All Topics / Help Needed! / written offers

Viewing 13 posts - 1 through 13 (of 13 total)
  • Profile photo of charlie123charlie123
    Participant
    @charlie123
    Join Date: 2007
    Post Count: 19

    Hi All,

    When one makes multiple offers for different properties at the same time, what is the best technique to use so that in the unlikely event that they should all be accepted one would not have to find the funds to settle on all the deals and instead could choose the one that they would most like to pursue?

    Profile photo of propertypowerpropertypower
    Member
    @propertypower
    Join Date: 2006
    Post Count: 312

    Make sure you include enough clauses to get out of a deal if too many of your offers get accepted. Personally, I don't have more than 2-3 offers at any given point in time and always have date/time after which my offer is not valid.

    Profile photo of JONCHUJONCHU
    Member
    @jonchu
    Join Date: 2004
    Post Count: 112

    Hi there, propertypower makes a good point, have a clause that allows you to pull out, something like, subject to my partners approval…

     

    Also, if you get more than a couple offers accepted, it means you are offering too much money.

     

    Happy investing

    Profile photo of MrmanMrman
    Member
    @mrman
    Join Date: 2004
    Post Count: 18

    I was under the impression that even if your offer is accepted your not legally bound to it as you have not signed a contract or paid a deposit. Sureley there is nothing wrong with saying "Sorry I have decided to retract my offer as i have found a better deal"

    George

    Profile photo of mrtrollmrtroll
    Member
    @mrtroll
    Join Date: 2003
    Post Count: 4

    Hi George,

    If you enter into a written contract (with another party ), you are legally bound subject to those terms and conditions stipulated in the contract, you need to be careful not proceeding should you find a bettter deal, even if you have not paid the deposit you can still be at risk legally, the seller is entitled in some cases to request for witten evidence to finance applications etc

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

    An offer is not binding.

    A contract is although you can exercise your cooling off option.

    You need to understand this a little more before you get to a stage of making multiple offers.  I suspect that if you are making multiple offers you have either stumbled onto something really special or you are not being discriminating enough in your selection.

    Cheers,

    Profile photo of AstrawanAstrawan
    Participant
    @astrawan
    Join Date: 2007
    Post Count: 27

    This question comes from from the other shoe so to speak – if you put an IP up for auction and it got sold on Auction day but then you have second thoughts… what if any are cooling off periods, do they apply to auction and how long to they last for in VIC?

    Thanks for your help

    Astra

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    An auction is just that – certainty of a sale at or above an agreed price. Willing buyer & Willing Seller etc. In NSW there is a Section 66W (or something along those lines) which allows a purchaser to waive the cooling off period however this does not apply in the case of an auction.

    There would be bedlam if an auction didnot provide finality. Think of all of that marketing etc paid for no result. What you may consider are two different scenarios – not advising the agent of the reserve price (this allows you to keep some degree of control by making the agent refer the highest bid to yourself and then enter into negotiation for the sale (the property must be genuinely up for sale) alternatively you can use your vendor's bid – this may kill the auction or elicit one overly keen buyer. Another approach would be to reserve the first and last rights to purchase (even though you own it), this will prevent many from bidding as they have no certainty of winning at the auction.

    Profile photo of AstrawanAstrawan
    Participant
    @astrawan
    Join Date: 2007
    Post Count: 27

    We were the seller and gave the ok for a sale at less than reserve price over the phone whilst the auction was happening. Settlement is two months away.. is there any way to get out of it now?

    Pretty silly, but after making enquiries we are dead sure that the property was under-sold – btw, there was only the one bidder and  we weren't there as we're overseas.

    Profile photo of diclemdiclem
    Member
    @diclem
    Join Date: 2003
    Post Count: 537

    Astrawan, If you signed a contract I don't think you can get out of it now, best you talk to your solicitor.

    In Victoria, I'm pretty sure there is no cooling off period if you sign a contract 3 days before and 3 days after an advertised auction date. I also thought the cooling off period was for the purchaser, not sure if applies to the vendor? Anyone else know?

    Profile photo of AstrawanAstrawan
    Participant
    @astrawan
    Join Date: 2007
    Post Count: 27

    Thank you diclem for your input – and I suppose now we'll just have to go through with it. We nominated someone to have power of attorney who has signed it on our behalf so expect that it is all signed, sealed and will be delivered at settlement.

    Suppose there is no possibility of the purchaser defaulting on something and allowing the contract to fall through though would there? mm but then why would he as he can turn around put it back on the market the following day and make another 100 k on top  .

    An extremely painful lesson which I will definitely not forget in a hurry – never trust the Real Estate agent!

    Profile photo of diclemdiclem
    Member
    @diclem
    Join Date: 2003
    Post Count: 537

    Astrawan, please speak to a legal professional to confirm that nothing can be done.

    I guess there is a possibility that the purchaser finance may fall through….but as i said speak to a professional.
    Best of luck

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    As I noted Astrawan, Willing Buyer & Willing Seller – unfortunately it sounds like you were too willing to listen to your agent (who's only real concern is getting his $ at the end of the sale – no sale meand no $).

    Consult your solicitor however I don't believe that you can get the agent for misleading or misrepresentation if you have agreed to drop your price by $100k

Viewing 13 posts - 1 through 13 (of 13 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.