went to visit a good friend at his place and when i got there, there was an agent there,turns out my friend is looking to buy, what i found really strange is the motives behind the agent wanting offers in writing signed with a cheque 3 days before auction??? i can think of a couple of reasons, is it because vendors are worried that noone will bid at auction so they want it sold before, or is they want to have a list of offers so come auction day they will have offers plus highest bid of auction. i also find it strange that an agent will come to the house just to negotiate an offer sorry enter key on phone is not working
Agent wants offers 3 days before auction
- Thread starter Property Meister
- Start date
It's because if your offer is accepted it will be under auction conditions and therefore unconditional...
what do you mean? After around 20mins of talking, my friend put in an offer plus cheque for subject to finance, b+p with it valid until 6pm tomorrow in writing
From the Consumer Affairs Victoria website:
If your offer is accepted less than three clear business days before the auction date, you do not get a cooling-off period (time to change your mind).
Does that override a signed contract by both parties?
Or is it a case of "if no conditions stated"?
Or is it a case of "if no conditions stated"?
Again, from the website:
If you are the successful bidder at the auction, you:
will be asked to immediately sign the contract
cannot make the contract subject to conditions and there is no cooling-off period
sign the contract before the seller, to make your formal offer to buy the property. The seller accepts your offer by also signing the contract
have to pay the deposit specified in the contract (unless otherwise agreed).
Looks like it overrides it.
If you are the successful bidder at the auction, you:
will be asked to immediately sign the contract
cannot make the contract subject to conditions and there is no cooling-off period
sign the contract before the seller, to make your formal offer to buy the property. The seller accepts your offer by also signing the contract
have to pay the deposit specified in the contract (unless otherwise agreed).
Looks like it overrides it.
oohhh, thanks aaron,
ive learnt something very important,
I dont think ill ever be in a situation where id be offering 3 days before auction, but thats very very interesting!
My general understanding is that in Victoria that offers 3 days before or after an auction are made under auction conditions. If you're the successful bidder at an auction, you can write down a finance clause but it wouldn't be valid so the same would likely apply to an offer shortly before the auction.
I don't know the legalities of all this, but I don't think I'd want to be put in a position to test it in court.
BTW, 3 days either side means that if the auction is on a weekend, then any any offer from the prior Wednesday to the following Wednesday is under auction conditions.
Agents will work hard to get you to sign a contract within a few days of the auction becuase they know it's unconditional. As they're not representing the buyer, they're not under any obligation to tell you this.
I don't know the legalities of all this, but I don't think I'd want to be put in a position to test it in court.
BTW, 3 days either side means that if the auction is on a weekend, then any any offer from the prior Wednesday to the following Wednesday is under auction conditions.
Agents will work hard to get you to sign a contract within a few days of the auction becuase they know it's unconditional. As they're not representing the buyer, they're not under any obligation to tell you this.
I just asked my friend, and his offer was not subject any conditions, except for valid for 24 hours, is a time limit on an offer considered as a condition???
must admit, the agent who said something like he'd been in the industry 5years+ must know it, and I dont know if any conditions were discussed but I find that pretty darn deceptive behavior,
imagine what he's reaction would have been if my friend had started talking about inserting clauses
is it 3 business days of acceptance ? or 3 business days of when the offer is actually presented?
so hypothetically, if I put an offer on Buckingham Palace for $500million subject to a condition that princess Diana must sign the paperwork, and subject to finance and BP, 6months and 3 days before auction date, with a time limit of 6 months, with the 6 months offer expiring on Wednesday at 12pm (today) for an auction for saturday at 1pm,
then im literally royally screwed
I went to an auction not so long ago (nearby, idle curiosity). There were no bids. Before passing the property in the auctioneer said he had to state there were two signed contracts but were subject to conditions. These would be considered if the property was passed in. This was in Qld.
Marg
Marg
