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Sunset clause

Discussion in 'Legal Issues' started by Investing101, 21st Oct, 2015.

  1. Investing101

    Investing101 Well-Known Member

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    Hello,

    Anyone got a good legal standing Sunset Clause for me to add to the conditions of purchase?

    I.e, This contract is void if the seller does not agree to the purchase price by -insert date-
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Simply write in the special conditions, "This offer will expire at 5:00 xx/xx/2016".

    You can withdraw an offer at any time even without a sunset clause, but putting it in writing does add some pressure to the vendor.
     
  3. Investing101

    Investing101 Well-Known Member

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    thank you. I assume withdrawing the offer anytime would mean only up to the point of acceptance? Which could get messy trying to prove if it was accepted before or after withdrawing?
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Depends on your drafting.
     
  5. Big Will

    Big Will Well-Known Member

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    I am guessing it might also depend on your state (I am not a legal expert).

    However I know in VIC you can pull out of a COS if you haven't received a signed copy. E.g. If you put an offer in and sign it, the REA takes it to the vendor 10 minutes later and they sign it and the REA calls you up and says congrats you have won it you are able to still withdraw as you haven't received your COS.

    If you did do this though you would burn any goodwill with the REA or the vendor so you would have to not want to purchase the property.