Hypothetical by Manny Wood published in the Coffs Coast News Of The Area on 5 February 2021.
Penny wants to relocate from Sydney to Coffs Harbour. She places her Sydney home on the market and researches Coffs Harbour properties.
Penny soon realises that homes in Coffs Harbour are selling quickly and that when she finds the right house, she will need to be in a position to exchange contracts as soon as possible.
Penny finds a buyer for her Sydney home and exchanges contracts with an extended settlement period, so that she can find the right property in Coffs Harbour.
Penny also contacts her bank to obtain preapproval regarding the financing of her new home.
Penny drives to Coffs Harbour and finds the perfect home at a Saturday morning “open house”. She is very keen on securing the property and exchanges contracts later that day at the real estate agent’s office.
She exchanges contracts on the basis that she has a five business day cooling-off period, which means that if she changes her mind during this time, she will only forfeit 0.25% of the agreed price, which in her case was around $1,000.
Penny immediately contacts a solicitor with experience in the Coffs Harbour area and commissions pest and building reports. The solicitor examines the contract and obtains a copy of the council file, with a view to identifying any unauthorised works. The solicitor identifies some problematic clauses in the contract, which the vendor’s solicitor agrees to remove and an appropriate settlement date is agreed upon.
Unfortunately, there is some delay in obtaining finance approval from Penny’s bank, but her solicitor successfully negotiates an extension of the cooling-off period and approval is received shortly thereafter.
Penny pays the balance of the 10% deposit and is very happy that she has secured her sea-change property.
If YOU would like a particular issue addressed please email Manny at manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
