Is this the normal practice?

[=confused=]

Hi guys,

This is such a great website. I wish I had found this before buying a property. I live in VIC.

I don't know if I've been tricked by the RE, but here is my story.

We inspected the property on Saturday 11 October. The property was advertised for $380,000. We offered $375,000 on that day we and signed the contract of sale with $500 cash deposit. The contract has 2 extra clauses: finance and building inspection.

On Monday the estate agent told us that the vendor didn’t accept. We didn’t want to raise our offer either, so we stay put at $375,000.
On Tuesday noon, the estate agent told us that our offer has been accepted.
On that sameday, Mr. Rudd announced the $7000 extra.

I have 2 questions:
1. I'd thought that we just need to give written offer on Saturday, not signing the contract. Is this the standard practice?

2. Would I still be eligible for the extra grant considering the vendor agreed on 14/10/08, although the contract is signed on 11/10/08?

Thanks for all answers.

 

[vbplease]

Its not a contract until both parties have signed. If the vendor signed on Tuesday the 14th then you should be entitled to the updated grant

 

[Jason Rose]

It is not a contract until both parties have signed the contract, up until that point of time all it was is an offer.

The date you signed the offer does not affect your grant it goes on the contract date.

 

[=confused=]

Thanks for the answer guys.
So it is a common practice for one party to sign the contract of sale, as an offer gesture.

I'm relieved now... phew

 

[Petal]

As long as the vendor signs on or after the 14th you will get the extra grant.