Contact Us

Testimonials!

Home Buying Tips:

Purchasers Checklist!

Why use Brown & Brown?

Newsletters!

Are you selling?

How to protect your purchase?

Market Watch from Elders, Crows Nest (current as of November, 2008:

"Plunging interest rates and increased Government incentives for first home buyers, will ensure the demand for property up to $500,000 can only increase with buyers stepping out of the over heated rental market. With the NSW Government offering free stamp duty, plus the recently announced additional $3,000 incentive, on top of the $21,000 in Federal grants available, a first home buyer purchasing a new property at $500,000 now enjoys a massive $43,000 advantage over any other buyer and with recent rent increases biting, there has never been a better incentive to buy a first home! This means the demand for property within this price range will remain the strongest market sector”.

For information on buying or selling contact Tony Triglone at Elders Real Estate Crows Nest on: Ph: 9901 3333.

Brown & Brown e-Newsletter
by Garth Brown

Welcome to our last newsletter for the Year.

We thank all our ever expanding readership for the support you have all given our Business over the last couple of years.

Our next newsletter will be February 2009

As a Community of like-minded people, if you have any experiences about buying and selling real estate – please email them in so we can share and learn what to do and what not to do next time, (the emails are treated anonymously and full names are not published).
Here is an interesting experience emailed in from one of our Clients about a delay in settlement.

Dear Garth,

I want to share an experience we had with the purchase of our property.

The settlement date was set and as we were renting we geared everything around the set date, i.e. giving 4 weeks notice to our Agent, arranging removalist, organising services to be cut off at rental address and turned on at the new house. Plus coordinating work related issues associated with operating a busy home office and needing good planning to minimise down time, etc. etc.

Three days before D day, the Vendors Solicitor informed us they
would NOT be moving on the settlement date and would move
sometime within the next two weeks but not sure what day or date?

We were stunned because everything was arranged!

Our business property partner is a Solicitor and she always handles
the conveyancing herself, however, she was away overseas and
she'd not discussed this possibility before she left.

We phoned our Bank Manager, he explained the Vendors are perfectly within their rights to extend up to 14 days past settlement date without any penalty. This was the FIRST TIME we heard this, even though we'd bought and sold properties before.
We then had a very difficult time with our rental Agent, and re-negotiating the whole move. It was an awful situation and one we never want to find ourselves in again.

Thank you for your eNewsletters, they are very, very informative, I wish we'd had them before this experience.

Regards,

Michelle

Garths comment:
When Purchasing a property the normal settlement from signing the
Contract, paying the Deposit and dating the Contract is six (6) weeks.

However most Contracts also contain a clause that allows for the Vendor to delay for whatever reason without penalty for fourteen days.

Whereas the Purchaser if they do not settle within the six (6) week
period and is at their fault e.g.. Bank not ready to settle, delays in
signing the Mortgage documents - the Vendor can charge "Default
Interest" for fourteen days. If Completion has not been effected within the fourteen (14) days, the Vendor can then Terminate the Contract and keep the Deposit. Then sell the property to someone else.

Important Note about Agency Commission:
Interestingly some Agency Agreements with Real Estate Agents have a clause inserted into them "if the Contract is terminated for whatever
reason the Agent is entitled to their full Commission from the
Terminated Contract Deposit".

Brown and Brown ADVICE:
Vendors be very careful about what you are signing with your Real Estate Agent and seek legal advice from our service ASAP.
Here at Brown & Brown, from the outset, we always specifically mention in our Checklist and Letters the potential possibility:

1. the Vendor can delay for fourteen (14) days without penalty, and
2. the Vendor can charge Default interest if the settlement is delayed by the Purchaser, e.g. this charge, depending on the Purchase Price, could be anywhere from $200 to $600 per day until the completion date.

In Michelle's case I believe this is where the Practitioner failed to
inform her of the potential pitfalls after signing the Contract.
Conveyancing is all about informing and coaching the Client between different stages of the Conveyance.

Imagine if a Football team had no coach!

Thank you again for your valued custom during 2008 and we look
forward to a positive 2009.

License No: 105584

Upcoming Newsletters;
• Pay your Home off sooner

Contact Us by Email
or respond with a comment below: