At what point does exchange occur: NSW?

[TMNT]

just curious, im not from NSW

but have been told that while a property is under contract, until exchange, the vendor can sell to someone else , where as the definition of excahnge is when BOTH the vendor and purchasers solicitors have PHYSICALLY excahnged both the contracts, one signed by the vendor and one by the buyer, ie 2 separate documents?

the above def is what ive been quoted,

can anybody confirm, if the def is correct and at which point does it become unconditional, have had an offer accepted 3 weeks ago, ad says under contract, agent has been telling everyone its sold, but conveyancer saying, he hasnt received the docs yet so doenst know if its a blank copy or the vendor signed copy

thansk everyone

great site!

 

[Terry_w]

A contract for land is unenforceable until you have the other party's contract with their signatures on it.

So exchange itself doesn't really matter. What matters is if you have a contract with the other party's signature on it.

 

[TMNT]

A contract for land is unenforceable until you have the other party's contract with their signatures on it.

So exchange itself doesn't really matter. What matters is if you have a contract with the other party's signature on it.

yeah I agree, but isnt exchange defined by when both parties give eachother the signed contract?

 

[Terry_w]

yeah I agree, but isnt exchange defined by when both parties give eachother the signed contract?

Yes. it is the swapping of the contracts. But that doesn't mean you are not locked in if they have your contract but you don't have theirs....

 

[TMNT]

Yes. it is the swapping of the contracts. But that doesn't mean you are not locked in if they have your contract but you don't have theirs....

ok, its a bit late at night for me, too many complex words

so are you saying that i cannot be gazumped at which point? after 2 separate docs are signed given to each other? or upong both signing but not exchanged?

 

[Terry_w]

ok, its a bit late at night for me, too many complex words

so are you saying that i cannot be gazumped at which point? after 2 separate docs are signed given to each other? or upong both signing but not exchanged?

If you have, in your hands, an unconditional contract properly executed by the other party, you should be pretty safe.

 

[TMNT]

If you have, in your hands, an unconditional contract properly executed by the other party, you should be pretty safe.

Got it

So as long as I have a copy of their ssigned one, I'm pretty much over the line?

However since I don't have it at this point they can change their mind at anytime

 

[Terry_w]

Got it

So as long as I have a copy of their ssigned one, I'm pretty much over the line?

However since I don't have it at this point they can change their mind at anytime

Yes, if you don't have a written contract then all you have is an oral agreement really.

There may be some arguments you could run to say there was a contract, but without one you are not in a safe position.

 

[Marty McDonald]

Last week client of mine (nsw) had an offer accepted, signed their copy of the contract and got the bank cheque to the agent only to be told later that day that the vendor had signed with another party. No mention on this by the agent until the sorry its been sold call from the solicitor.

It's not a great system really. I prefer the one contract states.

 

[TMNT]

ok, so I think I got it,

once the vendor signs, and sticks it in the post, then its pretty much unconditional since they cant retract it and there is a signed contract,
or email or fax I guess

 

[Aaron_C]

It's not a great system really. I prefer the one contract states.

Me too. It ends up being a farce with 10 contracts going out all at once. Very strange way of doing things.