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At this point, I organise all the other professionals to inspect the property. However, unless you say otherwise, I don’t see their reports, but I do ask the company to email a copy to you. If there is anything that should be addressed we can work as a team to solve the problem. The solicitor will phone or email you and it’s your choice to go ahead or not, given the findings in the reports. Your solicitor will inform the vendor’s solicitor of your decision and usually when all the terms and conditions are met, the contract is unconditional. The deposit is then paid to the vendor’s solicitor.
If the property you’re buying is vacant or owner-occupied you have one final inspection before settlement. If the inspection reveals the owner has to do some work to the property then you have another inspection to check that the work has been done.
If there is a tenant in the property, you don’t have an automatic right for a final inspection. Consent will be necessary from the tenant and since you are not yet the owner, the vendor will have to arrange this for you.
A back-up offer is a second offer signed by another purchaser. So, if the conditions of the first contract can’t be met then the vendor must give the first buyers the opportunity to go unconditional. Only if they can’t meet the conditions, can the vendor cancel the first contract and continue with the second, back-up offer. Again, this is not gazumping.
The vendor is bound to the first contract until the buyers say they can’t proceed and whether it will go ahead is in the buyers’ hands. If, for instance, they can’t get the finance they hoped for, they will have to choose to pay a larger deposit or give notice to the vendor that they can’t continue with the deal. Only then can the vendor take up the second offer.
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