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Should I trust the seller's agent?

Discussion in 'General Property Chat' started by Samj, 3rd Apr, 2016.

  1. Samj

    Samj Well-Known Member

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    We verbally gave an offer for a property and then the agent said they have already got a $5000 higher offer. But she asked us to give the offer in a signed contract. I am not quite sure why she asked us to sign the contract if she already has a higher an offer. May be she want to collect all offers and start a negotiation with everyone.

    My question is, when an agent said something like that, should I trust them?

    Can agents disclose other offers?

    And she wants us to fill our details and sign on a plain contract, even sellers details are not there.Is that the normal procedure? I understand that seller signs at the end and buyer needs to sign first. But shouldn't they fill all other fields prior giving that form to the buyer?
     
  2. balwoges

    balwoges Well-Known Member

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    Dont sign anything without your solicitor having a look at the document.
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Best not to trust someone else's agent. They can and do dislose offers.
     
  4. imbi3

    imbi3 Well-Known Member

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    I believe that is called a contract note but I would not be signing anything until all details are completed. And yes, check with your solicitor
     
  5. Samj

    Samj Well-Known Member

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    Thank you very much everyone! I am going to talk to a solicitor tomorrow.

    We are going to buy our first investment property and seller's agent said she would let us to conduct open house inspections before the settlement. In that way it will help us to find a tenant by the settlement time.

    I would like to get done some new blinds and painting (floor and wall) before renting it out. I am just wondering if it is possible to do renovations during the settlement period? I think it's very unlikely and so didn't ask the agent about it. Do you have any idea about that?

    Thanks again.
     
  6. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Yes, thats possible but you'd need to have it written into the contract. Also get insurance to cover the situation. Talk to your Solicitor or Conveyancer.
     
  7. Samj

    Samj Well-Known Member

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    Excellent. Didn't know about that. Thank you very much.
     
  8. D.T.

    D.T. Adelaide Property Manager Business Member

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    Treat the agent much like you'd treat the vendor, the former is employed by and is essentially an extension of the latter.

    If you rang up about a fridge on gumtree, and the seller said it worked would you verify this yourself or would you take the seller's word?
     
  9. Samj

    Samj Well-Known Member

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    Makes sense. Thank you!
     
  10. larrylarry

    larrylarry Well-Known Member

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    @Samj trust not the vendor's agent as many would suggest. a recent experience of mine suggests that agent doesn't always tell the truth (prices)... I'm still thinking whether I should resubmit my last offer or review and give a even lower offer to get the property.
     
  11. Xenia

    Xenia Adelaide Property Manager Business Member

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    Trust no one
    Do what works best for you regardless of what someone else's intentions or thoughts are.
     
  12. dabbler

    dabbler Well-Known Member

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    No,do all checks etc yourself. Only offer what you will pay if it is an IP.
     
  13. ashish1137

    ashish1137 Well-Known Member

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    Also be prepared to negotiate further after b&p inspection.

    Regards
     
  14. Samj

    Samj Well-Known Member

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    That's another gray area for me as I am new to this process. I was told there is a penalty (I guess 0.25%) if I want to terminate the contract even during the cooling off period.

    I am not sure what's the threshold when it comes to the building and pest inspection findings. I believe, if there is a critical structural issue or pest issue I can terminate the contract. But what if building inspection find a few issues that can cost me some money? For instance, if building inspection find something that can cost $3000 to fix (not severely critical, but needs to be done sooner or later) and seller doesn't like to negotiate the price. Can the buyer terminate the contract in such a situation?

    Thanks again.
     
  15. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    Write your offer to be "subject to pest and building inspection results to the buyer's satisfaction". Ditto for the finance clause.
    Yes, if you pull out in NSW you will be subject to 0.25% penalty if you don't proceed, but that's nearly nothing in the scheme of things.
     
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  16. wylie

    wylie Moderator Staff Member

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    In Queensland there is a small penalty if you pull out under the cooling off but not if you pull out under a finance or B&P clause - but make sure your wording is good.
     
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  17. Samj

    Samj Well-Known Member

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    Is this clause used commonly? I doubt that agent would like it. I like the property and this clause makes sense to me. I don't want to terminate the contract if there is nothing too bad. But when purchasing a 25 years old property, I think this is very important.

    Thanks all!
     
  18. larrylarry

    larrylarry Well-Known Member

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    If you need a hand to secure the property, speak to a buyer's agent or solicitor. It appears that you aren't very sure about the nuts and bolts of entering into a contract. Also what's the big picture? Will $3000 put you off purchasing? Every property needs maintenance and that's one of the cost in holding properties. Some building inspectors are builders or in the past who can give you an idea if the costs involved.

    It's a common clause re finance and B and P. Please search on threads re making offers.
     
  19. D.T.

    D.T. Adelaide Property Manager Business Member

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    Funny how every state is different isn't it?
    Here you don't pay your deposit until cooling off period has finished
     
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  20. larrylarry

    larrylarry Well-Known Member

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    Interstate inspection is a great idea @D.T.