Advice on putting unconditional offer on a Private sale

Discussion in 'The Buying & Selling Process' started by Gypsyblood, 4th Jun, 2017.

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  1. Gypsyblood

    Gypsyblood Well-Known Member

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    Thank you!
     
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  2. neK

    neK Well-Known Member

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    @Perthguy
    That's how it works in Sydney.
    Unconditional = 66W = Waiving of cooling off rights = Done deal = agent collects their commission

    Whereas if you simply sign the contract and give the 0.25% deposit and have your cooling off period that is not considered unconditional because you can still back out (though you do lose your 0.25% deposit though).

    Maybe some BA's can clarify?
    @Propertunity @Jacque @Simon L @DaveM
     
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  3. neK

    neK Well-Known Member

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    Interesting. This is Melbourne right?
    Learn something new every day. :)
    If i was selling my place and the agent said "I've got an unconditional offer", my next question would be "where's the 66W"
     
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  4. Perthguy

    Perthguy Well-Known Member

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    Do they have 66W in Victoria?
     
  5. neK

    neK Well-Known Member

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    No idea. I was referring to NSW :)
     
  6. Perthguy

    Perthguy Well-Known Member

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    Your post actually didn't make that clear.

    @Gypsyblood is buying in Victoria, so advice about NSW legislation is not relevant to the situation. In Victoria, an unconditional offer does not waive the cooling off period and 66W does not apply.
     
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  7. Gypsyblood

    Gypsyblood Well-Known Member

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    Thank God for that!
     
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  8. Gypsyblood

    Gypsyblood Well-Known Member

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    Yep Melbourne.. Thank God. Buyers can't play in NSW! Learn something new everyday is right :) so did I
     
  9. DaveM

    DaveM Well-Known Member

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    In SA you can have an unconditional offer ie no finance, b&p, subject to sale etc and still have cooling off.

    Sa cooling off does not start at contract signing but upon serving the Form 1 (vendor disclosure document) on purchaser. This can take 1-7 days depending on how organised the agent is.

    You can waive cooling off but I have never seen it asked for or required
     
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  10. rjw180

    rjw180 Well-Known Member

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    I did but respect your privacy if you're not comfortable posting (feel free to PM - obviously no obligation though). I'm interested in getting a feel for the market as I've only been down there for a day and thought it was a bit of a mixed bag. Some areas seem to be competetive while others were fairly flat (and not just the houso areas either). Hoppers next door seemed more consistently active and sale prices also more consistent. Werribee may be on the way to catching up though?!?

    Haven't purchased yet but it's one area I'm looking at.
     
  11. Gypsyblood

    Gypsyblood Well-Known Member

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    Ah yes sorry :p would like to keep it a bit private but I do want to share that Apparently some companies get clients who want to sell asap and it doesn't even come on the websites. I bought from such a company, the house never went on realestate.com. I can give you the contact of the guy who showed me around the properties, PM me if interested. He was a great guy!

    Agree prices are weird here, similar thing a street away can be 20k-40k less. Couldn't figure out whether it's cz the market is still deciding it's price point or if I am missing the bigger picture
     
  12. The Y-man

    The Y-man Moderator Staff Member

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    Yup - and for those looking at adverts, this is why te agents put an "under offer" on the ad even if it is an unconditional offer - and only goes to "sold" 3 biz days later.

    The Y-man
     
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  13. WestOz

    WestOz Well-Known Member

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    I always believed it was "under offer" until finance approved.
     
  14. Jacque

    Jacque Jacque Parker Premium Member

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    Yes @neK you are 100% correct (though agents can't collect their commission technically until the order on the agent is processed at settlement :)) and NSW has some of the most stringent contract conditions in Australia, unfortunately. An unconditional contract here means just that- no backing out from either party and if the purchaser elects to, they not only run the risk of losing their 10% deposit altogether but any financial losses incurred by the vendor upon resale, should they wish to pursue. In other words, here in NSW DO NOT ENTER INTO AN UNCONDITIONAL CONTRACT without legal advice and knowing what it means. Every state is different.
     
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  15. The Y-man

    The Y-man Moderator Staff Member

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    Normally yes - but in the case of an unconditional offer, there is no finance clause, so it is binding for the buyer whether finance approved or not.
    So it is under offer only for the cooling off.

    The Y-man
     
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  16. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Congratulations @Gypsyblood
    Sounds like a great purchase
     
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  17. Gypsyblood

    Gypsyblood Well-Known Member

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    Thank you!
     
  18. 7434

    7434 Well-Known Member

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    Hi Xenia,
    what's the interest in going unconditional?

    If someone can't organise their finance everyone loses.

    If someone has to cool off in 3 days, they only pay $1000 fee for a $500,000 house.

    All the normal advice says not to go conditional, but I just don't understand (other than faked urgency, akin to a line outside an empty venue) why there's so much pressure to go unconditional.

    As a vendor, I'd want someone with their deposit ready and their prefinance approved, I would be more balanced in the conditional/unconditional approach though, but it seems all but one of our offers have been pressured into unconditional.
     
  19. Xenia

    Xenia Well-Known Member

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    I'm not sure what you are asking Alistair?

    Off course you want purchasers with Fianance approved.

    We were not talking about a finance clause here, we were talking about not adding a building inspection as an additional condition.

    If an offer is made on a property and it's a cash unconditional, ie offer not relying on finance, its favoured by vendors because it means that the property will go unconditional right after cooling off ends instead of relying on fulfilling a finance clause.

    Vendors will sometimes choose a lower offer that is cash unconditional over a higher one that has a finance clause or other clauses. It's cleaner and provides more certainty.

    Not sure if that is what you asked but hope that helps.
    X
     
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  20. The Y-man

    The Y-man Moderator Staff Member

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    1. A pre-approved finance only give a general indicaiotn the person *may* possibly be able to get the loan. As a vendor, you are better of with someone who is willing to lock in the contract.

    2. either conditional or unconditional get a cooling off regardless. In the case of a finance condition, you are effectively extending the "cooling off" by whatever the buyer asks for (2 weeks, 3 weeks etc) at the end of which without ANY penalty (no fees, nudda) exit the contract and may reclaim all deposit etc. Vendor has had to take house off market for that period (not just 3 days)

    3. if an unconditional buyer fails to arrange finance and purchase falls through, vendor keeps property, deposit (10%), and pursues the so called purchase for costs, such as additonal holding costs, marketing etc

    The Y-man
     
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