WA - Putting in an offer

Discussion in 'The Buying & Selling Process' started by SarahJ, 4th Mar, 2022.

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  1. SarahJ

    SarahJ Well-Known Member

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    First home buyer in WA and is looking around for houses at the moment. Would like to know when is and offer legally binded? Can i still back out if i email the agent and offer a certain price, and got a reply to say seller accepts and will go ahead to prepare paper work? If anyone can give me more details on how it work and at which stage will i still be able to back out from an accepted offer? or before the seller accepts it?

    Cheers!
     
  2. PerthEngineeringDraftyGuy

    PerthEngineeringDraftyGuy Well-Known Member

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    Would like to know when is and offer legally binded?
    - once the Offer and Acceptance form is signed by both parties.
    Can i still back out if i email the agent and offer a certain price, and got a reply to say seller accepts and will go ahead to prepare paper work?
    - Yes, 100%

    You can back out until the form is signed by you and the vendor. The agent will part fill the form with the information you provide in any discussion or emails. They'll send you a copy to sign. You check it, you sign it, you send it back. The agent shows the vendor, if they approve, they sign and it's now binding.

    You may have a small window where you can withdraw your signed offer before the vendor signs, but once your signature is down you're basically at the mercy of the agent.

    In WA there is a standard form, with standard clauses. If you're unsure, it's worth calling a settlement agent prior to signing anything. You're going to need to engage one anyway, and it's best if you can have a relationship with one prior to beginning the process (there is even a place on the form where you will nominate your settlement agent, and it's best not to trust the RE agent to fill that in for you).
     
  3. PerthEngineeringDraftyGuy

    PerthEngineeringDraftyGuy Well-Known Member

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    Worth noting, at the moment in Perth, agents aren't really screwing around with verbal offers much. If you say you're interested, they'll email you a form and expect signatures quick.
     
  4. thatbum

    thatbum Well-Known Member

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    I always recommend people only offer on the proper O&A paperwork and pretty much never verbally or by email.
     
  5. Shogun

    Shogun Well-Known Member

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    Introduction to Business Law 101 was a long time ago. Seek legal advice.
    An offer can be withdrawn any time before acceptance.
    Acceptance must be communicated, you can't sign accept an offer (then have a contract) then just put in a filing cabinet until it suits you. You have to be told it's been signed.
    My understanding is you can specify that acceptance must be given by phone and via email.
    You can also specify that your offer expires at a given time and date.
    Also a counter offer ends your offer.

    After you offer. If RE agent asks if you will pay more they are talking you up if they say offer rejected or give counter offer. You can walk away.

    This could all be wrong Uni was a life time ago
     
    Last edited: 4th Mar, 2022
  6. jaydee

    jaydee Well-Known Member

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  7. SarahJ

    SarahJ Well-Known Member

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    that means you are online legally binded if you sign an O&A ? I am thinking about offering a few places at the same time. Cant be just offering one and waiting for it and if it get rejected i lose other places too.
     
  8. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Yes only legally binding when both parties have signed the official O&A.
    It generally is the only accepted way to 'offer' in WA. Verbally or emailing saying "I'd like to offer $500k" are generally met with "let's put that in writing on the offer document and see what the sellers say"
    It does make it hard when there are multiple properties you might be interested in. Generally things are rejected or accepted quite quickly and if you want you can put a time limit *let's say 24 or 48hrs) on your offer so that you can move onto the next one without much of a delay
     
  9. PerthEngineeringDraftyGuy

    PerthEngineeringDraftyGuy Well-Known Member

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    MIssing out on your second choice is preferable to being legally obliged to try to get finance for your first, second and third choice all at once.
     
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  10. Curtpizza

    Curtpizza Active Member

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    Does anyone have blank copies of the O&A form and the Joint Form of General Conditions for the Sale of Land they can send to me?
    Saving the $20 they're asking for my renegotiation strategy!
     
    Last edited: 7th Apr, 2022
  11. jaydee

    jaydee Well-Known Member

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    I doubt any agent will send you blank copies of the WA O&A forms, however, you can purchase these in kit form from the REIWA office in Hay St Subiaco. (Can be posted). I think the kit include 2 sets and cost around $25 per kit.

    If calling the REIWA office, be clear which ones you want as they vary slightly for green title, strata complexes and commercial properties.
     
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  12. thatbum

    thatbum Well-Known Member

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    Why would you need blank ones for some renegotiation strategy?