Hi all,
I have a simple question that I’m kind of embarrassed to ask…
Having never bought property before, I’m not sure who I would write out the deposit cheque to! If I attach a cheque to my offer, do I make it out to the agency?
And would it matter if the cheque was from a different entity to the one making the offer? For example, could I issue the cheque from my company even though I might be buying the house in my own name?
yes, I am still very green…
[blush2]
Just ask the agent when you do your offer. I have made verbal offers without even needing to write a cheque till the offer was accepted.
Many agents work in different ways.
On the topic of offers, my partner and I recently made offers on 2 properties. Rather than accepting a verbal offer, the agent/s wanted to sign us up on a contract before settling on a price with the vendor. They said it is better to have a signed contract to show the vendor as it proves that you are serious about purchasing, and therefore puts the vendor under pressure to sell.
We were a bit dubious about this but it seems to be the way real estate agents operate in this particular town as we had 2 different agents do the same thing.
What do you think??
Ian
You’re brave. [biggrin]
I’d be saying, “If I wasn’t serious do you think I’d be buying TWO properties from you at once!?”
Furthermore, *I* would not sign anything until I had amended the contract with a couple of escape clauses. (Subject to structural report, subject to lender/loan approval…)
But that’s just me I guess…
Allan.
contracts aren’t the problem as long as you have your own get out clause, best one i heard was ‘ confirmation of partner required’….
his partner being his cat….
scottee
Bite off as much as you can and CHEW LIKE HELL!!!
Hi Persistence
If you are buying through an agent, you will normally draw the check to their Trust Account. However, the agent should advise these details. I have had instances where I have given the cheque at the time of signing the contract.
With that said, I have also stated how much deposit I will put down and then provide a 24 hour to 48 hour timeframe to supply the cheque.
With regard to the cheque, so long as you don’t breach any corporations law – I have used my company cheque account for the deposit and then reimbursed the account from my own savings. Trust me when I say the agent doesn’t care where the money comes from, so long as they secure the sale.
Remember to do the best thing by yourself! What I mean by this is if you only want to pay a small deposit, do so. Your show of faith is the signing of the contract, the offer of a deposit and at the end of the day, why should you tie up your cash flow in an Agent’s trust account and forgo the interest! I bought a $285K investment property with a $100 down and that was that! You are in control of the situation not the agent!
cheers[biggrin]
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