Help writing offer

[onion33]

First time offer here! I'm writing it up for my mum. She is putting an offer in on an acquintance's property. Hence, no real estate agent involved.

Things I will include:
- offer price
- deposit amount (10%)
- settlment days
- conditions
- offer expiry date

1) If I have a pre-approval, do I need any condition about finance?
2) How do I word "satisfactory building and pest inspection"? Obviously "satisfactory" is a subjective term.
3) What have I missed? Do you have a template I should use?

Thanks everyone. Be nice. I'm new to this!

 

[Perp]

There is a standard contract. I strongly suggest you have your offer prepared by a lawyer.

 

[Peter_Tersteeg]

It's always a good idea to have a finance clause in place. That said, often you've got better negotiating power if you don't have it. The pre-approval removes most of the risks, but not all. Best to consult the person who assisted with the pre-approval.

The wording of a building and pest inspection needs to be moderately vague, if it's too specific it can be useless even if a problem is detected. Use words like, "Building and pest inspection within 5 working days of offer acceptance, to the purchases satisfaction".

Normally an REIV standard contract will be used, in the case of a sale without an agent, a contract will be drawn up by the vendors solicitor, but the initial written offer may be a simple letter outlining the things you've already mentioned. Key points to consider:

* Full name of the purchaser.
* Name of the vendor.
* Property address (include title details if possible).
* The purchase price.
* Deposit amount and when this would be paid.
* Settlement date.
* Finance clause must have a specific amount, time frame and lender.

 

[Terry_w]

An offer can become a binding contract if accepted - even if not in a format of the standard contract. Get legal advice.

 

[superAndrew]

3) What have I missed? Do you have a template I should use?

Thanks everyone. Be nice. I'm new to this!

Each state has their own recommended contract. This is the contract they use in VIC for the sale of property.

http://www.consumer.vic.gov.au/libr...ts/sample-contract-of-sale-of-real-estate.doc

You could use like it is or adjust it.

All the best

Andrew

 

[onion33]

Thanks. Some useful points.

I have the Section 32. A contract of sale will be drawn up if the offer is accepted.

Does that change anything with my offer?

 

[sanj]

There is a standard contract. I strongly suggest you have your offer prepared by a lawyer.

I strongly agree with this if you don't know what you're doing

 

[Perp]

A contract of sale will be drawn up if the offer is accepted.

Does that change anything with my offer?

As Terry has said - and he's a lawyer - the written offer can become "the" binding contract if accepted, but would lack all the legal protections of a normal contract of sale. If, for whatever reason, the other party doesn't like the conditions you ask to be inserted for your protection into the "formal" contract of sale you're intending, and you can't reach agreement on the envisaged "formal" contract, the vendor could turn around and force you to buy on the terms outlined in your offer. If the finance clause you draft in your offer, for example, wasn't worded precisely, it could be found to be void and you would have no finance condition at all, but instead an unconditional contract to purchase on the other terms outlined in the offer.

It is really unwise to put anything in writing without legal advice.

 

[onion33]

Thanks guys.

I've found a conveyancer to help write the offer. He seems to know what he's talking about.

 

[onion33]

Offer is now done and accepted.

What can I expect next? Can someone give me an idea of the approx order of-
Building pest inspection
Signing contract
Deposit
Etc

Thanks

 

[Macca]

Offer is now done and accepted.

What can I expect next? Can someone give me an idea of the approx order of-
Building pest inspection
Signing contract
Deposit
Etc

Thanks

You need to work with your conveyancer on this as well, they should be able to advise you on each step along the way. I would ask for a written summary of where to from here.

As they are actually involved in the process you need to know their intentions plus what services you get for the money you are paying them.

 

[Peter_Tersteeg]

First think Monday morning (or sooner if possible), organise the building and pest inspections, and get onto the finance right away.

Your conveyancer or solicitor will want to review the section 32 (if they haven't already).

Organise insurance if it's not insured under a strata corporation (or similar).

Even with appropriate special conditions, it's a good idea to get as much done as possible during the cooling off period.