Hi guys,
Sorry to seem like a bit of a prat and request urgent help but I am wanting to make an offer on a house this morning and a little unsure about the practical way this is done. This will be my first RE purchase.
I would appreciate if anybody can have a read of my understanding of the process and correct any misconceptions or provide any hints and tips about how to make it run more smoothly.
Thanks a lot in advance.
Firstly, I understand that ordinarily the first communication will be with the agent verbally (ie I can ring him up) and we will basically just talk about price. Ie “Can you take an offer of $x to the vendor please?” At this stage I can try whatever negotiating tactics I think will work to get the best price for me.
Although we may come to an in principle agreement here, there is no binding contract formed.
Then at some point this must be converted into a written offer. This is where the subject to conditions will be found.
I am not sure on what document this happens though – will I be signing the Contract for Sale and providing additional special conditions, or is there some other kind of offer document independent of the contract that is effectively an agreement to agree (which i seem to recall isn’t actually binding anyway)…..
Very confused. I will be endeavouring to contact a lawyer this morning but not sure if I will get a response before I start making the telephone calls to agent.
Would you guys think that it is fine to make the phone calls prior to legal advice, then obtain legal advice prior to signing anything…
Thanks again for your help, this forum has been an absolute mine of useful information for me over the last 6 months or so as I have been preparing for this purchase!
[biggrin]You seem to have quite a good grasp on the process there.
In NSW, and most states differ in the details, one can make all the arrangements verbally. Sometimes a deposit of $500 – 1000 is made but it is only really a sign of good faith and means little other than to show you are serious.
After a price is agreed the contract is sent to your solicitor who checks it and makes any changes to protect you then you sign it. It goes to the vendors solicitor and if happy they sign as well.
At this stage the property is yours subject to any clauses. The vendor cannot take any other offers. Important to note that until the contract is signed by both parties they can accept any higher offer.
Good luck with it all.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Simon.
I guess I just have to work up the courage to make the call and take the plunge then….[worried]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
