The Victorian Governments Influence And Weasel Clauses In Real Estate

The Victorian Governments Influence And Weasel Clauses In Real Estate

In speaking of real estate in Australia, there is also a need to refer to the Victorian government. Aside from knowing the Victorian governments influence on real estate, this article will also give you an overview of what a weasel clause is.

As of June 28, 2007, the Victorian government has already altered the legislation relating to lease options and sandwich lease options. From that day forward, stamp duty on lease options already costs double. Any lease options done prior to June 28 is still fine. But after, if you do a lease option assignment, youll be paying a double stamp duty. Thus, this means you may need to refer to this style of contract with a different kind of name. Of course, you have to use a new name for your lease options so you can avoid a double stamp duty. Its a simple money saving secret!

After talking about the Victorian governments double stamp duty legislation, lets head on over to defining what a weasel clause is.

When its your first time to buy houses and you are still starting to build up your confidence utilizing lease options, a weasel clause always prove useful, most especially when both the seller and the agent doesnt know how a lease option works. Instead of using a lease option to buy a house, its better to use a standard contract with a weasel clause in it.

At times, a weasel clause is also important when the sellers are getting divorced. In this situation, its impossible to set-up a creative offer across both parties and so a weasel clause proves really useful. Usually, in divorce cases, the ex-couple hate each other and they just want the house sold immediately, get their share, and dash off. So, a deal that pays some now and pays some later will not work for this couple because they see it as a long-term deal and they dont want it!
So, whats a weasel clause? A weasel clause is a statement in a contract that gives allows either of the contracting party to get out of the contract easily. Some weasel clauses are observable, such as subject to satisfactory review by the buyers or sellers attorney. Its obvious because any reputable attorney can easily find something unsatisfactory about the agreement if his client wants to back out. On the other hand, there are other weasel clauses too that are harder to understand such as subject to seller(s) finding suitable housing. For the inexperienced buyers and agents, they might think it means that sellers have to look for another place to live before they establish the final closing date on the sellers home. If this is the case, what will happen to the buyer who may have already spent for inspections, attorneys, appraisals and others? Will the seller just say Im sorry but I have to cancel the deal because I havent found replacement home?

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