Condition of sale/Agency Agreement/FHB Finance

I've been in la-la land for a while from the painkillers from my knee injury. If anyone knows the answers to these Q's please inform me. Western Australia.

1) The agents contract expired on 6/4/09. They presented us with an offer 5 days later which we accepted. Don't we have to sign another agents agreement?

2) There's a condition on contract, "This offer is subject to a satisfactory termite inspection being conducted at the purchases expense within 21 days after settlement". Don't you usually have it done after finance approval, before settlement?

3) Is it true FHB's now need 5% savings for their purchase to get finance not including $14,000 grant? Purchaser is with Bankwest.

Thanks

INVSTOR said:

1) The agents contract expired on 6/4/09. They presented us with an offer 5 days later which we accepted. Don't we have to sign another agents agreement?

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YOU don't have to sign anything. The REA will need you to sign if they are to have legal claim on their commission.

INVSTOR said:

2) There's a condition on contract, "This offer is subject to a satisfactory termite inspection being conducted at the purchases expense within 21 days after settlement". Don't you usually have it done after finance approval, before settlement?

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That has to be a mistake. Perhaps replace the word "settlement" with "this offer".

INVSTOR said:

3) Is it true FHB's now need 5% savings for their purchase to get finance not including $14,000 grant? Purchaser is with Bankwest.

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Most lenders are now looking for 3 months of genuine savings - yes. I don't know about BankWest's criteria.

Thanks for advice - sorted. Selling has been a big learning curve. Agent assures me purchaser has savings history - we'll see.

Propertunity said:

YOU don't have to sign anything. The REA will need you to sign if they are to have legal claim on their commission.

That has to be a mistake. Perhaps replace the word "settlement" with "this offer".

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the REA have made so many mistakes throughout dealing with them, very unprofessional. At this point, since the contract has expired can I negotiate a lower rate of commission?

INVSTOR said:

the REA have made so many mistakes throughout dealing with them, very unprofessional. At this point, since the contract has expired can I negotiate a lower rate of commission?

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At this point (where you have not resigned an expired selling agency agreement) you are in the box seat. If you refuse to sign, then they are not entitled to one red cent.

I'd be wanting to see the contract of sale go unconditional before I started negotiations though. They can always steer their buyer away to some other listing until then.

Great, thanks for advice.

They've accidently put under offer on listing for third time AND there's a home open today

If the finance doesn't go through I'm taking it off market

Sounds like its time to 'open a can'

Yer, I opened a few yesterday

INVSTOR said:

They've accidently put under offer on listing for third time AND there's a home open today

If the finance doesn't go through I'm taking it off market

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OMG! Property has under offer on it for the fourth time and open for inspection Saturday. Unbelievable!

you may want to check if the agency has some kind of continuation clause... it probably says something like the agency starts on x date and finishes on x date. If it is not terminated by the agent or the principal then it continues on until it is terminated by either party by giving x days notice....

that of course is not the exact wording... but something along those lines

they probably keep changing it to under offer because you have accepted an offer.... but if you have asked that it remain fully on the market until exchange then they should take it off.

I've read the contract several times over past few days and FINALLY realised that there is a clause about them still getting commission after contract expires. Lesson learnt!!

They tell me whenever they access realestate.com via the backdoor it automatically changes to under offer. Is that possible alabex? I find it hard to believe. If it happens why aren't they watching it closer and changing it back more quickly? Why isn't it happening to millions of other listings?? They suggested to me they wouldn't put it under offer until unconditional. Another thing that's getting to me is they're not even informing me if I get offers. They just mention it whenever I ring them complaining about the under offer appearing on the internet. That surprises me also.

it is the agents responsibility to notify you of all offers in writting. The reality of putting every offer in writting is a little over the top when you are receiving heaps of offers and counter offers and people increasing their offers.. it all happens so quickly. However a good agent (like myself ) will do a summary to you in writting regularly. When there is a lot of offers going on i do a letter at the end of the day and attach it in an email to the vendor saying 'Hi Vendor, please see attached summary of the offers we discussed today, as per our discussions i have done xyz, Regards Alex"

No idea about their odd back door realestate.com shananigans? i didn't know webpages had doors. You can use programs that update across the board to all websites off a central system.. i gather this is what they use. In this case they may be using a internal software where they have marked the property as underoffer for internal reasons and this is loading it to the sites. Problems such is this is the reason we dont use a central system. It takes longer but we go into real estate.com and domain.com and update the listings individually..... this is the best way to retain quality control in my opinion.

Hiya

my 2 bobs worth is that Bankwest doesnt require gen savings per se

ta
rolf

Thanks Alabex - thankfully I'm better at picking tenants than RE Agents.

Thanks Rolf. REA is telling me they might need an extension on the 30 day finance approval. They signed 4/4. Would it be most likely they would need an extension?

My property says under offer for the fifth time. I surrender.