Under contract / Offer

Viewing 8 posts - 1 through 8 (of 8 total)

ABM
Participant
@abm
Join Date: 2005
Post Count: 5
April 4, 2005 - 10:58 pm
Hi guys I’m a newbie to this site.
Just have a quick question….
What does the term under contract/under offer mean?
Thanks
AM
oshen
Member
@oshen
Join Date: 2005
Post Count: 112
April 5, 2005 - 1:03 am
That indicates that the relevant property has someone currently in the process of buying it. If you want to buy that property, you would have to wait and hope that the current sale falls through. The most likely reason for a sale not to happen after it is under contract is that the buyer can’t organize finance. The property would then be “for sale” again. If the sale does go through, then the property would be “sold” at the end of the contract period. It is typically 6 weeks from agreeing to buy the property (signing the contract), to when it is yours.
Jenny Lamberton
Member
@jenny-lamberton
Join Date: 2003
Post Count: 11
April 5, 2005 - 10:25 am
You can make a back up offer on a property that is under agreement. Your agent will insert a backup clause, this allows you to have first option on the property if the 1st offer does not go ahead. [biggrin]
Jenny Lamberton
Steve McKnight
Keymaster
@stevemcknight
Join Date: 2001
Post Count: 1,763
April 5, 2005 - 10:53 am
Jenny,
Is it really you??? What a pleasant surprise!
Welcome to the forum and thanks for your contribution.
Cheers,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.com
Success comes from doing things differently
Jenny Lamberton
Member
@jenny-lamberton
Join Date: 2003
Post Count: 11
April 5, 2005 - 11:16 am
Yes it’s me, I love reading these forums, looking forward to seeing you and Dave again in July. Take care Jen.[cap]
Jenny Lamberton
ABM
Participant
@abm
Join Date: 2005
Post Count: 5
April 5, 2005 - 11:09 pm
Thanks for that guys, very helpful.
One more question,
Is this common? I don’t think I have ever seen it in an ad before?
Thanks
AM
oshen
Member
@oshen
Join Date: 2005
Post Count: 112
April 6, 2005 - 12:30 am
Lol, then where did you see it? Buying a property requires a contract of sale, so, yes it’s pretty common. Why don’t you have a look at http://www.realestate.com.au ? You’ll see a few of the properties advertised there are under contract.
Jenny Lamberton
Member
@jenny-lamberton
Join Date: 2003
Post Count: 11
April 6, 2005 - 7:14 am
Very common in a busy market. There are two ways of presenting a back up offer. One is a standard clause, that allows the vendor to sign your offer subject to him successfully cancelling the prior offer, should it not go unconditional upon the set day. Two-You can further add to the clause that the vendor shall not allow any extensions to the prior contract. Cheers Jenny[blink]
Jenny Lamberton