Is an accepted offer binding?

Viewing 7 posts - 1 through 7 (of 7 total)

CJMELB
Participant
@cjmelb
Join Date: 2006
Post Count: 8
February 26, 2007 - 12:34 am
Just wondering…….
If you make an offer for a property and it is accepted, I assume you can still change your mind and get out of it. Is this correct? I want to make an offer on this place but have to get it in by 5pm today (according to the agent). I love the place etc but haven’t had the chance to do a building inspection, termite inspection etc.
Thanks.
bren the builder
Participant
@bren-the-builder
Join Date: 2005
Post Count: 14
February 26, 2007 - 12:50 am
Our understanding is that an accepted offer is legally binding although there may be a cooling off period that applies. However you can make an offer subject to your satisfaction with a building inspection and pest inspection with the inspector/s of your choice and if necessary finance approval with the lender of your choice. Regards
bren
ShOw_Me_ThE_MoNeY
Member
@show_me_the_money
Join Date: 2004
Post Count: 80
February 26, 2007 - 12:50 am
When you accepted the offer did u specify the following:
1. Subject to Finance
2. Subject to Building Inspection
3. Subject to Finance Inspection
My understanding is that we can put these clauses to safeguard ourselves
CJMELB
Participant
@cjmelb
Join Date: 2006
Post Count: 8
February 26, 2007 - 1:08 am
I actually haven’t put the offer in yet but I have to by 5pm today because the agent says that someone else has made an acceptable offer.
The agent gave me a ball-park price that I would need to match but also said that I could win out by offering a shorter settlement period. Correct me if I’m wrong but the usual settlement period is 60 days?
ShOw_Me_ThE_MoNeY
Member
@show_me_the_money
Join Date: 2004
Post Count: 80
February 26, 2007 - 1:47 am
Yes the usual settlement is 60 days. You can ask the agent how much settlement period has the other person asked for. This could help you make a wise decision. And when you make the offer make sure you have the clauses “Subject to….” before you sign on the dotted line.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
February 26, 2007 - 12:05 pm
With contract law an offer is binding if accepted, but in the sale of land the contract can only be enforced if it is in writing. ie. contracts exchanged. Without your signed contract they cannot enforce it.
Terryw
Discover Home Loans
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Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 26, 2007 - 5:35 pm
Be aware that some agents are unscruplous and such an agent could be trying to manipulate both the size and timing of your offer by suggesting a second buyer.
Of course he could be honest too ….
But don’t let him influence your decisions too much [blush2]
Simon Macks
Residential and Commercial Finance Broker
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0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.