Question 1

What happens if you can't secure financing and the Contract isn't subject to finance?

Accepted Answer

If the Contract is not subject to finance, and you are unable to obtain or maintain finance approval for the transaction or otherwise do not have immediately available cleared funds (e.g. you are relying on an inheritance or property sale), you will have no right to use the finance condition to terminate the Contract.

Question 2

What property issues might you be unaware of but forced to accept?

Accepted Answer

Some issues or search results affecting the Property may exist which you are unaware of, but be forced to accept, such as rates adjustments, council charges, unapproved structures, restrictions on use of the Property, flood prone land, services not connected, asbestos, contamination of the Property including issues caused by the manufacture or use of illicit drugs which can be expensive to rectify.

Question 3

What challenges might arise if search results are delayed before condition dates or settlement?

Accepted Answer

You may also have difficulty obtaining search results before condition dates or settlement to exercise your rights under the contract. Issues such as these may also impact the property valuation and reduce the amount of a financier is willing to lend against the property.

Question 4

What obligations might come with the Property requiring additional expenses or actions?

Accepted Answer

There may be obligations that come with the Property requiring you to spend money or grant easements, such as outstanding development approval conditions, obtaining a pool safety certificate, installing compliant smoke alarms or a safety switch.

Question 5

What potential issues might the contract itself have?

Accepted Answer

The contract itself may have issues such as failure to stipulate the correct Buyer entity (for tax or investment purposes), deposit payment issues, lack of an appropriate condition to deal with your circumstances e.g. to deal with foreign ownership issues, to obtain finance approval, to provide for contemporaneous settlement of a related transaction including where funds are required from an existing sale.

Potential Issues with the Property or Contract

Buyers

Obtaining Finance

Adverse Search Results

Obligations that come with the Property

Contract Issues

Sellers

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