Pur­chas­ing your first home with­out de­lay

The Coffs Coast Advocate - - NEWS - MANNY WOOD

JULIE and Justin have been look­ing to buy their first home for some time. They missed out on the last house when an­other pur­chaser was able to ex­change con­tracts be­fore them.

They have now found an­other home and they talk to their so­lic­i­tor about the best way to se­cure the pur­chase. They are ad­vised that they can ex­change con­tracts sub­ject to a five-busi­ness day cool­ing-off pe­riod. This will al­low Julie and Justin to sign the con­tracts im­me­di­ately and con­duct pest and build­ing in­spec­tions, and ob­tain ap­proval of their home loan within this time.

They are ad­vised that they stand to lose 0.25 per cent of the pur­chase price if they change their mind within the five busi­ness days.

Julie and Justin ad­vise their so­lic­i­tor that an agreed pur­chase price has been reached of $500,000 and their so­lic­i­tor ad­vises as they are first home buy­ers, they are en­ti­tled to an ex­emp­tion of stamp duty which would have oth­er­wise been $18,010. They are ad­vised that as the prop­erty is not a new prop­erty, they are not en­ti­tled to the first home buy­ers new home grant of $10,000.

Julie and Justin ob­tain the pest and build­ing re­ports within the cool­ing-off pe­riod and they are pleased with the re­ports.

Un­for­tu­nately, their bank is not able to pro­vide un­con­di­tional loan ap­proval within the cool­ing-off pe­riod but their so­lic­i­tor is able to ne­go­ti­ate an ex­ten­sion of two fur­ther days and loan ap­proval is ul­ti­mately ob­tained within this time.

Hav­ing now com­pleted their due dili­gence in­ves­ti­ga­tions, Julie and Justin are happy for the cool­ing-off pe­riod to ex­pire and are ad­vised set­tle­ment will pro­ceed as nor­mal, 28 days from the date of sign­ing the con­tract.

If you would like Manny to ad­dress a le­gal is­sue, send your re­quest to manny.wood@ticli­blax­land.com.au or call 6648 7487.

Right ad­vice will en­sure ev­ery­thing is “cool”.

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