Join Australia's most dynamic and respected property investment community

Details on offer document

Discussion in 'The Buying & Selling Process' started by Burramys, 21st Aug, 2016.

Tags:
  1. Burramys

    Burramys Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    89
    Location:
    Melbourne
    I was at OFIs yesterday and a friend had an offer document. The friend's view was that the only contact needed was an email. My offer documents have name, address, email, phone and the usual sort of offer information, such as property address, amount, conditions (finance, inspection) and when the offer lapses.

    Advice is sought: what information on such a document is essential or recommedned? TIA.
     
  2. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

    Joined:
    9th Jul, 2015
    Posts:
    1,078
    Location:
    Perth
    Why would you want to limit the ways and means of communication?

    My thinking is if someone involved in the transaction needs to contact me then make it as easy as possible.

    Is your friend one of these people who want to limit their online footprint?
     
    Perthguy likes this.
  3. MrFox

    MrFox Well-Known Member

    Joined:
    20th Aug, 2015
    Posts:
    139
    Location:
    Melbourne
    What is an offer document exactly? Expression of interest?
     
  4. Burramys

    Burramys Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    89
    Location:
    Melbourne
    My friend is indeed cautious, but when dealing with REAs or any business person then all details should be provided. The offer document says that the person makes an offer of $D for a property, perhaps with a cheque or agreed deposit. I've used them and they provide legal certainty - in writing. An unconditional written offer is probably more likely to be believed than an oral one. Also, the short deadline - invariably 5 pm on the next business day - keeps things moving.
     
  5. MrFox

    MrFox Well-Known Member

    Joined:
    20th Aug, 2015
    Posts:
    139
    Location:
    Melbourne
    I think what you are talking about is Expression of interest document which will not give you any legal certainty. Its not an offer unless its on a contract that the vendor can counter sign. Are you using it because the Section 32 is not in yet?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,989
    Location:
    Sydney
    Only a name is needed for a valid contract.
     
  7. Burramys

    Burramys Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    89
    Location:
    Melbourne
    The document seem to me to be an offer. The REA knows that I'm interested, and this is quantified, to be presented to the vendor. The idea is to give the vendor legal certainty, an offer in writing. If the vendor accepts the offer it will be more certain. In a number of cases I've had to add "subject to provision of a section 32". Whatever the document is called, what details should be on it?
     
  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,989
    Location:
    Sydney
    Idendtity of The land
    Identity of the vendor
    Identity of the purchase
    Purchase price
     
  9. Burramys

    Burramys Well-Known Member

    Joined:
    28th Jun, 2015
    Posts:
    89
    Location:
    Melbourne
    The offer aka EOI worked. There were about eight people at the OFI. As far as I could see, nobody else made a written offer. Much rushing about today to sign the contract note and pay the deposit ... $2000.
     
    MrFox likes this.
  10. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,505
    Location:
    Sydney
    congratulations!