Thinking of Buying from a Mortgagee in Possession?
When you are purchasing from a bank that is exercising their right to sell under a mortgage (mortgagee), there are often several special conditions attached to the sale that change many of the standard terms and conditions of a house contract which alter your rights during the conveyance.
The most common special conditions in this type of contract are:
That you will be accepting the property in an “as is” condition;
The waiver of the buyers’ rights to a Building and Pest Inspection. Buyers may still have the property inspected, however you will have no right to terminate the contract if those reports are not satisfactory to you;
The waiver of your right to terminate if there are issues identified with boundaries, approvals or zoning of the property; and
That the seller (Bank) is not responsible for maintaining the property between the date of the contract and settlement.
The examples we have addressed are a select few among many special conditions that accompany these types of sales. Before signing on the dotted line, it is important you make enquiries with your local authority, carry out inspections of the property and have the contract reviewed by your solicitor prior to signing the contract so you know exactly what you buying before it’s too late!
contract, conveyance, conveyancing, jessica bray, mortgage, mortgagee, property, terms and conditions