Incorrect Price on offer: is it valid?

[Property Meister]

Strictly Hypothetical.... well sort of.

I was chatting with a friend who made an offer on a property via email, but unfortunately put in $447k of $347k,

luckily it was sold by the time the agent had received it.

So what is the legislation in regards to typos? My friend was chatting with the agent and the agent did know her offer was going to be under $350k, so if the offer came through for $447k, and the vendor accepted it, would it be a valid contract?

I mean if the price was mistaking put at say $1,347,000 then it is clearly obvious its a mistake and all reasonability should come into effect.

But in todays market $447 might not be such a stupid offer? however, if the agent denies having that conversation or worse still lies and says, yes an offer of $450k was discussed, how legally enofrcible would it have been???

Food for thought?

 

[Propertunity]

You can also withdraw an offer once it is made.

Just the same at auction - you can make a bid and realising a mistake can put up your paddle and withdraw it.

 

[turk]

Hi PM

In relation to Victoria it would only be considered a non binding offer as your
friend has not signed a contract.


Cheers Pete

 

[Property Meister]

Hi PM

In relation to Victoria it would only be considered a non binding offer as your
friend has not signed a contract.


Cheers Pete

ok understood,

so if my friend had entered the correct price the property at $347k, and if the vendor accepted it and signed it, are you saying that it is not valid until my friend signs it?????

 

[The Y-man]

ok understood,

so if my friend had entered the correct price the property at $347k, and if the vendor accepted it and signed it, are you saying that it is not valid until my friend signs it?????

The vendor can't "accept" anything until your friend's offer is presented on a signed contract stating conditions/settlement days etc. Once the vendor signs this, the offer is accepted.

Anything else is just informal noise.

Cheers,

The Y-man

 

[turk]

ok understood,

so if my friend had entered the correct price the property at $347k, and if the vendor accepted it and signed it, are you saying that it is not valid until my friend signs it?????

All depends what "it" is.

As I understand your friends offer was by email, which is non binding.

Both parties then need to sign the contract to make the offer valid.

Cheers

Pete

 

[Property Meister]

great! so email/fax even verbal agreements are merely tools of negotiations?

so if I get an email back from the agent saying "your offer has been accepted" its not binding ie either of us can pull out at anytime,

so if I wanted to get the contract finalised, I would have to QUICK smart get the contract signed by them, and then sign it myself

 

[Propertunity]

Correct! PM

 

[Leikela]

I was chatting with a friend who made an offer on a property via email, but unfortunately put in $447k of $347k,

So what is the legislation in regards to typos?

Seeing as it wasn't a binding offer it doesn't matter, however just say the e-mail was binding and you make a typo then your friend may have been able to get out of it using the "slip rule". I was advised recently by a solicitor that if there is an obvious typo in a contract then it's not binding. It would come down then to proving that it was a typo, so for example you offer $1000000 instead of $100000, that'd be pretty obvious. If that property was listed as $350K then I think it'd be pretty obvious that an offer of $447K would be a typo. This argument probably isn't black and white, it'd have to be proved it was a typo. My recent dispute was an interest rate which would be harder to prove because they fluctuate so much and the figures are already low so a typo isn't so obvious.

 

[The Y-man]

get the contract signed by them, and then sign it myself

Usually the other way around - you sign THEN they sign.

To demystify the process most agent use in Victoria:

1. The agent makes multiple copies of the s32 and contract.

2. Each potential buyer making an offer will sit down with the agent, and fill in 3 copies of the contract/s32 bundle, with their offer price, and any conditions.

3. Once each buyer has made an offer, the signed contracts are presented to the venodr at a meeting, to consider the pros and cons of each offer. The vendor may ask the agent to go back to a particular buyer to renogatiate (stating there is a "better offer" on the table)

4. The vendor decides on an acceptable offer and countersigns all 3 copies of the contract/s32 bundle. One copy is kept by the vendor, one for the successful buyer and one sent to the buyer's solicitor.



Cheers,

The Y-man