Placing offers on multiple properties simultaneously

I'd like to place multiple offers on multiple properties, but I can only buy one.

Of course, I can simply withdraw my other offers as soon as one gets accepted.

The common law postal rule could get me in trouble, but I can negate this by putting this on offer.

What I am nervous about is two offers being accepted simultaneously, e.g. agent rings me advise me of acceptance and while I'm on the phone call another sends an sms text message advising acceptance... them I'm stuck with two legally binding contracts!

Any advice of what I could do? Maybe a clause in my offer advising something along the lines of I'm placing multiple offers and can only buy the first accepted one? How would I word this?

Any advice?

 

Maybe just don't have multiple offers going at once. I can't think of many situations where you would need to - especially considering the state of the Perth market.

 

Yes, that's what I'm currently doing, but now I'm waiting for vendor to get back to me... and they might not accept... There is a second house I'm equally interested in, but I have to wait first to find out what happens with first offer, before I can make this second offer... seems like waste of time when I don't mind which one of the two I buy.

 

Make them one day apart with a 24 hour expiry?

 

Why let another party control your options. Maybe give the first offer a deadline at which time you will cancel the contract and pursue the other property ? Should bring a decision.
Marg

 

Hi all,

If in the event u have multiple offers.

Is a verbal and/or email offer a legally binding contract, once the vendor agrees to the offer?

Isn't it when you actually sign the contract/put a deposit down that it is then legally binding?

Can you not retract your offer?

Many thanks, newbie to the iP game,

K.

 

A contract for land generally has to be in writing - email could suffice. Actually an oral acceptance could lead to a binding contract, but it would be unenforceable.

 

This is a good position to be in.

It allows you to have posture and put forward an offer with a condition "If this offer is not accepted in writing by X time on X date, it will be automatically withdrawn." (words to that effect).

I feel it's always best to chat to the agents and explain the reason (so you can make an offer on another property of interest and not have two offers simultaneously accepted). Usually they'll jump into action.

Doing this also puts time pressure on the vendor (to decide) and agent (so they can't play your offer off others for long).

 

If it is only two properties you are interested in, make both offers subject to building and pest inspections. If they are both accepted, you can use the building and pest inspection condition to back out of one of the contracts.

Solicitors have confirmed for me in the past that as long as there is something about the house that you're not satisfied with, you can still use that as an excuse under the building and pest report condition to back out, without the report identifying anything major.

Double check with your solicitor.

 

Yes, definitely check this first.

My daughter pulled out of a contract under the B&P clause because of undisclosed termite damage. Her solicitor told her that she would have to supply the report to the vendor's solicitor to substantiate her action, but the other party did not ask for it. (Qld)
Marg

 

I was going to say the same thing.. Except with finance... Two or more offers, subject to finance... Depending how many you can get approved for... Should be fine

 

I would not try that in Perth.

Subject to finance would be a safer bet but I would still get advice.

 

Bump

help

Its very hot market in Perth.

Have 2 properties of interest

Can I place an offer on both? Both would be subject to finance, pre approval is in place

I dont understand how I could use subject to pest/build inspection as an out if its all clear?

Due to hot market, I need to improve my odds and its hard to find properties that fit my criteria

 

Not from WA, but if it's the same as VIC, you have 3 days cooling off anyway.
If you have to offer at the same time, go ahead.
If both accepted, you can pull out from the one you don't want. You may lose $1K, but that's a small price comparing to losing the house you want.

Put 24 hours limit on the offer and it's very unlikely both will give you answer at the same time.
If one accepts, send SMS to the other saying you're pulling out - didn't lose anything.

 

Well, if there is only servicability for one purchase then the bank will only lend for one, so you will have your out for the other

 

Unlikely an offer that is not unconditional will be considered by the agent / vendor

 

Maybe the case in Melbourne. In Perth, the vast majority by far are conditional upon finance, sale of existing property, pest & building inspections, etc.

This cooling off period is an east coast thing. Doesn't exist in WA law, but I suppose you could add a cooling off period special condition to the offer, but WA sellers may be unlikely to accept such a clause that they would be unfamiliar with.

 

That strange!
You can buy a toaster and return after 2 days unopened cause you had a second thought, but not a house?
Wow...

Bare in mind that if you do pull out within the 3 days cooling off - you will lose the initial deposit (most of the time $1K or so), so it's not like you're playing games - both side has something to lose (seller - time, buyer - $1K).

 

Technically you cant buy a toaster and return for change of mind under Australian Consumer Law. Some retail stores may have relaxed return conditions that do allow (some) returns. Some products may not be returned eg fresh food that isnt "off", underwear and swimwear etc. Caveat emptor. Let the buyer beware. How many people bought big on loo rolls last year and found retail stores modified their policy to refuse change of mind purchases ? Their abundant trolley of loo rolls, pasta and other products were a final sale. And didnt they complain when they took these items back !! They thought it was a obligation on retailers. It isnt.

Cooling off is a Australian contract law issue that only WA seem not to have. Uniform law making. With NO UNIFORMITY. Sounds like our borders !!
The cooling off period varies from two up to five business days. In some states, however, there is no cooling-off period at all, even for private treaty sales. Check the Fair Trading or Real Estate Institute website in your state. A cooling-off period can be extended provided the buyer and vendor both agree to it in writing. This can be useful if you need extra time to finalise your financing, for example. Auctions have no cooling off period and all inspections and finance should be prior arranged before bidding. Some sales prior to or following a auction may have no cooling off period. A buyer may be asked to waive some cooling off periods in some states and it cannot then be relied upon. eg To take the property off market and consider no further bids. Exercise of a cooling off period may still result in costs or loss of some deposit proceeds for the buyer. There are generally formalities to be observed to use a cooling off period. Get that wrong and its "sold" as the cooling off wasnt validly exercised.

Its a big assumption that you can change mind when purchasing something under contract. This is why legal advice PRIOR to signing property contracts is wise. Even if you are famous.
Toni Collette to pay up over failed house purchase.