Join Australia's most dynamic and respected property investment community

Selling "subject to sale"

Discussion in 'The Buying & Selling Process' started by ConfusedVendor, 25th Feb, 2016.

  1. ConfusedVendor

    ConfusedVendor New Member

    Joined:
    25th Feb, 2016
    Posts:
    3
    Location:
    Regional SA
    Our agent is encouraging us to accept a (very low!) offer on our home, which is also subject to the sale of the buyers property.
    Now, the buyers property isn't even on the market yet - our agent is hoping to get the contract to sell it for them.
    It seems to me that – rather than getting us the best possible offer – our agent has spent the last few weeks simply getting himself a new client.
    Is this common practice?
     
    Bran likes this.
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,224
    Location:
    NSW
    Common practice in a slow market. But really your buyers are not genuine buyers - forget it and instruct your REA to find you a proper buyer who can perform.
     
    Rugrat, Bran and ConfusedVendor like this.
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,940
    Location:
    Sydney
    Hes trying to stiff you
     
  4. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    895
    Location:
    Qld
    Just keep in mind that you are being asked to take your property off the market for a length of time. If the buyer does not sell, the contract will crash.
    Marg
     
  5. RPI

    RPI Property Lawyer, Town Planner Business Member

    Joined:
    19th Jun, 2015
    Posts:
    709
    Location:
    Brisbane
    Have an acceleration clause if you are inclined to take it.

    They will provide a clause something like this

    Prior Sale Condition
    1. The Seller acknowledges that the Buyer requires the proceeds from the sale of the Buyer's Property located at ?? Street, Suburb (Prior Sale Property).

    2. This Contract is Subject to and Conditional Upon:
    (a)The Buyer entering into a contract for the Prior Sale Property within 14 Days of the Contract Date (Prior Contract);
    (b) The Prior Contract going unconditional within 28 Days of the Contract Date; and
    (c) The Prior Contract settling within 60 Day of the Contract Date.

    3. Should the Buyer not satisfy any of Special Condition 2 then either the Buyer or Seller may terminate the Contract, any monies paid by the Buyer to the Seller are to be refunded and the Contract is at an end. This is the Seller's only remedy.

    4. These Special Conditions 2 & 3 are solely for the benefit of the Buyer and the Buyer may waive them at any time.


    You add a clause something like this

    Acceleration Clause
    5. In recognition of the Seller's willingness to allow the Contract to be subject to the Prior Sale Condition the Buyer authorises the Seller to continue to market the property for sale.

    6. Should the Seller receive a contract of sale for the Property on terms and conditions acceptable to them:
    (a) the Seller shall give notice of Acceleration; and
    (b) the Buyer shall have 48 hours to notify the Seller the Contract is unconditional in all regards.

    7. Should the Buyer not satisfy Special Condition 6(b) then the Seller may terminate this Contract and any monies paid by the Buyer to the Seller are to be refunded and the Contract is at an end.


    That way you can continue to sell the property.
     
    Big Will, wylie, kierank and 5 others like this.
  6. ConfusedVendor

    ConfusedVendor New Member

    Joined:
    25th Feb, 2016
    Posts:
    3
    Location:
    Regional SA
    Thanks all for your advice.
    My major concern is that our agent won't have an incentive to sell the buyers house quickly - and may even go looking for yet another client to add to the chain! All this could take months...
    I think the acceleration clause is a really excellent idea, thank you very much.
     
  7. SmashedEconomy

    SmashedEconomy Active Member

    Joined:
    26th Feb, 2016
    Posts:
    42
    Location:
    Brisbane
    I wouldnt bother taking a sale under these circumstances, unless you were desperate. Thats the question, are you desperate?
     
    Terry_w, Rugrat and ConfusedVendor like this.
  8. 2FAST4U

    2FAST4U Well-Known Member

    Joined:
    3rd Jul, 2015
    Posts:
    912
    Location:
    Adelaide
    I don't think the agents acting in your best interests. The real estate agent doesn't care if your house sells for 10-20k more- they just want to sell the house asap and get paid. Unless you're desperate to sell I'd hold out. Worse case scenario you end up accepting the current offer.
     
    ConfusedVendor likes this.
  9. ConfusedVendor

    ConfusedVendor New Member

    Joined:
    25th Feb, 2016
    Posts:
    3
    Location:
    Regional SA
    Thanks, we're not desperate, we've only been on the market 3 weeks!
    I think the agent has created a conflict of interest for himself by taking on our potential buyer as a new client of his own - who is he now working for, us or them?
     
  10. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,224
    Location:
    NSW
    Neither. He's working for himself. :(
     
    Gurtofen, mrdobalina and Terry_w like this.