Making an offer

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

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  1. Dan29

    Dan29 New Member

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    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 SDA Provider, Town Planner, Former Property Lawyer

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    Location:
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    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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    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

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    Thanks for the replies ... state is Vic
     
  5. RPI

    RPI SDA Provider, Town Planner, Former Property Lawyer

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    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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    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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    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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    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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    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.