Counteroffer process WA

Discussion in 'The Buying & Selling Process' started by BlackJack09, 1st Jul, 2020.

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  1. BlackJack09

    BlackJack09 Member

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    Hi there

    We are working through settlement process for a house we are buying and have some concerns about the process the realestate agent followed.

    Can you please help me understand the process for putting in a counteroffer?

    Scenario - we submitted an offer in writing, realestate agent then took the offer to the seller and realestate agent verbally responded with The seller’s counter offer. We requested to respond with another counteroffer in writing but we’re told it is ok to be verbal and we will sign at the end. This verbal negotiation went back and forth a few times and a few days passed.
    All of a sudden on the 3rd day of negotiation, the realestate agent told us another offer had been presented on the property and he had a responsibility to present this to the seller. We were sent a “Multiple Offers Acknowledgement form” to sign and were told to put in our final and highest bid as the seller would review our final offer in addition to the second offer from another bidder. We were told the seller may choose the other offer over ours so important that it is as high as possible?

    Is this standard procedure in WA? Is another offer allowed to be presented and potentially accepted during the counteroffer process?
     
  2. Big Daddy

    Big Daddy Well-Known Member

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    Hi. Standard procedure for counter offer.

    Not legal for them to start working with another offer unless you sign that form which is not heard off.

    I can't give you advice but I wouldn't sign that form.
     
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  3. Big Daddy

    Big Daddy Well-Known Member

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    To me it sounds like there is no other offer and your taking to long. I usually counter and recounter the same day. Three days is quite long unless they are dragging it along which means they are shopping for other offers with your offer.
     
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  4. BlackJack09

    BlackJack09 Member

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    Thanks for response Big Daddy! Appreciate your advice re typical frequency to counteroffer!

    re the multiple offers form. Can you please confirm if this form is not signed, the seller is not able to accept a better offer if it comes along? Is this gazetting?

    Keep in mind the counteroffer negotiation was verbal and only at acceptance point were we given the contract with all counter offers listed and a request to initial and date each counteroffer.
     
  5. thatbum

    thatbum Well-Known Member

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    Its standard practice everywhere that this is allowed.

    You don't have a contract yet - why wouldn't they be allowed to accept a different offer?
     
  6. BlackJack09

    BlackJack09 Member

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    We presented our offer in writing on a contract that was signed by us (buyer) and were engaging in a negotiation process on price (counteroffer)

    does this change anything?
     
  7. thatbum

    thatbum Well-Known Member

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    So you've offered. And they've rejected your offer and made their own offer.

    ...so not yet a contract.

    Why would the above mean they couldn't sell to someone else?
     
  8. BlackJack09

    BlackJack09 Member

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    Keen to understand - Big Daddy and that bum you have said different things. Can you please discuss?
     
  9. Big Daddy

    Big Daddy Well-Known Member

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    Can someone else chime in? I was under the impression once you have signed a contract but it's not accepted then the agent can NOT deal with anyone else until he is finished dealing with the first buyers offer. He can only move to the next buyer by declining the first buyers offer or not countering.

    The key term here is ' once negotiations have started'

    The agent can present any offers in any order to the agent but once they start negotiating with a buyer they can't switch until negotiations have ended. Either accept, reject or counter offer will end the negotiations.

    If they have not countered, have another offer and have started negotiating with another buyer then you are out of the picture. If so they are just using you to get the other buyer to increase their offer.
     
    Last edited: 2nd Jul, 2020
  10. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I believe because they did not put their counter offer in writing you are effectively not in active negotiation. If they had countered in writing and it was with you to then accept or re-counter then I don't think they would be able to entertain another offer.
     
  11. thatbum

    thatbum Well-Known Member

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    Odd, where's all these ideas come from? Anytime before a written O&A is signed and countersigned, a seller can pretty much do whatever they want.

    There's only two small caveats on the above. A seller has to be careful to not make any pre-contractual promises that a buyer might rely on to the buyer's detriment. And a seller has to be careful about having more than one "live" written offer at the same time because they could be both accepted at the same time in theory.

    Maybe that last one is the confusion.
     
  12. Big Daddy

    Big Daddy Well-Known Member

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    No it's definitely they can't negotiate with more than one buyer at a time. But I can't recall where I have heard that info and I can't find the legislation. There is no Gazumping in WA I believe.
     
  13. BlackJack09

    BlackJack09 Member

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    Thanks for the discussion above!
    I have contacted REIWA as well and they have organised to phone me mid next week. I will update this post with what information I am told next week.
     
  14. thatbum

    thatbum Well-Known Member

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    REIWA don't give advice. Even if they for some reason do next week, I don't think they would be legally qualified to.
     
  15. BlackJack09

    BlackJack09 Member

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    Where do you suggest I go for a concrete answer?
     
  16. thatbum

    thatbum Well-Known Member

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    Your conveyancing solicitor probably. Why do you even need a concrete answer? I don't see how it would help you right now.