Expression of interest

Discussion in 'The Buying & Selling Process' started by bucknaked007, 5th Apr, 2020.

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  1. bucknaked007

    bucknaked007 Member

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    Hello all

    I've inspected an apartment and the expressions of interest close on Tuesday

    the agent has sent me a form to fill out

    its actually titled "contract of sale" and is 161 pages...it states it is a legally binding document
    they are also requesting a 10% deposit
    not quite what I was expecting

    Parting with this much cash and signing such a weighty document is making me nervous

    if I get out bid as I fully expect to , do I receive 100% of this back?
    after what period of time?

    is this the norm please?
    P.S I did just email the agent and ask the same questions
     
    bucknaked007, 5th Apr, 2020
    #1
  2. JasonC

    JasonC Well-Known Member

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    What’s does your legal representative say?

    Regards,

    Jason
     
    JasonC, 5th Apr, 2020
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  3. bucknaked007

    bucknaked007 Member

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    Ok, I can see where this is going

    I don't have legal representation Jason, it was just an expressions of interest

    If I did have legal representation i probably wouldn't have reached out to a forum
     
    bucknaked007, 5th Apr, 2020
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  4. rksing

    rksing Well-Known Member

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    I woudnt say it was the norm, but the vendors prefered/recommended process. Think of it like an auction process (not sure if they are requesting to have the cooling off period waved), but what Jason is getting at is you would have the contract reviewed by you legal rep. and negotiate on terms and special conditions prior to bidding. Desposit can be negotiated down. Why not provide the deposit with a cheque?
     
    rksing, 5th Apr, 2020
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  5. bucknaked007

    bucknaked007 Member

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    Hmm, ok it sounds like this isn't a simple process after all
    I'll seek legal advise I guess

    Thanks for your inputs
     
    bucknaked007, 5th Apr, 2020
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  6. The Y-man

    The Y-man Moderator Staff Member

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    @bucknaked007

    This is fairly normal for Victoria.
    What you are participating in is what is normally called a "private sale" (confusing for many as it is not "private" as such).
    The EOI process is no different to what happens in a "private sale" process - basically at the end of the EOI period, the agent will present "offers" to the vendor to select one.

    The "offer" consists of a signed contract and deposit cheque.
    The document you received is the contract attached to the "Section 32" vendor disclosure statement which tells you everything the vendor is required to disclose about the property.

    The reason others have said to contact your legal advisor is that you need to have one chosen anyway by this stage to process the purchase (your conveyancing lawyer ~ although a good conveyancer can do this too, but cannot advise).

    If you are going to make the offer conditional, such as getting finance or a building inspection these need to be completed on the offer (contract) that will be legally enforceable which again you would be best getting a lawyer for.

    If there is anything you do not understand in the Section 32, you need to talk to your lawyer.

    We normally attach a personal cheque for the 10% made out to the agency trust fund (NOT to the agent or vendor!!) - the agent cashes this in only if the offer is accepted.

    Normally the agent will walk you thru all the above, but obviously a lot harder now.

    The Y-man
     
    The Y-man, 5th Apr, 2020
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  7. bucknaked007

    bucknaked007 Member

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    thanks for that advise
    yes, happier writing a chq than transferring out of my account

    i'll make some calls tomorrow
     
    bucknaked007, 5th Apr, 2020
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  8. The Y-man

    The Y-man Moderator Staff Member

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    I didn't answer this bit.

    In normal times, as soon as they tell you that you did not succeed, you can go to the office to pick up your cheque. I don't move money into the account until I know I am successful anyway (with words to the agent to the effects of "don't bank that cheque until today + 3 biz days pleeze!!" ~ they'll understand)

    Having said that, I did have one agent cash in my cheque and had to wait for 2 weeks for them to organise a refund cheque!! :confused:

    In all honesty I'd be much more worried about if your offer IS accepted! (eg have you got your finance arranged? You may not even get a loan!)

    The Y-man
     
    The Y-man, 5th Apr, 2020
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  9. bucknaked007

    bucknaked007 Member

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    Finance wise I'm good...sorta
    the bank asked me a million questions over the course of a few days and gave me a verbal amount, was hoping for the official notice on Friday but this will hopefully be tomorrow, sheesh what happened to the banks loaning whatever you wanted?

    they even asked me what i spent on my cat a month
     
    bucknaked007, 5th Apr, 2020
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  10. The Y-man

    The Y-man Moderator Staff Member

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    Banks are all about risk management right now - people can be out of work in a flash!

    Plus with apartments, they can turn around and say "NO" even though they initially said "yes" depending on size, location, etc.

    Have a plan B, C, D, and E ready.

    The Y-man
     
    The Y-man, 5th Apr, 2020
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  11. bucknaked007

    bucknaked007 Member

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    had a restless night and spoke to the agent today
    sigh
    he said its OK, just send a deposit if your offer is excepted also we prefer you to sign the contract BUT you can just send me an email with your expression of interest if you like

    it spent some time looking through the contract including committee meeting minutes
    seems they have pending rectification works for flammable cladding
    WTF...the agent not obliged to mention this?

    the importance of a legal rep I guess :)
    i would certainly appoint one before committing i just didn't think it was necessary at this point
     
    bucknaked007, 6th Apr, 2020
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  12. wylie

    wylie Moderator Staff Member

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    Agent is obliged to mention it, if he knows about it. How to prove that is the tricky bit.
     
    wylie, 6th Apr, 2020
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  13. The Y-man

    The Y-man Moderator Staff Member

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    No - it's part of the "buyer beware".

    The Y-man
     
    The Y-man, 6th Apr, 2020
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  14. bucknaked007

    bucknaked007 Member

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    well it was mentioned in his contract he emailed me, in the committee meeting notes
    guess its not a great selling point so why would he if he wasn't required to
     
    bucknaked007, 6th Apr, 2020
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  15. The Y-man

    The Y-man Moderator Staff Member

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    It's actually one big reason I prefer to sell by auction than private sale ~ auction is unconditional (no pulling out) and most people don't bother with paid inspection before hand.

    The Y-man
     
    The Y-man, 6th Apr, 2020
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  16. bucknaked007

    bucknaked007 Member

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    hey, just an update

    my offer was the only offer, agent didn't seem real happy, didn't really press me for more as I was well under the starting price I guess
    I said the flammable cladding was a real concern also the park was a stacker
     
    bucknaked007, 9th Apr, 2020
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