On Monday morning purchasers can experience a real estate hangover. After a weekend of elation at finding their dream house and pressure from the agent to make an offer, with hesitation they sign on the dotted line and their concerns about legal advice are pushed aside. They are locked into a contract. Unfortunately, the emotive attachment that causes you to buy a property can also cause you to forego certain protections when you make your offer.
Give yourself a way out.
A precisely worded finance condition can give you a way out if, despite your best efforts, your finance is rejected.
One of the worst situations is telling a client, who doesn’t have a finance condition and can’t get finance, that they will have to come up with the money for settlement somehow.
Specific pest and building inspection’s special conditions can stop you being saddled with a property that requires expensive repairs. To protect the purchaser a building inspection special condition should be to the purchaser’s satisfaction, not simply for major structural defects. Legal advice before you sign can assist you in wording special conditions effectively.
Don’t let the agent word them for you.
I’m worried when a purchaser says that they relied on the agent to word their special conditions.
Last week a client came to us for help after he had trusted the agent to word a building inspection special condition for him. A subsequent building inspection uncovered building works were needed to the tune of $20,000. When he approached the agent to end the contract, he was stunned to find that the agent was unwilling to assist him in using that same special condition to end the contract. The agent was even angry at the purchaser for daring to end the contract after making the proper investigations.
Ask your solicitor about the proper wording of special conditions during the pre-contract advice process.
For more information click on the link to view the entire article on the Lawyers Conveyancing Website.