Hi, my first post here. I have made an offer on an apartment in Perth, after some bargaining the seller accepted my offer, because the seller is overseas still, the realestate agent told me instead of having 2 signatures on one O & A, I can show the bank one copy of the O & A with buyers signature (me) and the other with sellers signature on another O & A to the bank so I can get the loan started. He says it is still a legal binding contract and some banks might accept it.
I have doubts about this because legally I believe you have to have both signature on the one form of O & A in order to make it legal. Am I wrong? I did sign it because the price and condition on both O & A forms are the same and the seller's signature are there (on the other O & A)
My question is:
1>is the realestate agent in breach of his obligations?
2>is this still a legal contract? is it valid?
3>if it is not valid because there is only 1 signature on each forms, if I want to get out of the contract (I don't plan to, but just in case), can I get out without any penalties? On the contract there is a condition which I need to pay down a $2000 deposit within 5 days of acceptance, it is now 3 days and if I don't pay the deposit within the specified time, what will happen? Because I don't think I even have a legal contract with me yet therefore I am bit hesitate to make that payment.Your advise will be greatly appreciated.
Best regards
W
I am not sure of the laws in WA, but in NSW it would be ok and it is the standard practice. You sign one contract and give it to the other side and they sign a separate one and give it to you (this is exchange).
You should be using a lawyer before you sign in case you get it wrong.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It's standard practics in NT too. Action-figure, are you using a conveyancer? I would definitely recommend using either a conveyancer or solicitor. It's not worth doing it on your own just to save a few hundred dollars.
Hi Guys, I am using a conveyance for sure, but I also went and get an second opionin on it as well. The answer is it is considered legal as long as banks and settlement agency is happy with it. It is called: Exchange of contracts.
I am very greatful that you guys were able to help me on this, it had me worried for a few days. I know I got a bargain therefore dont really want this one to slip through.
Now I got the contract issue sorted, what else do I need to watch out for since it is my first IP? Any advise will be treasured as words from my Grandfather.
W
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