Purchaser wont sign

Discussion in 'Legal Issues' started by Fernfurn, 3rd Jun, 2020.

Join Australia's most dynamic and respected property investment community
  1. Fernfurn

    Fernfurn Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    161
    Location:
    by a Bellarine beach
    If the vendor has signed the documents for sale of a house, and the purchaser just decides to hold them (maybe to find out what will happen with the government deciding to rescind stamp duty) or whatever reason, what position does the vendor have? Is there a period of time before their signing of the documents is void?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    20,293
    Location:
    Sydney or NSW or Australia
    Why would a vendor sign the contract of sale before the purchaser has returned their signed copy which includes any additional conditions they have put forward and agreed?
     
  3. qak

    qak Well-Known Member

    Joined:
    21st Nov, 2011
    Posts:
    1,213
    Location:
    Sydney
    If the purchaser hasn't signed, they aren't a purchaser.
     
    TMNT and Perp like this.
  4. Terry_w

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

    Joined:
    9th Jun, 2006
    Posts:
    30,819
    Location:
    Australia wide
    No contract
     
    qak and Perp like this.
  5. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,319
    Location:
    Here.
    The normal process is the purchaser signs first, then the vendor, so I can't say I've ever seen this happen.

    If it's been done the other way around for some weird reason, then I imagine the vendor could rescind the contract at any time prior to the purchaser signing.

    A contract is only formed once both parties have agreed to it. If one party refuses to sign, then there isn't really a contract in place. There might be a verbal contract, but this is difficult to enforce.
     
    Stoffo and Perp like this.
  6. Lacrim

    Lacrim Well-Known Member

    Joined:
    25th Jul, 2015
    Posts:
    4,116
    Location:
    Australia
    You could however tell them there are other parties and it would be in their best interest to sign ASAP if they're legit.

    Normally, a buyer holding back is as good as gone though....normally.
     
    Archaon and Perp like this.
  7. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    8,911
    Location:
    Melbourne
    What did your selling agent say? I have seen contract docos pre-signed by the vendor but the agent has obviously not let us take it home or anything!!!:eek::eek::eek::eek:

    The Y-man
     
    Stoffo likes this.
  8. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,098
    Location:
    Sydney
    If you signed and they have a signed copy you may have a problem. Along comes a identical offer and you take that. Then find the other signs. You now have two contracts one property. (assuming both pay a deposit to the agent which would be unlikely for a agent to accept...But they could by mistake)

    You likely need to end the belief they can sign by giving them a expiry period. ie Sign in 24 hours
     
  9. Terry_w

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

    Joined:
    9th Jun, 2006
    Posts:
    30,819
    Location:
    Australia wide
    You should seek legal advice about withdrawing your offer - there is no contract until the offer is accepted and no enforceable contract unless it is in writing
     
  10. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,574
    Location:
    Melbourne
    ive done this as a purchaser a few times, without any real reason,
    if I recall, every time it was the agent who initiated it so that they could get the contract signed as quick as possible

    but yes, if the buyer signs second, then they have all the power, and can cause problems if they wanted to
     
  11. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    8,911
    Location:
    Melbourne
    I think it was when the vendor was overseas/unreachable or something, so they left signed papers with the agent.

    The Y-man
     
    willair likes this.
  12. TMNT

    TMNT Well-Known Member

    Joined:
    23rd Jul, 2015
    Posts:
    5,574
    Location:
    Melbourne
    that is/was my assumption, usually when communication is hard with the vendor for whatever reason,
    or when its a family member etc doing the sale on behalf
     
  13. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    2,684
    Location:
    Sydney
    Doesn't a sale contract have to be witnessed and dated ?
    I wouldn't worry at all ;)
    Should another offer be made and agreed to (with witnesses, mails to verify time and date) then the party playing games can "go find something else" :p
    I wouldn't even bother contacting or entertaining them any furthero_O
    I would only sign another sale document only after a purchaser signs next attempt :DI'd also be having stern words with the selling agent :mad:
    Good luck :cool:
     
    willair likes this.
  14. Paul@PFI

    [email protected] Tax Accounting + SMSF Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,098
    Location:
    Sydney
    Take control. Give written instruction to the agent that your signed contract is withdrawn and is no longer a offer. And ask they confirm that this was communicated.

    This is ammo for the agent to shake the proposed buyer and may prompt them to do one of two things rather than just stall.
     
    Stoffo and wylie like this.
  15. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    10,095
    Location:
    Brisbane
    This is what we did when a vendor was playing games with our signed, and countersigned contract. Our potential purchaser was having such fun, asking the agent around to sign and lock the price in (he'd offered, we'd countered and all he had to do was initial the counter to make it binding).

    Once agent got to his house, he'd say "I might sign it tonight, might not, depends how I feel". No signature two nights in a row from memory. He was having such fun, and hopefully he really did want the house, because we pulled it from under him.

    We asked the agent to ensure this joker was advised in writing and in person and via email that we are withdrawing the contract and do not wish to deal with him. (He was a lawyer, so knew exactly what he was doing.)
     
    Stoffo likes this.
  16. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,319
    Location:
    Here.
    No witnesses required for a COS. The documents are usually scanned, no postage required.
     
  17. Fernfurn

    Fernfurn Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    161
    Location:
    by a Bellarine beach
    All good, they signed at the beginning of the week. Evidently they were waiting on legal issues as a divorce is involved.We thought the Re had signed document on vendor's behalf but he was horrified and said he would never do that.
     
  18. Lindsay_W

    Lindsay_W Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    2,447
    Location:
    QLD
    Good to know but is there a reason the vendor signed the Contract before the buyers? It's most unusual
     
  19. skater

    skater Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,559
    Location:
    Sydney
    Glad it's all turned out well.
     
    Lindsay_W likes this.
  20. spludgey

    spludgey Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,568
    Location:
    Sydney
    Aren't you the REA? Are you a BA in this? Or the PM?
    I get so confused by your posts!
     
    Lindsay_W likes this.