Problems with the “Subject to Finance” clause

Many buyers assume the "Subject to Finance" clause gives them an easy way out of the contract if they cannot get a loan. The clause must be followed strictly, however. It can also operate unreasonably in several ways: The clause contains several strict time limits including that the buyer must apply for finance "immediately". That means what it says: you do not have a few days to make a loan application. You should be ready to make your loan application on the day you sign the contract or, if it is signed late afternoon or on a non-business day, by early [...]

Problems with the “Subject to Finance” clause2019-09-15T15:13:03+08:00

Structural and other major building defects

(This FAQ does not apply to buying a new property in the same way as to buying an established home. See more details regarding new properties at the end.) Buying a property is the biggest investment many people will ever make. Yet they often take far more car when buying a car: either choosing one with a long manufacturer's warranty or getting a mechanical inspection done first. Some buyers are even smart enough to make the contract conditional upon having a builder certify that the property has no structural defects. There is a serious problem with most of these clauses which [...]

Structural and other major building defects2019-09-15T16:39:52+08:00

Termites & timber pests: Infestation and past damage

Most people know to make their real estate purchase contract conditional upon having the property certified termite-free. But there are several issues with these conditions which the average buyer is unaware of. It’s not just termites that pose a risk: – European borers and wood rot (a fungus) can also destroy roof and wall timber. And it’s not only active infestations you should be concerned about. Past damage from a treated infestation could also cost you thousands to repair. Therefore, you should request that the contract includes a Special Condition which covers the following issues: The contract is conditional upon the [...]

Termites & timber pests: Infestation and past damage2019-09-15T15:25:31+08:00

Defective built-in electrical, plumbing and gas appliances

When you inspect a property you won't necessarily test every built-in electrical, plumbing and gas appliance in the property. And you certainly can't check that every electrical and communications wire and plug and plumbing and gas pipe is in safe working order and complies with regulations. Therefore, you should request that the contract includes a condition with the following features: The Seller warrants that these items will be in good, safe working order and comply with all applicable regulations at settlement. The Buyer can send a trade person or building inspector to the property before settlement to check whether the condition [...]

Defective built-in electrical, plumbing and gas appliances2019-09-15T14:15:07+08:00

What fees are involved in a settlement (Buyers)?

In addition to the purchase price of the property there will be other expenses involved that you need to be aware of such as: Fees and charges payable for obtaining a loan, if finance is required (payable directly to your lender). Stamp duty. Landgate fees for registering you as new owner of the property. ASIC search fee (if any party, including you, is a company). This is to find out full details of the company to ensure it is not in liquidation or administration, etc. A share of any rates and taxes paid by the seller on the property to the [...]

What fees are involved in a settlement (Buyers)?2019-09-15T14:24:16+08:00