Nominating an OTP Contract

Discussion in 'The Buying & Selling Process' started by blake1994, 6th Feb, 2021.

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  1. blake1994

    blake1994 Well-Known Member

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    Hi all

    I'm unable to settle on an OTP property with sett due april/may 2021. I have advised the agent who did the deal back in 2018. She is trying to find a buyer. She says she needs about 6 weeks in total to find a buyer which is fine, however I have also seen properties in this same building getting nominated quicker ie a buyer found.

    She has asked me to also look for a buyer and I asked her to list the property on their site which she said she will if she gets permission from the developer, yet I'm still unable to find a listing. She said she'll email me the information once she has it. I told her I would like to nominate over a week ago.

    Should I engage another real estate agent to try to find a buyer for me, or keep the faith with her? I need to find a buyer asap and don't have time to muck around. When I floated the idea of involving another agent she advised not to as there will be conflicts with commission.

    I also have a friend in the industry who said to give her 10 days to provide an update. Any advice would be appreciated on here.
     
  2. Sackie

    Sackie Well-Known Member

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    Personally in this situation I'd want a very proactive agent to work on my behalf with prompt communication. Sounds like this agent is less than optimal. Why does she need 6 weeks? 10 days for an update with no communication inbetween? Seriously?

    I'd likely be looking for a new agent.
     
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  3. blake1994

    blake1994 Well-Known Member

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    Why would she not be proactive? Isn't it in her best interests to find a new buyer asap too?

    How long is reasonable for her to give me some sort of update, two weeks? She said she needs 6 weeks in total to find a buyer.

    How do I handle this situation as I also don't want to p#ss off the conveyancer who knows this agent.
     
  4. AxeLy

    AxeLy Well-Known Member

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    Hi Blake, is yours an apartment ? Have you signed any exclusive listing with this agent ?
     
  5. blake1994

    blake1994 Well-Known Member

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    It is an apartment yes. Two bed two bath.
    I do not believe I signed anything of that nature. Only a contract of sale back in 2018.
     
  6. Trainee

    Trainee Well-Known Member

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    So if the agent finds a buyer for you, how much / how do they get paid?
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    The agent's getting 15% comms for OTP vs 2-3% for yours. There may also be some restrictions on where they can advertise if they are already under an exclusivity agreement with the developer ie no Domain or RE.com.au

    A different agent would be your best course of action.
     
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  8. AxeLy

    AxeLy Well-Known Member

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    There'd be an influx of supply close to completion date, meaning more competition. If you have not signed any exclusive, you are not obliged to stay with this non-proactive agent. Check with those agents who had buyers found. They might have other ready buyers.
     
  9. blake1994

    blake1994 Well-Known Member

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    This particular building is completely sold out. Only nomination sales from now.
     
  10. Trainee

    Trainee Well-Known Member

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    Are you unable to settle because your circumstances changed? Or the val is lower than the contract price?
     
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  11. AxeLy

    AxeLy Well-Known Member

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    I'm referring to re-sell. Not sure about your building .... but with many city OTP apartment blocks, a good part comprises foreign buyers who bought years ago at a higher price. Either personal circumstances have changed, or the current bank valuation has lowered which makes it harder to get finance, there would be many sellers eager to find buyers before the settlement date.
     
  12. blake1994

    blake1994 Well-Known Member

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    I'm not settling due to changed circumstances, not anything to do with price.

    So should I call the agent on Monday and ask for some sort of movement?

    Otherwise should I get some sort of real estate agent involved? I need to sell and need a proactive person.
     
  13. AxeLy

    AxeLy Well-Known Member

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    Penalty from inability to settle could be substantial. Do what is best for your situation.
     
  14. blake1994

    blake1994 Well-Known Member

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    That would only happen if they can't sell it for at least 90% of what I paid. And I have been advised by my solicitor that it is rare for a developer to sue for extra charges as they lose the ability to sell if it goes to court. I'm fairly confident that won't happen and someone out there is able to be a buyer. I just need a better agent.
     
  15. blake1994

    blake1994 Well-Known Member

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    Given that the building is sold out, credit is cheap at the moment and supply is weak I'd say it's highly likely even if it had to be sold and we couldn't find a buyer in time, that they'd be easily able to sell without losing money.
     
  16. AxeLy

    AxeLy Well-Known Member

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    Say thank you and goodbye to the sluggish agent. Get a good one who is proactive.
     
  17. Trainee

    Trainee Well-Known Member

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    isnt it more likely they will sell for less than your contract price and then come after you for the difference?
     
  18. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Assume the worst and hope for the best. What if you cannot find anyone?
     
  19. blake1994

    blake1994 Well-Known Member

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    Why would they if they can sell it for contract price?
     
  20. blake1994

    blake1994 Well-Known Member

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    Based on the advice I received from professionals (my financial planner and my conveyancer) they have said it unlikely they will take legal action. In fact my conveyancer said in her 40 odd years of experience she has never had a developer go to court for a residential property as it prevents them from selling it quickly. It's more common for commercial deals however.

    If no buyer found, lose 60K