All Topics / Help Needed! / Submitting Offers

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  • Profile photo of Genesis01Genesis01
    Member
    @genesis01
    Join Date: 2003
    Post Count: 56

    Hi All;

    If I submit an offer on a property, is it set in concrete if it is accepted.

    IE: If I make multiple offers on multiple properties, am I obligated to proceed with all those offers accepted.

    If an offer is accepted, am I then bopund to proceed & sign the contract.

    Regards
    Daryl

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    No.

    Nothing is concrete until contracts are signed and exchanged. At least in NSW that is. I am pretty sure that a verbal offer is not binding in any state.

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
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    Profile photo of Genesis01Genesis01
    Member
    @genesis01
    Join Date: 2003
    Post Count: 56

    Does this still apply if the offer is in writting?

    Regards
    Daryl

    Profile photo of v8ghiav8ghia
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    @v8ghia
    Join Date: 2005
    Post Count: 871

    Hi Daryl. Depends where it is. Where are you? In tassie for example, your offer is actually made on the contract, but naturally you can /would insert a clause or two to protect yourself. A due dilligence clause, or subject to buyer being satisfied with whatever type ones cover you here. If the offer is made in writing not on a contract though, nothing is 100% definate until a contract is signed. There’s always ethics too though. If you advise what state you are talking about can get you specific info if you want. All the best too![strum]

    Profile photo of joshadelsajoshadelsa
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    @joshadelsa
    Join Date: 2006
    Post Count: 53

    I think in south australia there’s a cooling off period after offer is accepted in which you can pull out if you like before contract is signed. I just had 2 offers accepted however didn’t take too much notice as I was definately going to buy them, unless building or pest inspection came in with devastating results.

    Depends on what state….

    joshua

    Investor Finance
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    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    You have t be very careful with making a written offer.

    In Australia contracts involving land need to be in writing (eg. CONVEYANCING ACT 1919 – SECT 54A).

    There is no requirement for this contract to be a properly drawn out contract. As long as certain requirements are met (property identified, parties identified, and price = the 3 Ps), the contract could be binding if it is accepted.

    There have been cases where these reqirements were written on the back of an envelope and it was a binding contract.

    Actually, a contract for land can be verbal. However, if it is not in writting, it cannot be enforced.

    for NSW see, http://www.austlii.edu.au/au/legis/nsw/consol_act/ca1919141/s54a.html

    Terryw
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    Parramatta
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    Profile photo of RealEstateQueenRealEstateQueen
    Member
    @realestatequeen
    Join Date: 2005
    Post Count: 69

    It does depend on what state your in, find your local REI, they will probably have an information line, and they will be able to tell you the law in our state.
    im just wanting to confirm about SA. You can make a written offer, and while i guess it would be considered binding, if you are writing the offers properly, you would have a clause in there.
    Example: Subject to Purchasers satisfactory finance approval. Make sure you say its to the purchasers satisfaction. If you leave it open like ‘subject to satisfactory finance’, who is it satisfactory to? Ive heard stories where someone tried to pull out using a finance clause, using the open example above, and the vendor turned around and offered finance at something ridiculous like 30% for 30 years or something like that. So in the end they were forced to buy it and try hard for finance through a bank!
    Read as much as you can about it. Plenty of info available in books with the negotiating powers offers can have.
    Also, dependant on your state, but in SA, never let an agent not accept your written offer. They are required by law to accept all written offers and present them to their vendor. Many agents will tell you otherwise and try and get you to sign a contract!
    This is why i go to opens with a pre-written offer, with all my conditions on there. Saves time and makes it easier for the agent to accept it.
    Also, you shouldnt worry too much about having to pull out of offers. If all your offers are being accepted, then your price is too high! The whole point of offers is to negotiate either a good price or good terms! You might make 20 offers, and have only 2 accepted. If your getting more than that, then your offering too much!!!

    Good luck!!!!!!!!!!

    Profile photo of Genesis01Genesis01
    Member
    @genesis01
    Join Date: 2003
    Post Count: 56

    Thanks all, for your comments.

    The property we are considering buying is in NSW.

    What is the proceedure for submitting an offer via a contract rather than on an ‘offer sheet’.

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