How would you like to get your purchase costs, e.g. Stamp Duty and legal fees, paid by the property vendor (seller) at the settlement table?
It’s amazing how people think that just because something has been done a particular way for a number of years, it can’t be done any other way. As you’ll see inside our Vendor Pays Offer documentation, the big players in the industry think nothing of getting the vendor to pay some or all of their purchase costs for them. If the big players do it, why not you?
‘Settlement’ is an Interesting Experience
If you’ve never been to a property ‘settlement’, it’s an interesting experience. For the ‘average’ settlement there are normally three people around the table, i.e. representatives of the vendor, the buyer and the new lender (bank, building society, etc). If it’s all been setup correctly it’s a quick process that takes just minutes. The lender receives their mortgage documents and Title to the property and the buyer hands over cheques to pay council rates, water rates, the real estate agent, the vendor, etc.
All these costs get paid at the settlement table, so why not yours? Why not get the vendor to pay the Stamp Duty and your legal fees? We do and it certainly doesn’t break any rules.
Our New ‘Standard’
For years now, almost all our purchases and the purchases of our JV Partners have been structured so our purchase costs are included in the cost of the property. No rebates and nothing hidden. The process is completely transparent to all involved, including lenders.
Our Vendor Pays Offer product contains a template Vendor Pays Offer and the required Special Conditions to make your Vendor Pays Offer fits the Contract of Sale. Just fill in the blanks and send them off to the vendor or their Agent. It’s our new ‘standard’ way of buying a house.
Is there Resistance to Change?
Of course! Often the Vendor’s solicitor/conveyancer will be unfamiliar with this type of offer and this can generate a negative attitude to your Offer. To overcome this we’ve also included a letter you can forward to the solicitor/conveyancer, showing how some of the largest firms in Australia use this same technique.
When we first started using this technique we found it difficult to get these Vendor Pays Offers across the line. It took persistence. Don’t be afraid to show that you’ll move onto the next property if your Vendor Pays Offer isn’t accepted. Over time Agents, Solicitors and Conveyancers in our local area have become familiar with what we do. Now, when we run up against resistance we simply rattle off the names of Agents, Solicitors and Conveyancers in the local area we’ve bought properties through, who are happy to accept our Offers. When combined with our proof that the big players use the same technique, this usually does the trick.
In summary, keep your cheque book closed and start getting somebody else to write the cheques for Stamp Duty and your legal costs. There is another way!