrange finance and building/pest inspections. We managed to get the finance sorted – but a little extra time would have been nice
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
That is strange because they should ask you for your solicitor details when you are signing the COS as they need to write this on the COS.
You have 2 options. Option one is to put in the verbal offer and once they accept do not sign the COS and immediately order the B & P Inspection and have your solicitor/conveyancer review the COS. Once this is satsfactory then you can sign the COS. The benefit of this option is that if the B & P or upon review of the COS is not satisfactory then you do not lose your deposit. The disadvantage is that you may get gazumped.
Option 2 is to sign the COS, and then have your solicitor review the COS and the B & P inspection. The benefit of this is that you will not be gazumped however the disadvantage is that you will lose your holding deposit if any of the above is not satisfactory.
There is not right or wrong option – its comes down to a number of things such as how good the deal is, how confident you are the property is in the expected state, how many other potential buyers there are, etc.
Regards
Shahin
TheFinanceShop | Elite Property Finance
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I always get my solicitor to read the contract before I sign it. The solicitor can add in the B&P clause as a special condition. With the correct wording, you can get every cent of your money back if the result of the B&P displeases you.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Of course you have the right to modify the contract and you should not be taking legal advice from a real estate agent, especially one who acts for the otherside. You have just been conned..
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks so much for your advice to you all. Much appreciated
You should always make sure that all clauses are included in the contract. Frankly it was not up to the agent to not put the clauses up. There job is to put up the offer as you request.
Jacqui is right if you have any doubts get your solicitor to check the contract twice. I am sure that he or she would have insisted that the clauses have been included. If you have signed knowing that the clauses you wanted were not on the contract then there is not much you can do.
Nigel Kibel | Property Know How
http://propertyknowhow.com.au
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