Can we pull out of contract?

Discussion in 'The Buying & Selling Process' started by Timothy_12345, 30th Jun, 2018.

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  1. Timothy_12345

    Timothy_12345 Member

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    Hi everyone,

    My girlfriend and I recently put an offer on a house here in WA and we want to know our current options.

    Our offer was 1 of 3 and the seller chose to go with us. She counter offered and we accepted the counter offer and initialled the o&a form.

    We got a message saying congratulations, etc but she has told us the o&a form will be signed at a later date.

    Are we able to pull out of the offer if we accepted the counter offer and we got a message stating it had been accepted but the o&a has not been signed by the seller?

    Thanks in advance.
     
    Timothy_12345, 30th Jun, 2018
    #1
  2. wylie

    wylie Moderator Staff Member

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    wylie, 30th Jun, 2018
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  3. Terry_w

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

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    That would be a clear yes.
     
    Terry_w, 30th Jun, 2018
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  4. Timothy_12345

    Timothy_12345 Member

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    Does it matter than we knew it was going to get signed at a later date? The agent told us at the time of us signing the contract.
     
    Timothy_12345, 30th Jun, 2018
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  5. Noobieboy

    Noobieboy Well-Known Member

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    You need to notify them of withdrawal in writing before you get signed papers back. Not an advice.
     
    Noobieboy, 30th Jun, 2018
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  6. Timothy_12345

    Timothy_12345 Member

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    The seller wants to sign off tomorrow to avoid tax in this financial year
     
    Timothy_12345, 30th Jun, 2018
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  7. wylie

    wylie Moderator Staff Member

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    Is the seller trying to avoid land tax?
     
    wylie, 30th Jun, 2018
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  8. Timothy_12345

    Timothy_12345 Member

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    They're obviously trying to avoid some sort of tax and the laws must be different in FY19
     
    Timothy_12345, 30th Jun, 2018
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  9. Terry_w

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

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    Get some legal advice.

    If you have made an offer on a signed contract you can pull out prior to the other party accepting your offer. Contracts for land generally have to be in writing to be enforceable.

    The problem you may face is they could sign after you have told them you are pulling out and pretend they signed it before.
     
    Terry_w, 30th Jun, 2018
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  10. Trainee

    Trainee Well-Known Member

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    So why do you want to pull out?
     
    Trainee, 30th Jun, 2018
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  11. Terry_w

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

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    CGT would be based on the contract dates.
     
    Terry_w, 30th Jun, 2018
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  12. Timothy_12345

    Timothy_12345 Member

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    The ace in our hand is that they cant sign after our notification as they want to sign it in the new financial year, which is tomorrow
     
    Timothy_12345, 30th Jun, 2018
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  13. wylie

    wylie Moderator Staff Member

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    But land tax for WA appears to be like Queensland insofar as who owns the land on 30 June pays the tax. So signing a contract before 30 June wouldn't make any difference in WA, would it?
     
    wylie, 30th Jun, 2018
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  14. Timothy_12345

    Timothy_12345 Member

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    The contract is going to be dated for tomorrow when the seller signs
     
    Timothy_12345, 30th Jun, 2018
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  15. wylie

    wylie Moderator Staff Member

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    Whatever their reason, they aren't going to be happy to lose a buyer. Do you have a solicitor working for you?
     
    wylie, 30th Jun, 2018
    #15
  16. Timothy_12345

    Timothy_12345 Member

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    No unfortunately not and being a saturday i doubt id be able to find one
     
    Timothy_12345, 30th Jun, 2018
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  17. wylie

    wylie Moderator Staff Member

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    wylie, 30th Jun, 2018
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  18. Timothy_12345

    Timothy_12345 Member

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    Done. Thanks
     
    Timothy_12345, 30th Jun, 2018
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  19. Terry_w

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

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    You have a few hours left
     
    Terry_w, 30th Jun, 2018
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  20. Trainee

    Trainee Well-Known Member

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    Then its not a land tax thing. Its CGT.
     
    Trainee, 30th Jun, 2018
    #20
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