All Topics / Legal & Accounting / Can I make an offer?

Viewing 10 posts - 1 through 10 (of 10 total)
  • Profile photo of Jase and FlicJase and Flic
    Participant
    @jase-and-flic
    Join Date: 2004
    Post Count: 190
    July 11, 2005 - 8:50 am

    HI all
    If I make an offer on a property that is unconditional, but I have not yet organized finance, what are the possible outcomes for me? ie. what is the worst that can happen?

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231
    July 11, 2005 - 12:02 pm

    DONT DO IT!!!!

    If you make an unconditional offer, it is your signature and reputation that you are able to buy.

    The worst that can happen is they can force you to buy by court order. You may have to declare yourself bankrupt to prove that you can’t and you can kiss the rest of your investing career goodbye!!!

    We buy properties in all conditions. Can offer Immediate Cash Settlements, No Real Estate Agents Required
    [email protected]
    phone 0412 437 582

    Profile photo of Jase and FlicJase and Flic
    Participant
    @jase-and-flic
    Join Date: 2004
    Post Count: 190
    July 12, 2005 - 7:45 am

    So you should never buy without finance pre-approved?

    Profile photo of JKMJKM
    Member
    @jkm
    Join Date: 2005
    Post Count: 82
    July 12, 2005 - 8:10 am

    The most I have ever done is put a holding deposit without having finance approved. But as this indicates, a holding deposit is just that, if I choose not to go ahead it is refunded to me in full.

    You should not sign a contract without finance, like Dr X has already warned.

    Profile photo of Jase and FlicJase and Flic
    Participant
    @jase-and-flic
    Join Date: 2004
    Post Count: 190
    July 12, 2005 - 8:24 am

    Thanks all.
    I wasn’t really planning to sign such an offer, but just curious about the idea
    Cheers

    Profile photo of Old School SkataOld School Skata
    Member
    @old-school-skata
    Join Date: 2001
    Post Count: 52
    July 13, 2005 - 1:17 am

    i have just signed a contract for a place (finance approved) but the agent made mention of a 5 day cooling off period from the date of signing if i change my mind for whatever reason. I am pretty sure a fee was charged on this being 0.47% (QLD).

    Speak to your local Real Estate Insitute office – REIQ here in qld

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733
    July 13, 2005 - 2:36 am

    I’ve also been told..

    If you use “subject to finance” clause as a way out be careful the vendor does not offer to finnace you if you then try to use ‘unable to get finance’ as your way out..

    “Money is a currency, like electricity and it requires momentum to make it Effective”
    Count The Currency With This Online Positive Cashflow Calculator

    Profile photo of Old School SkataOld School Skata
    Member
    @old-school-skata
    Join Date: 2001
    Post Count: 52
    July 13, 2005 - 11:31 am

    ….which is why you should ad onto subject finance as arranged by myself as purchaser to my satsifaction – i love the interpretation of “satisfaction”…can be very open…don’t like the letter the bank wrote me, i am not happy with 6.78% i was after 6.77% …

    Profile photo of ZZ
    Member
    @z
    Join Date: 2004
    Post Count: 8
    July 14, 2005 - 12:57 am

    In NSW, is the holding deposit (.25%) binding for the vendor?

    Profile photo of jessedgjessedg
    Member
    @jessedg
    Join Date: 2004
    Post Count: 1
    July 19, 2005 - 8:15 am

    Hi,

    I believe the buyer would lose the .25% holding deposit if they back out of the deal prior to the end of the cooling period.

    Once the cooling period ends, you can lose (and must pay) the 10% of the purchase price if you backout by then.

    Cheers,
    Jesse

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