- jewelMember@jewelJoin Date: 2005Post Count: 30
I’ve just found out that the real estate agent I was dealing with (Edited by kay henry: watch for libel, jewel) has held back my offer to the vendor because he knew that there was another person (after me) who was keen on putting an offer forward. This other person was able to supply a $10,000 deposit and all I was willing to put down was $100. I’ve been told by another agent that real estate agents demand a $10,000 deposit so that their commisson is looked after and not because the vendor wants a $10,000 deposit.
After hearing this news I quickly contacted the other agent who has this property listed. I’ve had to go in at $5000 more to be competitive with the other bidder.
Do I have any rights or case in reporting this real estate agent as I have had to put in an extra $5000 and the fact he wasn’t upfront with the vendor.
Please help and pray that the vendors except my offer today (11am) so that I can stick it up (name deleted by kay henry) real estate (don’t forget that name). I’m a firm believer of what goes around comes around and I think (name deleted) is going to confront that today.jewelMember@jewelJoin Date: 2005Post Count: 30
I forgot to mention that the name and real estate agency used in the above story is not real.ANUBISParticipant@anubisJoin Date: 2003Post Count: 559
If agents know they have multiple offers coming they may present them together. Not really a big deal. If I was the vendor I wouldn’t take you seriously offering a $100 deposit.Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493Peace-SunshineMember@peace-sunshineJoin Date: 2005Post Count: 3
Some people are so annoying, Yes you ANUBIS – it is possible to be asset rich and cashflow poor. It doesn’t mean that the vendor shouldn’t take a $100 deposit seriously. Its really frustrating that people like yourself have the right to buy and sell property and make those thoughtless judgements about the integrity and seriousness of buyers.
Get a new attitude and open your mind.
Where is the love?
SunshinecarolshaParticipant@carolshaJoin Date: 2005Post Count: 7
The fact that you think the $10,000 was to ensure that the agent gets paid is so wrong. The agent is the last to be paid, all the other parties are paid first and if there isn’t enough to cover the agents fees, then he/she misses out.Robbie BMember@robbie-bJoin Date: 2004Post Count: 2,493
An agent only misses out if the solicitor or person doing the conveyance is dodgy and does not pay the agent as part of the settlement advice.
This doesn’t bother me that much though as some agents often do the the dodgy on their clients. Pay back is sweet!!!
First Home Buyer WebsitebrahmsParticipant@brahmsJoin Date: 2004Post Count: 485
why don’t you use a deposit bond if your cash is tied up else where?
if i was a seller i’d want a 10% deposit or at least 5% – because if you default on the purchase and don’t complete – i’m gonna keep your cash as compensation for stuffing me around, lost momentum of sale program and for potential further loss in the event i have to sell it for less.
a deposit bond gives the seller confidence as does a cash deposit – the cost of a bond is pretty minimal and should make your offer ‘stronger’and ‘cleaner’.
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneemcdonaldMember@emcdonaldJoin Date: 2004Post Count: 162
Sounds like common enough REA practise to me, were you aware at the time of your offer that there was another party likely to submit one also???stefankoParticipant@stefankoJoin Date: 2005Post Count: 2
…i’m gonna keep your cash as compensation for stuffing me around, lost momentum of sale program and for potential further loss in the event i have to sell it for less…
i am not 100% sure but since all realestate sales have to be in writting, if someone “changes his mind” before signing, you must give him his deposit back by law, coz there was no contract
stefsurreyhughes19905Member@surreyhughes19905Join Date: 2003Post Count: 204
The deposit has nothing (or at least very little) to do with compensation. The deposit is required to make a contract. Contracts must:
– State who is bound by the contract.
– What is being offered
– What the consideration is. (money in return usually)
– Clauses describing the delivery
– Clauses describing the commencment
– Clauses describing the end
– Clauses describing penalties
– Date of signing and signatures of all parties
So a part of that is the consideration, without consideration the contract can be argued in court to not have been commenced. So a deposit is used as an exchange of consideration to bring the contract into force. The deposit is held in trust until the contract has become unconditional (which may be immediate) and so doesn’t belong to the seller until it has been released (by an event such as settlment or all conditional clauses being met etc). So in the case that a contract has gone unconditional, that is all conditional clauses have been met (like inspections, finance and so on) then the contract is in full force and the deposit is now a part of the contract. That means if the buyer pulls out of the contract they have no claim over the deposit. So in that sense it is “compensation” but only so much as if I bought a product, paid for it, then refused to pick it up or take it.
I guess then a $1 deposit would be easy to walk away from but that doesn’t mean the deposit needs to be 10%. A $1,000 deposit would probably be sufficient committment for most property sales.