Good evening brains trust. I have a question I hope you can help me with.
Once you sign a contract for a property which is subject to finance (and no actual date or time period is stated on the contract), when does the full deposit become payable in Victoria? The agent seems to have missed this section on the contract, so it's actually blank.
He is pushing for the whole 10% deposit straight away, and the loan is not even ye approved. In previous purchases, I have paid a smaller deposit, then the balance of the deposit once finance is approved, so was thinking this is standard? But perhaps I was wrong.
Also, if finance is not approved, and the sale falls through, how much (if any) can the RE withhold, and within what sort of time frame must they repay the deposit?
Thanks.
If the LOANS section of the Particulars of Sale section, on page 3 of Part 1 of the standard Contract of Sale of Real Estate has not been filled out, then you don't have a Contract that is subject to finance.
And paying the full 10% now places you in danger of the Contract going 'unconditional' at the end of the cooling off period, not the 'subject to' period.
As with your previous experience, when the LOANS section is completed correctly, you normally pay a small holding deposit now and the remainder of the 10% deposit after the 'subject to' period runs out.
I suggest you read clause 14.1 of the Contract (on page 7), i.e. 'All money must be immediately refunded to the purchaser if the contract is ended'.
I've been doing this for awhile now and always get my solicitor to look over every Contract before I authorise it. My suggestion is you do the same.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
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