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Making an offer

Discussion in 'The Buying & Selling Process' started by Dan29, 25th Jul, 2015.

  1. Dan29

    Dan29 New Member

    Joined:
    25th Jul, 2015
    Posts:
    4
    Location:
    NSW
    Hi just have some rookie questions

    When making an offer is it common to be something like this

    I offer xxx amount for property at address xxx

    This offer is subject to finance, pest and building inspection

    The deposit will be 1% which is xxx

    This offer expires on date xxx at time xx


    Is it common to have the building, finance, pest in this section of the offer or only the contract of sale? Thanks.
     
  2. RPI

    RPI Property Lawyer, Town Planner Business Member

    Joined:
    19th Jun, 2015
    Posts:
    712
    Location:
    Brisbane
    It depends on the state you are buying in.

    In QLD you would make your offer on a contract that you have fully signed.
    Most common terms

    Building and Pest
    7 Days from Contract Date

    Finance
    14 Days from Contract Date
    Amount: Sufficient to Complete
    Financier: Buyer's Choice

    Settlement
    30 Days from Contract Date

    You can withdraw your offer at anytime prior to the Seller or their Agent communicating acceptance. That is why good agents will call you the minute the Seller signs
     
  3. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Location:
    Canberra and Sydney
    Sounds fine - the process does depend on the state/territory though. Chances are they will want all this info to be written into a contract of sale.

    Cheers


    Jamie
     
  4. Dan29

    Dan29 New Member

    Joined:
    25th Jul, 2015
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    Location:
    NSW
    Thanks for the replies ... state is Vic
     
  5. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Location:
    Brisbane
    Can't help there QLD based and opening in NSW next month but I don't even have any of my lawyers who originally practiced there. But plenty of people on here will be able to, this is an outstanding forum with so much knowledge on here, you have come to the right place.
     
  6. Tillie

    Tillie Well-Known Member

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    Location:
    Melbourne
    In Vic you are normally expected to make and offer by signing a contract. In a current sellers market the less conditions you have the better change of acceptance. (If lowballing, only chance to secure the property) Also in Vic (Melbourne) deposit is expected to be about 10% paid when you sign the contract, otherwise a vendor might not take you seriously.

    In a current market agents do no like to take offers to a vendor if not made by signing a contract.

    Also in Vic if expiry time is not specified on the offer, the offer lapses after some time. Please anyone who has more detailed knowledge correct me if I am wrong, but I thought that it is 3 days by law. After that the offer is void. However you can specify the offer expiry time.
     
  7. psylence

    psylence Member

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    16th Jul, 2015
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    Location:
    NSW
    Thanks, so im right in saying that there won't be any holding deposit, just the 10% on exchange of contracts for VIC? Thanks
     
  8. Big Will

    Big Will Well-Known Member

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    Location:
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    you would normally need to include a initial deposit of $1,000 and then 10% on exchange, if there was no holding deposit I would be reluctant to accept. If you cant fork out $1,000 to secure a xxx,000s+ item then you shouldn't be looking.

    Yes it is three CLEAR business days for cooling off in VIC if using the REIV CoS.
     
  9. Big Will

    Big Will Well-Known Member

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    Location:
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    Being VIC, you would write into the Contract of Sale, it would specify everything and once your and vendors signature (with all initials if amendments) then it would be a legally binding agreement. If you took that note to the REA he would likely just complete the COS for you and get you to sign it.