Just wondering how I would go about with making two different offers to the Vendor.
1) $219,000 Cash, 30 day settlement
2) $239,000 Inclusive (of Stamp Duty and Legal Costs), Early Access to property for Improvements, 60 day settlement
Where can I find a template letter?
P.S. If you are wondering about the ‘inclusive of costs’ part I read it from the Siacci System:
“The $210,000 was actually inclusive of costs, that is, it included stamp duty and legal expenses.
The law simply states that when a title transfer from one person to another that stamp duty must be paid on that transfer. What the legislation does not stipulate is who must pay the stamp duty on transfer. So what we do is insert a clause into the contract that says that the vendor will pay the stamp duty on the transaction…
This is one of the clauses that we use for this purpose in our contracts
“The Vendor agrees to reimburse the purchaser the costs of stamp duty at settlement to an amount of not more than $XXXX.00″…
As you can see you are still paying for the stamp duty and legal fees but they are now included in your bank loan rather than coming out of your pocket upfront…
For valuation purposes it is important that you do not load the contract over and above the original asking price of the house”TerrywParticipant@terrywJoin Date: 2001Post Count: 16,190PamelaParticipant@pamela123Join Date: 2016Post Count: 1
Did you have any success with this?
I am also interested in this and I am in Adelaide.Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 12,018
Yep great in theory until the valuer sees the Seller is covering your acquisition costs and then deducts these from the valuation.
Lender then agrees to lend against purchase price of valuation whichever is the lower.
Yours in Finance
@terryw: I’m not ready to make an offer yet… Was just gathering information on how to proceed with the execution. I’ll probably have to contact the agent to find out more information about what the vendor’s needs are and tailor an offer to suit them. All I have is the form behind the property brochure, but it only gives you one option for offer. If I was to proceed with an offer, would attaching a cheque and date e.g. valid till 5pm Friday, be a good idea?
@pamela: I am just starting out, and have not done this before.
@richard Taylor: Doesn’t the Valuer only see the purchase price, and the front page of the contract? How would he/she know that the Vendor is reimbursing you for the cost of stamp duty and legal costs?Ethan TimorParticipant@ethantimorJoin Date: 2016Post Count: 282
From my personal experience, vendors prefer simple arrangements (KISS style). Once you introduce things they never heard before (such as them paying the stamp duty), you might find more resistance than it’s worth.