Things to include in contracts when purchasing IP

Say I was the vendor, the agent comes to my house the evening after 1st weekend of open inspection.

• 5 offers presented on the table. a smile in my face. agent mildly puts pressure on me, saying if I walk away on these 5 offers, the property might be on the market for another 2-3 months.
• 1 of them were your offer..
• Unless your offer was considerably higher than the 4 offers, I will reject your offer immediately. I would probably not bother to read your 'special clause' (note the agent will never tell what your position in the offer, so you may only have one shot at this property)
  
• I will look for the highest offer to accept. If the terms are standard, then there is no problem.or I might wait for 2 round of offers.
  
• I might quickly look at all other offers terms and special clauses or I may not.

What I am trying to say here is special clause ties you down when presenting an offer when there are multiple offers. You can try to negotiate them once you got the contract executed. If you're unsuccessful in negotiating them, walk away. The terms can be negotiated prior delegating a solicitor or B&P done, hence you've incurred $0.00 in the transaction.

 

Agree with all the above but it depends if the market is hot or not. If its not then there may not be multiple offers.

 

That's a real grey area,most people I know once the contract is solid have a cover note on the property straight away,and those clauses will only work in a hot market,other times that sort of contract would just go straight in the bin..

 

agree, last year I was able to present an offer with fin clause of 14 days and a settlement of 90days and got accepted.
with much anticipation and hype in Brisbane, you dont want a rigid special condition in a rising market.