Hi All,
I have been given an oppotunity to purchase an inner Melbourne property Off Market. i.e Not going through real estate agent. Are there any steps or traps I should watch for? Price is below market value, the owner is leaving Melbourne soon. Normally, if you pay a deposit to an agent the money will go into a trust account. But this is owner selling and if I pay him a deposit, is there a way I can cover myself???
Thanks
PandaHi, we've sold one of IPs privately. We got our conveyancer to draw up a contract of sale and when the buyer gave us the deposit cheque, it had to be deposited in a solicitor's trust account (which attracts an additional cost). Doing this gave us a legally binding contract with the Buyer and protected their deposit as we never didn't get the money until settlement.
I'd advise you to talk to a solicitor or a conveyancer and put a similar arrangement in place. This will protect you and your vendor and isn't expensive. It cost us about $150 to have a contract drawn up and a couple of hundred (i can't remember exactly) to have the deposit held in the solicitor trust account.
Hi Panda,
Suggestions:
1.Get an official contract from somewhere – eg REIV, or even the local newsagent / bookstore , or better yet from your solicitor – and make sure both you and your vendor sign it. Exactly like if a real estate agent was involved. These are not very expensive, maybe a hundred dollars or so, if that.
2. As John has suggested above, use either your or your vendors solicitor to hold the deposit money. Yes, it will cost a couple of hundred of dollars, but it will make it all nice and legal.Good luck – sounds as if you have found a bargain.
Thanks,
BDM
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