How do i add a cheque or cash advance to my offer to entice the vendor

Viewing 4 posts - 1 through 4 (of 4 total)

troy1888
Member
@troy1888
Join Date: 2005
Post Count: 4
April 5, 2011 - 12:20 pm
Hi Everyone,
I would like to use a strategy a read about some time ago where you attach a cheque of say 5k to your offer to purchase and the cheque is cash-able upon acceptance of the offer.
Im making an offer on a property in nsw and think this added little carrot will help seal the deal but im not sure exactly how to go about it.
Do i add a clause?
How do i word it.
Is this something a solicitor should do?
Im pretty sure this is a strategy steve used many times although not 100% sure so im hoping someone on this forum has used it and can share there knowledge and experience.
Thanks in advance guys.
angelinsydney
Participant
@angelinsydney
Join Date: 2011
Post Count: 270
April 5, 2011 - 8:39 pm
Hi troy1888,
The cheque says one thing to the agent and the vendor, “He is serious.” This is massive because every vendor wants a guaranteed sale.
Every offer can be subject to anything you can think of:
1. Subject to unconditional loan approval
2. Subject to inspection reports
3. Subject to valuation (especially if borrowing lots of money)
You must do all your due diligence before the 5 days colling off period lapses.
All the above can be done within that time frame.
Angel
ALF1
Participant
@alf1
Join Date: 2011
Post Count: 237
April 6, 2011 - 12:30 am
G'day Troy.
Is this cheque on top of your agreed deposit amount? Is the $5k simply your deposit? Is this cheque made out to the Vendor directly? You must be careful here. When a contract is drawn ias a formal offer to the Vendor (usually by the real estate agent) an agreed deposit amount is written in to show the Vendor how serious your offer is. The higher the deposit, the perception to ther Vendor is that it is ALOT harder for you, the Purchaser, to simply walk away from the deal. Also, monies offered in the form of a deposit for the purchase of residential property MUST be held in trust by the real astate agent, conveyancer, lawyer, etc. and cannot be released until the conveyancer/lawyer has settled the property and titles have changed names.
I hope this has helped.
troy1888
Member
@troy1888
Join Date: 2005
Post Count: 4
April 6, 2011 - 2:15 pm
Hi Alf1,
Thanks for taking the time to reply
The 5k wouldn't be the deposit it and yes i think the cheque is made out to the vendor directly.
So i guess its just the cherry on top to make your offer harder to turn down.
As i said i read about the trick a couple years ago and was hoping someone on here had used the tactic and could spell it out for me as i share your concern especially for someone with little experience like myself.
Troy