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"What conditions should we pick?"
Unfortunately, mortgage advisors get asked this question when a first-home buyer finds a property they like.
Yes, this is a question for a lawyer, but there are some key things you can point out to them (scroll to the bottom for our cheat sheet).
Offers are almost urgent.
This creates pressure and unqualified decision making.
In hindsight, first-home buyers often wish they included a due diligence condition (subjective approval to cancel) vs. standard conditions (these provide plenty of cover but follow an objective process to cancel the agreement).
If you don't include a due diligence condition, then you risk purchasing a property you may not actually want.
1. " We found another property we like better"
2. "The neighbours are crazy"
3. "We didn't realise it was a shared driveway"
Buyer's remorse happens more than you think!
First home buyers are often told by agent:
“It’s just a standard agreement.”
“It’s on the ADLS form.”
“There’s not much on the title.”
But here’s what I see weekly.
1. Further terms tucked at the back waiving standard warranties.
2. General terms struck out.
3. Titles loaded with covenants or easements.
4. LIM reports missing historic CCCs.
5. Property located within a flood plain or flood prone area.
Standard conditions only protect you within narrow lanes.
Due diligence is wide and subjective.
It gives your client an exit without explaining themselves.
As I explained back in Volume 1, due diligence gives flexibility that finance, building report and LIM conditions do not.
Here’s the cheat sheet I use.
It's not perfect but it will put any first-home buyer on notice.
Again, always get a lawyer to check this off in advance...
Use this template to help make an offer: How to submit an offer conditional on 10 working days of due diligence
