Checklists

1. We have checked all conditions are fair & disclose no title restrictions or adverse easements etc.
2. Your required finance is approved (preferably in writing).
3. For houses – relevant building/pest/survey reports are obtained.
4. F or home units – the strata records are inspected (eg. minutes, financial health of scheme inc. sinking fund balance, repair/defects history, harmony issues etc).

Warning:

Until entirely satisfied about the above concerns, you should resist being tempted into signing a Contract because you can “pull out” during the “cooling-off” period (usually 5 business days). Whilst this strategy removes any risk of being “gazumped” (i.e. by locking the seller into the agreed price during this period), you lose tactical bargaining power to renegotiate a lower price or better Contract conditions (e.g. the seller to fix a building fault or contribute to an impending special levy revealed in a building or strata report), because the seller knows your threat to otherwise withdraw will result in forfeiture of your 0.25% deposit (i.e. it would benefit him at your cost).

Evaluate Risks

• Gazumping – if not signing Contract with “cool-off’.
• Loss of “Bargaining Power” – if signing with “cool off”

Price Negotiation

•  Pre-Auction Offers – declares your hand, so Vendor can start a “Dutch” auction (perhaps against fictional competitors?) or fix a reserve price if the auction is held.
•  Avoid conveying any emotional attachment to the property or that your price is not final.
•  Consider obtaining an independent valuation or seeking an opinion from a rival agent.
•  Check-out websites to research comparable sales so the selling agent can show the vendor your offer has substance.

 Useful Websites click here.

Auction tips

•  A bidder must register beforehand (proof of identification is required – e.g. drivers licence.)
•  Experience dummy-runs as an observer.
•  Stand in the auction room where you can view rival bidders
•  Read body language of bidders (e.g. Shaking of heads, wavering or coaxed bids, all signal weakness/surrender)
• Set and stick to your budget
• Decide whether to bid confidently early, hard & fast, intermittently or hold back to enter with a late “knock-out” increase – to psych out competition, especially if property is stated to be “ on the market”.
• Don’t bid against yourself as the highest bidder, whether before or after the property is “passed-in” – those   who  walk away can often later negotiate a lower price with a demoralised seller.
• You can authorise (in writing) a representative to bid on your behalf and sign a Contract. (One bidder can represent two or more purchasers).
• Either a cheque drawn to the agent’s trust account (or a bond/guarantee) for the 10% deposit (unless a lower percentage is earlier negotiated) must be handed over at the same time the Contract is signed immediately following the auction.
• No cooling off period applies for contracts signed after the auction is concluded or on the same day.
• Auction procedures can be viewed at: www.fairtrading.nsw.gov.au

FOR SELLERS

As the listing agent must hold a draft Contract for sale before marketing can commence, we need from you:

1. The selling agent’s particulars (free of charge, we will review the sale agency agreement).
2. Copies of a recent Council rate (or, if a unit, Strata Levy) notice and, if Land Tax applies (e.g. an investment property where the land value exceeds the threshold level), the assessment for the current calendar year.
3. Payment for the Contract disclosure documents – eg. title searches/plans, sewer diagram & section 149 (zoning) certificate, (unless the selling agent orders & collects that certificate from the local Council).
4. A list of inclusions (eg. blinds, carpets, light fittings, dishwasher, screens etc) and any fittings to be expressly excluded.
5. If a tenancy is to continue, a copy of the Lease and particulars of the letting agent.
6. Copies of Home Warranty Insurance Certificate(s) and building plan(s) endorsed with Council’s approval for any additions (e.g. pool, garage, extension – out or up) or alterations (including new kitchen, bathroom or laundry) made to the home.
7. Any survey report or plans you hold showing the location of the improvements erected on the land or the accommodation lay-out.

Notes:

Items D – G do not apply to vacant land

Item G is not required for Strata Title Properties

Click here to contact us

J J Honeyman & Associates

Our Advantages

Contact Us

PLEASE NOTE that on 20 August 2018 the JJ Honeyman team merged into Rydge Evans Lawyers.

Being a small firm we pride ourselves in our knowledge and speed of delivery of services.

Rydge Evans Lawyers
Level 4, 44 Pitt Street
SYDNEY NSW 2001

We look forward to continuing to provide you with the same high level of service and care at the new firm.

A contract for the purchase of a property is normally reviewed within one hour of receipt.

J.J. Honeyman & Associates | Sale | Purchase | Mortgage | Lease | Will | Power of Attorney | Lawyers, Sydney Australia

Copyright © 2020 · Created and hosted by LEAP · Log in