| Vendors |
Purchasers |
| Rank |
Cause |
Costs |
Rank |
Cause |
Cost |
| 1 |
Not disclosing known illegal structures in the contract of sale |
Purchaser will sue |
1 |
You got fooled by the hidden meaning of pre-approval (You must check the real meaning of the said word) |
Loan declined and lost deposit or be sued for the 10% of the sale price |
| 2 |
Don't have enough equity to pay the bank |
Bank will not settle |
2 |
You failed to budget for government incidentals and hidden fees (no surplus funds) |
Cannot settle as short of funds |
|
|
|
3 |
You didn't ask for 10 working days cooling off and only accept the outdated 5 days |
Don't have enough time to get a formal approval |
|
|
|
4 |
You didn't or have failed to rescind on time and has no formally approved loan evidence in writing |
10% of the sale price |
|
|
|
5 |
Failed to get the second part of the deposit being 9.75% deposit to the agent within the cooling off period (total deposit 10%) |
The vendor will sue for the 10% of the sale price. They can also sue for further lost later |
|
|
|
6 |
You failed to get a termite report |
The property could be full of termite |
|
|
|
7 |
You failed to get a building report |
The property might not be structurally good |
|
|
|
8 |
You failed to get a strata inspection report (for strata) |
There are problems with strata and also unexpected cost increase |
|
|
|
9 |
You failed to take photos of the surface of the property and inclusions before exchange |
Major arguments before settlement will arise |
|
|
|
10 |
You failed to put everything in writing and believing everything a salesman said |
Land law allows the salesman to lie. Only what is written in the contract is legally binding. It will cost you emotion distress |
|
|
|
11 |
You failed to buy unknown illegal structure insurance |
Council ask you to knock down the illegal structure when discovered |
|
|
|
12 |
You failed to check with the local council what you can build on the land (for vacant land) |
You cannot build your desired property |
