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we have signed a contract for a block of land
we signed it with out any conditions(not subject to finance)
our settlement is Really long though(end sept)
what happens if we cant get finance?
we were all set for it deposit wise...
will they keep the deposit we put on it?
Oh shiat.
The can certainly keep the deposit if you don't get finance although you may be able to negotiate as long as they find another buyer.
ALWAYS sign it subject to finance!!!! Can you call them and ask them to change it to that?
unfortuantley the owner wouldnt do subject to finance...
block is a BARGAIN price so didnt want to give it up.
ok so we may lose the deposit i think i can handle that.. if it falls through
is it owner or RE that keeps deposit?
What a bugger. I'd say the owner would get the $$$ but pretty sure the RE would (of course), get a % of it somehow....
I assumed all contracts were subject to finance, and signed one without looking properly but I was happy the RE changed it and it wasn't a problem in the end - fingers crossed it's not for you either xoxoxo
Hope you get it - YAY for bargains!
you loose 10% of the purchase price (if you gave them less for your deposit you will still need to pay the full 10%), and could possibly be liable for any difference in price if resold for a lower price to another party - but this depends on your contract. Often with long settlements you are unable to do 'subject to finance' because alot of financial institutions will not offer finance for to far in the future. You just have to wear the risk.
Find a good mortgage broker, you will be surprised at some of the deals they may be able to pull out that you didn't know about.
Check real estate laws - I think there is a cooling off period set in legislation that gives a purchaser a few days to get out of a purchase. I believe this is the case in Victoria, but I'm not sure if only applies to already established homes or if it also applies to blocks of land as well.
Just looked it up on the internet - the purchaser has 3 working days to cool off. There are terms and conditions but it might give you an opportunity to hustle and try and get pre-approval now if it's not too late.
What state are you in?
The legislation differs from state to state as do conveyancing practices.
If you are in NSW you will lose 10% of the purchase price (the deposit) and if the block is sold for less than what you are going to pay for it they can sue you for damages and also cost in readvertising additonal legal fees etc.
The owner will get the 10% not the real estate.
in SA
cooling off period has been and gone
Hope it all works out for you and you get the finance