Check the contract

Posted on.
By Watkins Tapsell.

It’s definitely been a busy start to the year in property and it is unbelievable that we are already half way through April. The week prior to Easter saw amazing results at Auction dubbed “Super Saturday by the media”. In our office alone we had one property sell for $2,600,000.00 when the Vendors were expecting $2,000,000.00 with 9 people requesting amendments to the contract prior to the auction. Another property in Sutherland going to auction also had 7 different parties requesting amendments to the contract prior to auction. This activity is similar to a number of years ago when we had a property boom. With interest rates predicted to again be reduced in the coming months, I think we can be safe to say the property market is strong and not showing any signs of slowing down.

If you are thinking of selling or purchasing a property we encourage you to be organised, to know what you are buying and to have your contract checked.

If you are purchasing a property having a pre-approval with your bank/mortgage broker ready to go so that as soon as you find your dream property you can contact our office and we can assist you with the process of reviewing the contract prior to exchange.

Once you are locked into a contract to purchase even if it is a cooling off period the Vendor/owner does not have to agree to any requests for changes to the contract that you may have.

If you contact our office prior to an auction or exchange under cooling off period we can help you to negotiate a number of things that may be of benefit to you including the following:

• Reduced deposit payable on exchange.

• Reduced or delayed settlement.

• Access to the property prior to settlement.

• Reduced fees payable if any delays occur

All requests we make are obviously subject to the Vendor agreeing however if we do not ask we do not receive.

We can also ensure what you are buying is reflected in the contract.

Wardrobe Doors – Believe it or not I have had a client remove the doors of all his built in wardrobes because it was not marked on the front page as an inclusion by the purchaser.

Car Spaces – If you are buying a unit the carspace/garage is included on title or if it is part of a by-law (rule) that you have exclusive rights which can change.

Another client we worked with thought they were purchasing a unit with 2 car spaces however on the title there was only one. They had already exchanged under a cooling off period so they would lose their 0.25% deposit ($1,250.00 of a $500,000.00 purchase) if they were to pull out of the contract.

A swimming pool – We recently advised another client that the main sewer line of a property they wanted was completely across the backyard of the property. The clients had their heart set on putting in a pool right over where Sydney waters main sewer was located.

With most NSW contracts for sale you are accepting the property as is in its current state of condition and repair and the date you are accepting this is the date of exchange so you need to ensure you are happy with this condition. I know from experience when looking for a property to buy often there are a number of other people including the agent around and it makes it difficult to have a good look. Often we have a less thorough look at a house we are purchasing than a car.

I know for one I have learnt from my mistakes. I purchased my first property at auction a number of years ago and I had viewed it 3 times including the day of the auction and it wasn’t until after the auction that night when we went to turn on the lights in the lounge room and dining room that we realised the down lights were not connected. We had to have an electrician connect the lights for us. This would not have made me not want to purchase the property at auction but it was an added expense as a first home buyer I could have done without. Had I have been more thorough with my inspection and realised I could have requested a clause be added to the contract to have the lights connected prior to completion. If the Vendor did not agree to this I could have bid less money on auction to take this into account. Buying a property is one of, if not the biggest investments in your life, and these things do happen, so take the time to be organised, know what you are buying and to have your contract checked.

Our experienced team can help you with the simplest or most complex property transaction, please contact them on 9521 6000 or visit the website for more information

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