Conditional Offer

[investorak]

1) Whats the best way to present a conditional sales and purchase agreement to a seller?

I would like to do the following checks
Finance, LIM, Builders inspection, Meth Test

A)Circle finance,lim, builders report and have meth test and property file as conditions at back
OR
B)Circle finance,lim, builders report and not worry about meth test (get done at same time as bulding inspection)
OR
C)Have one due diligence clauses that gives XX days and explain to owner what it means


2) Is it better to send via email or better to meet up in person. I wouldnt want them thinking i am pressuring them into it

[Bobsyouruncle]

Always better to have as little written as possible. So 1 general clause that covers you is usually best. Vendors read multiple clauses and freak out where as due diligence makes more sense to them.
You will always have a better chance of negotiating a lower price in person, always.

[Nick G]

Establish a fair price and then you can negotiate fairly on anything found by independent DD.

[investorak]

Establish a fair price and then you can negotiate fairly on anything found by independent DD.

Whats your normal process Nick?

Do you view the property once and then put in an offer straight away?
Do you come back a second time, sit down with the owner and then hand them the s&p? Are you quiet to see what they say, do you justify the price with sales around the area etc etc

[brokerman]

I'd never draw up my own S&P Agreement. Get it drawn up and checked by your Lawyer and present it as above, with as few conditions as pssoble but always have the essential ones in play to protect yourself. Finance, LIM and Building Inspection.

[investorak]

Has anyone got a good due diligence clause they dont mind sharing?

[Don't believe the Hype]

Has anyone got a good due diligence clause they dont mind sharing?

you will use a solicitor to purchase the property... Get the solicitor to provide these clauses. They will structure to ensure you're protected. When things get messy and they inevitably will if you do enough property transactions you will be glad you spent a few bucks on a good solicitor.

[investorak]

What could you do wrong? its only a general S&P with a general due diligence clause

[Don't believe the Hype]

You are looking to spend hundreds of thousands of dollars... Lots could go wrong and does all the time in property transactions.

A good solicitor will cost you $1k-$2k less than 1% of the money you're investing - well worth the protection and peace of mind.

[Bobsyouruncle]

You're quite right investor there is nothing to go wrong. A standard due diligence clause is fine.

Due Diligence

This agreement is, in all respects, conditional upon the purchaser being satisfied that the property is suitable for the purchaser’s requirements following the purchaser carrying out a due diligence verification of the property.
The date for fulfillment of this due diligence condition is that date being (__) working days after the date of this agreement. The parties acknowledge that this due diligence condition is inserted for the sole benefit of the purchaser and may at any time prior to this agreement being voided be waived by the purchaser giving written notice of waiver to the vendor.

[Don't believe the Hype]

You're quite right investor there is nothing to go wrong. A standard due diligence clause is fine.

Bob... Are you saying in all your dealings nothing has gone wrong? Never faced any legal issues relating to property?

[Bobsyouruncle]

You can't get into any trouble making a conditional offer providing your DD clause is worded for the purchasers benefit. You can cancel for any reason. That's why we use them. Any agent can give you one they are very standard.

[sidinz]

I talked to an agent who advises her clients that a due diligence clause means that the purchaser isn't genuine/serious.

I guess she had a few agreements using this clause fall over. So rightly or wrongly, in a multi-offer situation, she advises her clients to go for an alternative offer with specified conditions rather than a catch-all which can be used if the purchased simply changes their mind.

In fact, she is so against them that when I used the term as a blanket name for my finance/LIM/building inspection, she nearly had a fit.

[Bobsyouruncle]

I would never touch multi offers I always withdraw. Obviously not the right sort of agent for an investor.

[Don't believe the Hype]

I would never agree as a vendor to such a vague clause it hands over complete control to the purchaser.

To get this control you will have to pay overs to get vendor to agree if they agree at all... Good luck with this sort of vague clause in this market.