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.Scott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,856
There is no acceptance so so contract. Withdraw asap
The seller has accepted our offer. How do we withdraw without losing our depositAilimeParticipant@ailimeJoin Date: 2008Post 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.Jamie MooreParticipant@jamie-mJoin Date: 2010Post Count: 5,069
Same thing happened with us. The REA told us to show that we were serious buyers. How did you get out of the contract?
Did you seek legal help or terminated the contract with a written letter on your own?
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?AilimeParticipant@ailimeJoin Date: 2008Post 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.Jacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539Ailime 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.
Thank you JacM, a lesson (expensive one) well learnt today.CatalystParticipant@catalystJoin Date: 2008Post 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.IntrigueMember@intrigueJoin Date: 2010Post 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)TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
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.Scott No MatesParticipant@scott-no-matesJoin Date: 2005Post Count: 3,856
And do it tomorrow not next week or it will be too late.DerekMember@derekJoin Date: 2004Post Count: 3,544
What state – some states have cooling off periods, others don't.WomeninPropMelbMember@womeninpropmelbJoin Date: 2008Post 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 offTerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
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.DerekMember@derekJoin Date: 2004Post 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" .
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'