can the agent cancel a signed contract if they receive a better offer?

Discussion in 'The Buying & Selling Process' started by bucknaked007, 12th Jul, 2020.

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  1. bucknaked007

    bucknaked007 Member

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    Hi

    so if we sign the contract on an agreed price, within the cooling off period if the agent receives a better offer, can he cancel our contract?
     
    bucknaked007, 12th Jul, 2020
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  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Have both parties signed?
    Agents don't cancel contracts, sellers cancel contracts. But I don't think they can during cooling off
     
    Westminster, 12th Jul, 2020
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    The agent is not a contracting party. If the vendor has accepted the offer then a contract is in place and they would generally not be able to accept a higher offer.
     
    Terry_w, 12th Jul, 2020
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  4. bucknaked007

    bucknaked007 Member

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    Hi thanks for replies

    nothings signed as yet, I'm trying to put the pressure on, the agent is shy of his desired price and is stalling waiting for a better offer to come through
    I've put a time limit on my offer, sign as sold or I walk
    wanted to know whether they could sign but them ultimately pull out if the better offer comes through

    appears not, thanks
    I hate doing this stuff but you gotta play the game huh?
     
    bucknaked007, 12th Jul, 2020
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  5. balwoges

    balwoges Well-Known Member

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    Contract has to be signed by Vendor and Buyer to be a valid contract ... Vendor can accept another offer if he hasn't signed a Contract. Unfortunately this can and does happen - its called being 'gazumped'.
     
    balwoges, 12th Jul, 2020
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  6. wylie

    wylie Moderator Staff Member

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    This is why in Queensland we tend to go straight to the actual contract. I know an agent who moved from Brisbane to Sydney and it took a while to get used to the gazumping that went on when things are done by offer letter and not straight to contract (my understanding anyway).
     
    wylie, 12th Jul, 2020
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    In NSW signing is not enough, the contracts need to be exchanged as well
     
    Terry_w, 12th Jul, 2020
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  8. wylie

    wylie Moderator Staff Member

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    I always thought agents were just being polite when they would have you sign a contract to purchase, take it to the vendor and once both signatures were on the contract, we'd get a formal phone call from the agent "Congratulations... you've bought a house".

    Then my mother became an agent, and it seems this acceptance and signature must be conveyed to the party/parties involved.

    I don't know if this still is the case. Anyone know (Qld)?
     
    wylie, 12th Jul, 2020
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  9. Mark F

    Mark F Well-Known Member

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    There are interesting bits of contract case law about offer and acceptance being communicated. They often revolve around the timing of posting a letter - or maybe this just shows how long ago I did the course. Instant communications resolves many of the problems where one or other party to the contract act by assuming/without knowing whether the contract has been brought into existence.
     
    Mark F, 12th Jul, 2020
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  10. balwoges

    balwoges Well-Known Member

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    Ooops, forgot that part - you are quite right ... :D
     
    balwoges, 12th Jul, 2020
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  11. bucknaked007

    bucknaked007 Member

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    interesting, thanks all
     
    bucknaked007, 12th Jul, 2020
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  12. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Paul@PAS, 13th Jul, 2020
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  13. TMNT

    TMNT Well-Known Member

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    i doubt most people would be asking their legal advisor whether they can get gazumped unless it had happened to them before, if you asked the legal advisor every single possible scenario, you'd send them into retirement in the bahamas
     
    TMNT, 13th Jul, 2020
    #13
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