Forums / Property Investing / Help Needed! / *Help needed ASAP* Deposit left as “Expression of Interest” on a property

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  • Profile photo of ediot123ediot123
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    @ediot123
    Join Date: 2007
    Post Count: 54

    Hi Guys,

    Need your advice.

    We've inspected a property and gave the seller an offer and provided the agent with a deposit as our expression of interest to show we were serious. However after further considerations, we've decided not to go ahead with the purchase.

    Are we in any form of contract atm, or are we entitled a full refund of our deposit.

    We never exchanged contracts, nor received our contract.

    Help please.

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
    Join Date: 2005
    Post Count: 3,850

    There is no acceptance so so contract. Withdraw asap

    Profile photo of ediot123ediot123
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    @ediot123
    Join Date: 2007
    Post Count: 54

    The seller has accepted our offer. How do we withdraw without losing our deposit

    Profile photo of AilimeAilime
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    @ailime
    Join Date: 2008
    Post Count: 28

    When my husband to be and I lost our 0.25% deposit that was because the REA told us that to show our serious interest, we need to sign the contract on the spot. We were still very new and fully trusted the REA. 

    An expensive but valuable lesson for us.

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    ediot123 wrote:
    The seller has accepted our offer. How do we withdraw without losing our deposit

    Hi there

    Did you sign anything?

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of ediot123ediot123
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    @ediot123
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    Post Count: 54

    Same thing happened with us. The REA told us to show that we were serious buyers. How did you get out of the contract?

    Profile photo of ediot123ediot123
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    @ediot123
    Join Date: 2007
    Post Count: 54

    Did you seek legal help or terminated the contract with a written letter on your own?

    Profile photo of ediot123ediot123
    Participant
    @ediot123
    Join Date: 2007
    Post Count: 54

    My partner has signed what I thought to be just a purchase offer. However I'm afraid it may be the actual contract.

    Is a purchase offer, same as signing a contract? – Does this mean this contract is now binding?

    Profile photo of AilimeAilime
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    @ailime
    Join Date: 2008
    Post Count: 28

    From memory, we saw a solicitor who found some problems with the contract. The property was advertised as located in the more sought after suburb, but other documents within the contract showed that it was actually in the cheaper suburb right next to it. The solicitor terminated the contract on our behalf but we still lost the money because we signed the contract.

    Profile photo of Jacqui MiddletonJacqui Middleton
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    @jacm
    Join Date: 2009
    Post Count: 2,539
    Ailime wrote:
    When my husband to be and I lost our 0.25% deposit that was because the REA told us that to show our serious interest, we need to sign the contract on the spot. We were still very new and fully trusted the REA. 

    An expensive but valuable lesson for us.

    Always respond to such a ridiculous statement (the whole "you have to sign a contract to show it is a serious offer") with a stern "I sign nothing without my solicitor first reading it." 

    You can submit your offer either verbally or "in writing" but "in writing" can be email or a few sentences jotted down on a bit of paper, stating your offer price, your terms, and when your offer will expire.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of ediot123ediot123
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    @ediot123
    Join Date: 2007
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    Thank you JacM, a lesson (expensive one) well learnt today.

    Profile photo of CatalystCatalyst
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    @catalyst
    Join Date: 2008
    Post Count: 1,404

    No you don't put 10% down for interest. That comes after the cooling off period. 

    Normal is .25%.

     You don't have to have a reason. Just say you want out. Lose your .25%, walk away.

    For future reference only sign a contract if you REALLY intend on buying it.

    Profile photo of IntrigueIntrigue
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    @intrigue
    Join Date: 2010
    Post Count: 208

    When did hubby sign this document. Would certainly help if we knew what it was.

    My understand is that unless a cooling off period was waved (unlikely) then you can terminate the contract within a set timeframe (QLD 5 days). The agent/seller can claim a .25% penalty fee but rarely do so. (to my understanding)

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
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    What you have signed could be a contract – whether labelled contract or no.

    Seek legal advice asap as you may have a few grounds to termination such as cooling off period and other.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Scott No MatesScott No Mates
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    @scott-no-mates
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    And do it tomorrow not next week or it will be too late.

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544

    What state – some states have cooling off periods, others don't.

    Profile photo of WomeninPropMelbWomeninPropMelb
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    @womeninpropmelb
    Join Date: 2008
    Post Count: 234

    Terryw is correct- states have different cooling off periods.

    And DO what Scottnomates says – get legal advice asap.

    If you are in Victoria – you get 3 days cooling off – that is to take the contract to get legal advice on it.  If the agent has told you to sign it- then I am assuming you have not had legal advice because your solicitor or legal agent would have advised you against this.

    Agents are entitled to take 0.2% as fees. They often do but not always. I had a sale that cooled off and we gave them back the whole deposit. Then we sold the house for more.

    But other states are different. I dont think you would be in this situation in NSW because it seems to work differently there- you need to get building inspections and finance before you exchange contracts- it works differently.

    Good to know Qld has 5 days cooling off

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
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    NSW has 5 days cooling off period too – although this can be waived. If the purchaser pulls out during the cooling off they forfeit 0.25% of the purchase price under the standard contract.

    Terryw | Structuring Lawyers / Loan Structuring Pty Ltd
    http://propertytaxbook.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of DerekDerek
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    @derek
    Join Date: 2004
    Post Count: 3,544

    Going to put my vendors hat on for a moment.

    The vendor has contracted an agent to act in their (the vendor's) best interest and to sell their house for them.

    Real estate transactions in all states are carried out in accordance with the laws in that state which, are in turn, formulated with due consideration to national consumer laws.

    In some places I simply cannot take a $10 widget back and get a refund because I 'changed my mind'

    As a vendor my agent and I know these parameters.

    As a consumer you should too!

    Normally there is a degree of buyers remorse – this is particularly the case when individuals haven't carried out their full due diligence but in your opening comments you claimed, "you were serious" .

    Really?

    How much research did you do? How many properties did you look at? How much legal advice did you get? Was this to be your own home or an investment property?

    Sorry but as adults you both made a decision to sign a piece of paper and pay some money as a consideration towards the purchase.

    It could be that you'll need to put the expense down as 'tuition fees'

     

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