Shedding light on buyers’ burning questions
REIWA started an information service in 1992 to help buyers, sellers, tenants and landlords find their way around real estate.
The service enables Western Australians dealing with a REIWA agent to find answers to their real estate questions and concerns.
Damian Collins, President of REIWA, spoke to West Real Estate and addressed some common buyer questions.
What happens if the lender can’t approve my application by the latest deadline?
A buyer can try to negotiate with the seller to extend the financing period.
If agreement cannot be reached to extend, the contract will continue until either the seller terminates the contract, with the deposit being returned to the buyer, or the buyer notifies the seller that financing has been approved.
If I need financing, do I need to designate a lender along with the amount of the loan?
no The financing terms state that if no details are given, the lender can be any lender and the loan amount is equal to the purchase price.
Can I withdraw my offer during negotiations?
An offer can be withdrawn at any time before the seller signs the contract and notifies the buyer that the contract has been signed.
What if I’m told the owner is considering multiple offers?
In the current market, it is not uncommon for a seller to receive multiple offers.
It is important to remember that the seller is not obliged to consider offers in the order in which they are received.
You may or may not be offered the option to make your best offer.
If you are not offered a formal opportunity to revise your offer, you should consider whether the offer presented is your best offer in terms of the purchase price and the terms involved.
You can revise your offer and submit it to the seller if you wish.
Sellers often inform all buyers who have submitted a bid through their sales representative that multiple bids have been received and give you the opportunity to revise your bid by the date they specify.
Is there a time limit for how long a seller has to respond to an offer?
There are no laws that dictate how long a seller must respond to an offer.
If the buyer is not satisfied with the seller’s duration, they may withdraw their offer or, alternatively, include an expiration date in their offer by which the offer expires without the need for a formal withdrawal.
Who is responsible for building supervision?
A special building regulation condition is not a contractual condition.
Since it is usually the buyer who requires a building inspection or a termite inspection, the cost of these inspections will be borne by the buyer.
What is a construction defect?
Structural defects refer to the building structure, not cosmetic or minor non-structural defects such as leaky faucets and non-functioning electrical outlets.
Most buyers and sellers use the REIWA Annex, which defines a structural defect and requires a building inspection to Australian Standards.
What is the final inspection for?
It is a standard clause in the contract where the seller warrants that the property will be in the same condition and condition as it was immediately prior to the contract date.
The purpose of the final inspection is to ensure that the seller keeps their promise. For example, if the grass is green on the contract date, it must also be green on the billing date.
The contract may also contain special conditions. For example, it may be necessary for the seller to paint the living room red, and you will determine at the final inspection whether the seller has in fact painted the room red.
Why am I receiving a disclosure statement with purchase? Strata-titled property?
Under the Strata Titles Act, the buyer must be given certain information before signing the contract of sale.
The disclosure sets forth details of the Strata property to be acquired, including copies of the floor plan and articles of incorporation, copies of all minutes and statements of account, and details of the dues paid by the Strata property owners for the maintenance of the common property.
Are electronic signatures allowed?
Yes, electronic signatures are legal under the Electronic Transactions Act. It is now widespread that all contracts are signed electronically.
When is a contract concluded?
When all parties have signed an agreement on the terms of the contract, the representing agent notifies the parties that a contract has been formed.