Can I pull back from the offer ?

[scha9799]

Hi All,

I put on an offer for a property on Wednesday. ( 3 business days ago)

I signed the contract and sent the contract to the agent.

I have not yet received any formal signed contract from seller, but agent emailed to me said the offer had been accepted by the seller and need the deposit to be pay to the agent's trust account.


Question here.

If I want to pull out from the offer, will I get any penalty ?

The property is in QLD.


Thanks

 

[pinkboy]

Hi All,

I put on an offer for a property on Wednesday. ( 3 business days ago)

I signed the contract and sent the contract to the agent.

I have not yet received any formal signed contract from seller, but agent emailed to me said the offer had been accepted by the seller and need the deposit to be pay to the agent's trust account.


Question here.

If I want to pull out from the offer, will I get any penalty ?

The property is in QLD.


Thanks

It's not in effect until you (or Solicitor) have received in full a copy of the signed contract.

Write (or get your solicitor) to write a letter something to the effect of 'We have not received a signed copy of the contract, and wish to withdraw the offer.....yada yada yada'. Have it sent by fax, time stamped and ask for a confirmation of receipt of such. I'm sure Daryl (RPI), could steer the direct wording/time line for you.

If the contract has been effected, there is a 5 day cooling off period which will cost you .25% contract price.

pinkboy

 

[redwing]

A cooling-off period of 5 days applies to contracts for the sale of residential property. It will start the day the buyer receives a copy of the contract (signed by both parties).

From the Interweb

 

[Terry_w]

It's not in effect until you (or Solicitor) have received in full a copy of the signed contract.

Write (or get your solicitor) to write a letter something to the effect of 'We have not received a signed copy of the contract, and wish to withdraw the offer.....yada yada yada'. Have it sent by fax, time stamped and ask for a confirmation of receipt of such. I'm sure Daryl (RPI), could steer the direct wording/time line for you.

If the contract has been effected, there is a 5 day cooling off period which will cost you .25% contract price.

pinkboy

But an offer has been made and it has been accepted = binding contract. They have the purchaser's signed contract so they could enforce it against the purchaser in NSW in theory. But in QLD i think the contract must be signed by both parties be it is binding.

But it will depend on the state and I suggest doing what Pinkboy says, write and withdraw your offer. Perhaps speak to your property lawyer first.

 

[Scott No Mates]

You haven't mentioned which in state you have purchased.

Has the property been taken off the market with the open house cancelled? Or just noted as 'under offer'?

 

[pinkboy]

But an offer has been made and it has been accepted = binding contract. They have the purchaser's signed contract so they could enforce it against the purchaser in NSW in theory. But in QLD i think the contract must be signed by both parties be it is binding.

But it will depend on the state and I suggest doing what Pinkboy says, write and withdraw your offer. Perhaps speak to your property lawyer first.

In Qld, it explicitly states in the contact itself:

Steps to take before contract is binding:

The following steps must be completed before the Seller and the Buyer will be bound by the contract:

* The Buyer signs the contract;
* The Seller also signs the contract;
* The Buyer or the Buyer's agent receives a copy of the contract signed by the Buyer and the Seller.

pinkboy

 

[pinkboy]

You haven't mentioned which in state you have purchased.

Has the property been taken off the market with the open house cancelled? Or just noted as 'under offer'?

Got bleary eyes this morning SNM? Says QLD plain as day!


pinkboy

 

[Terry_w]

In Qld, it explicitly states in the contact itself:



pinkboy

Well noted PB. In that case best to put the withdrawal of offer in writing asap.

 

[Scott No Mates]

Got bleary eyes this morning SNM? Says QLD plain as day!


pinkboy

The text wasn't big enuf PB

 

[Darlogus]

I think you will find that the contract may already be in breach if the deposit has not been paid, unless the vendor has not signed, then you can just withdraw the offer. A call to the agent, followed up with A txt message or email to the agent.

 

[scha9799]

Thanks for the above

the fact that I have not yet paid anything.

Does it mean even the contract has been signed, but there is no consideration ( deposit or money change hand), hence the contract is not "binding" ?

Therefore, the contract is not legally a binding contract, then not penalty ??

so legally, I have not even enter into cooling off period ? let alone any penalty applied ?


am I correct ?

 

[pinkboy]

I think you will find that the contract may already be in breach if the deposit has not been paid, unless the vendor has not signed, then you can just withdraw the offer. A call to the agent, followed up with A txt message or email to the agent.

Thanks for the above

the fact that I have not yet paid anything.

Does it mean even the contract has been signed, but there is no consideration ( deposit or money change hand), hence the contract is not "binding" ?

Therefore, the contract is not legally a binding contract, then not penalty ??

so legally, I have not even enter into cooling off period ? let alone any penalty applied ?


am I correct ?

Unless you or your solicitor have a reciprocated signed contract in your possession - there is no contract!!

Unless you have that, there is no deposit required.

For someone who 'buys houses', not very savvy at buying houses.


pinkboy

 

[Terry_w]

Thanks for the above

the fact that I have not yet paid anything.

Does it mean even the contract has been signed, but there is no consideration ( deposit or money change hand), hence the contract is not "binding" ?

Therefore, the contract is not legally a binding contract, then not penalty ??

so legally, I have not even enter into cooling off period ? let alone any penalty applied ?


am I correct ?

No it does not mean that. Consideration doesn't have to be money.

 

[RPI]

In Qld you need to have communication of the acceptance of the offer. This means that if you have been told that the contract has been signed.

On 90% of contracts I can find a way to getout without paying any penalty even if it has been signed by both parties. I am working this afternoon and am happy to answer help out (absolutely no charge, obligation or otherwise). If you would like to flick a copy of the contract to my law firm address I should be able to tell you within 5 mins if there is a way out on that one.

 

[RPI]

No it does not mean that. Consideration doesn't have to be money.

Terry, as an aside to that I did a CPD with a Tax Law Barrister last week whose opinion is that by a shop keeper allowing you to enter there shop this may constitute a supply under the GST Act.

 

[scha9799]

No it does not mean that. Consideration doesn't have to be money.

Hi Terry,

Thank you for your reply.

I understand consideration can be something like a peppercorn.

But in this case, what can the consideration be ?

what can seller/agent use to enforce this contract is a legally binding contract ?

Also the property still on the market ( the agent didn't the advertising take off the market yet).

Thank you

 

[scha9799]

In Qld you need to have communication of the acceptance of the offer. This means that if you have been told that the contract has been signed.

On 90% of contracts I can find a way to getout without paying any penalty even if it has been signed by both parties. I am working this afternoon and am happy to answer help out (absolutely no charge, obligation or otherwise). If you would like to flick a copy of the contract to my law firm address I should be able to tell you within 5 mins if there is a way out on that one.

Hi Darryl,

I just saw your posting.

Really appreciate your assistance

Thank you

 

[Terry_w]

Hi Terry,

Thank you for your reply.

I understand consideration can be something like a peppercorn.

But in this case, what can the consideration be ?

what can seller/agent use to enforce this contract is a legally binding contract ?

Also the property still on the market ( the agent didn't the advertising take off the market yet).

Thank you

Consideration could be a promise

 

[Paul@PFI]

Terry, as an aside to that I did a CPD with a Tax Law Barrister last week whose opinion is that by a shop keeper allowing you to enter there (correction their) shop this may constitute a supply under the GST Act.

Heard it all before. Its a bit of a stretch based on what "supply" means in the ANTS Act. s9.10(2)...Then relying on (1) in any form...and reading the any two of the forms....

The ATO adopt a more literal view in their rulings often based around contracts etc. The simplicity of the ANTS Act was the hallmark that Peter Costello praised at the time that has since been cause for endless rulings and cases.

The Qantas position on unused airtickets and GST centred around this view I recall. They lost. (They argued there was no supply hence no GST. Hence they make 9.09% more)