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Contract Termination
/COOLING
OFF
What is ‘Cooling
Off”?
Pursuant
to Section 31 of the Sale of Land Act a Victorian purchaser
can terminate a contract for the purchase of real estate by
“cooling off” within 3 clear business days from the date the
Purchaser signs the Contract, subject to terms &
conditions.
“Cooling- Off
Period” -Terms &
Conditions
However
the cooling off period does not apply if:-
- The
property in question was brought at or within 3clear business days
before or after a publicly advertised
auction;
- The
purchaser obtained independent legal advice from a lawyer
prior to the signing of the contract;
- A
contract has previously been entered into by both parties
for the same property in similar circumstances;
- The
property is larger than 20 hectares in size and primarily
used for farming;
- The
property is primarily used for industrial or
commercial purposes;
- The
purchaser is either an estate agent or a corporate
body (i.e. company).
IMPORTANT= Remember the
“cooling off” period, “3 clear business days” starts from the date
the purchasers signs the contract regardless to when the vendor may
sign.
“Process in Cooling
Off”
Pursuant
to the Sale of Land Act to “cool off” the purchaser is
required to provide the vendor(s) or the vendor(s) representative
Notice in writing that the purchaser(s) wishes to terminate the
contract “cool off” within the 3 clear business days from the date
the purchaser(s) signed the Contact.
“Costs involved in
Cooling Off”
A
purchaser who “cools off” must pay $100.00 or 0.2%of the purchase
price whichever is the greater.
Although a purchaser
may have the right to “cool off” it would be considered wise for a
purchaser to carry out their full investigations prior to the
signing of the contact.
Cooling off should be
considered as a last resort, to be used by a purchaser when they
realise they are in trouble or made an unforeseen
mistake.
OUR
SERVICES TO YOU
This
office would be more than happy to assist you in overlooking the
Vendors Section 32 Statement or assist in answering any questions
you may have prior to the signing of a contract for the purchase of
real estate. Simply contact this
office.
Settlement is the final
stage, the event that both the vendor and purchaser have eagerly
awaited.
Upon
settlement the purchaser pays the balance of monies due under the
Contract to the vendors as the vendors may direct, upon receipt of
security documents - i.e; Title, transfer
etc)
Once the
documents and cheques have been exchanged and all parties to the
transaction are satisfied, the matter is declared
"settled:.
Settlement, date, venue
and time
Settlement date is the
date usually specified in the Contract. All parties to the
transaction (purchasers representative, vendors representative,
both parties mortgagees) agree on a venue and a time is set for
settlement (usually to the vendor or the vendors mortgagee who
holds the Certificate of Title).
On the
agreed date, venue and time each representative attends settlement
collecting documents and handing over cheques that are required and
the matter is settled.
Once
settled, the vendor, purchaser and selling agent are contacted and
advised settlement has occurred. The selling agent can than release
the keys to the purchaser.
Click
here to
calculate estimated stamp duty.
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