REA poor conduct?

Im helping my mum to buy a house.
We have been negotiating with a particular REA for a particular house that's up for private sale.

Anyway, something that I didn't know until a REA friend of mine told me is that if you sign a contract, yes you do have a 3 day cooling off period. However if you amend the price, or change it with a higher price and just initial it, it will nullify the cooling off period.

This certain REA was question why we wanted a fresh contract and was trying to convince that she didn't need a cooling off period if she liked the house.

What are your guys opinion on this?

 

My opinion is a little harsh but fair - understand how contracts work before entering into them.

 

I can't see what exactly is "poor" about the conduct. Its also not clear what has even happened before the REA's question...?

 

That's news to me. You have signed subject to the terms negotiated and without waiving your cooling off with a S66w the cooling off period would still apply. AFAIK the agreed price isn't written on the contract until it has been presented to the buyer for execution.

Subsequent negotiations during the cooling off period or as arise out of requisitions won't trigger a new cooling off period.

@KateAshmor may be able to confirm.

 

I get from the REA point of view. Just trying to get the sale through. I just rather be safe than sorry. She is sure she wants it but it's better to have it and not need it.

I just think it's kind of shifty to talk someone who doesn't know much about real estate laws out of something that they can be contractually obligated to.
It's a big purchase.

Oh, and he also tried to talk her out of getting a building inspection?

 

The REA is not your agent.

Good ones would not do this. They would not sell their reputation for a quick sale.

I guess it is a case of buyer beware when you deal with guys who are getting a percentage.

 

Hahahahahah
Seriously?

A REA is a sales person.
Sales people by nature would sell their own mother for a profit.

I know your reply to this will be "not all of them", to which the response is that yes there exists sales people who are honest and not trying to screw people over for their own benefit, but just because you may be able to find one does not make it the standard.

Lol perfect example of what I just said. Never trust a REA.
They will find any legal way possible to screw people over and then say it is legal and resolve them self of any responsibility.
Oh and I should point out that my opinion to never trust an REA is harsh but fair also.
Any time you can screw someone over without recourse, apparently it is harsh but fair.


Also this is why not having a conveyancer work on your behalf for a half million dollar plus purchase (especially vs these types of people) is nothing short of insanity.

 

I do not know if that is true or not, I can't see how it would matter, but maybe let your solicitor exchange after you make offers and have an agreement with the vendor.

 

Everything with buying real estate, caveat emptor. Buyer beware on everything. No one is there to save your bacon.

Get a buyers agent if you want to employ and pay someone to represent you. The seller is paying the agent to represent them.

 

As your location is Melbourne I am assuming the property is in VIC.

The cooling off period on the standard REIV contract is



Recreating a new contract would actually exempt you from cooling offer (see bullet point 4 on the picture) unless it the terms are substantially different.

 

It's always buyer beaware

 

If you're still negotiating the contract then the cooling off would still apply however if subsequent to signing you make changes then you don't have the benefit of an additional cooling off period.

 

I think point 4 just means you can't reset or get another 3 days cooling off.

I like point 5, we were discussing that before, I thought it may have meant VIC REA's, but is not worded that way, but then again 4 is not worded well either IMO.

 

Cooling off is not free. There is a financial penalty on the contract of sale. You will likely also need to pay your conveyancer to bail you out. Best not to offer on a property unless you really mean business.

 

Anyone want to buy my mother?
She will clean your house while you are at work and cooks awesome Greek food.

Up for auction going going.....

 

I don't know of many situations - even when buying something new - where a building and pest inspection is something to avoid.

Ignore the agent. Your solicitor/conveyancer should be the person whose advice you take regarding the contract and the legals.

Never take the advice of someone whose job it is to squeeze every last cent out of you on behalf of someone else.