When deals go pear-shaped

Herald Sun - Property - - Front Page -

WHAT can go wrong with prop­erty trans­ac­tions? By far the most com­mon prob­lem is the buyer not com­ing up with the money at set­tle­ment.

If that hap­pens, the ven­dor has the right to ex­tend the time for set­tle­ment, if they are will­ing to do so, or bring the con­tract to an end and claim com­pen­sa­tion from the buyer.

From the buyer’s view­point, it’s im­por­tant to not en­ter into a con­tract to buy un­less they are com­pletely con­fi­dent they can come up with the pur­chase price on the due date.

An­other com­mon prob­lem con­cerns the con­di­tion of the prop­erty by the time set­tle­ment comes around.

The par­ties should con­sult their so­lic­i­tor at the time of en­ter­ing into the con­tract to make sure the con­tract is quite clear as to what is ex­pected in this re­gard. CAN you get out of a con­tract af­ter you’ve signed? There is a cool­ing-off pe­riod of three days for some trans­ac­tions, but there are ex­cep­tions to that, in­clud­ing when the prop­erty was bought at auc­tion.

A buyer should never sign a con­tract on the as­sump­tion they will be able to get out of it.

The cool­ing-off pe­riod should be used only in ex­cep­tional cir­cum­stances. WHAT if the fences are not on the bound­ary? A so­lic­i­tor will give you ad­vice about the steps you should take be­fore sign­ing the con­tract, which would in­clude mak­ing sure the fences are in the cor­rect place.

There may be reme­dies later, but a buyer doesn’t want to find them­selves in the po­si­tion of hav­ing to ar­gue.

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