multiple offers in QLD legal Q?

Discussion in 'Legal Issues' started by TMNT, 22nd Apr, 2015.

  1. TMNT

    TMNT Member

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    Just curious, in qld, a lot of the agents want buyers to sign form 27c/30c forms to pass onto the owners understandable instead of verbal "will you accept $XXXk?" type of situations,

    since its a signed contract , signed by you and not by them,

    if you are making multiple offers and dont want more then one offer legally binding, what do you guys do?

    can you send the contract with an expiry date on the email but not the contract?

    friend is making offers in rockhampton
     
  2. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    You can make multiple offers. As soon as one is accepted, send an email to the agent to withdraw the others.

    It's also worthwhile to put a sunset clause in your offers (this offer will expire by x date or sooner by email notification).

    Most states also let you exit a contract under a cooling off period.
     
  3. TMNT

    TMNT Member

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    yeah thats what I thought however,

    dont you lose 0.25% or similar if you exit under the cooling off period

    and how does it work if you put in the email, this offer is valid for 24 hours, and send the contract signed as an attachement, there is no mention of the expiry in the contract itself, so if the other party signs it, then its a valid contract????
     
  4. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    You probably wouldn't want to rely on the cooling off period. As you suggest it would cost a bit. I'd treat it as a backup plan.

    Put the expiry clause in the special conditions of the contract. I don't know if putting it in an email is legal or not, but better in the actual contract.

    The main thing I'd suggest relying on would be notifying them what you're withdrawing the offer prior to the vendor accepting the offer.
     
  5. TMNT

    TMNT Member

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    cool, so putting an expiry in the special conditions is what everyone does and the safest way when putting in multiple offers?

    obviously once one is accepted youd let the other agent know, however if the owners wanted to be difficult and wanted to sell the property at all costs, you obviously dont want to get solicitors involved.

    so I guess you would be legally liable to have signed a binding contract if in the small window that first offer is accepted to you withdrawing!
     
  6. pinkboy

    pinkboy SS Lookerafterer

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    ^^ This nails it in Qld.

    In almost all cases in Qld, a signed contract IS your offer. None of the email/texting/pigeon back and forth as with other states.

    pinkboy
     
  7. RetireRich101

    RetireRich101 Member

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    In QLD, they have a B&P and Financial Clause, which is generally 7 and 14 days. Some can negotiate longer

    During this period you can withdrawn with out any penalty.

    QLD also have the 5 days cooling off period, but incurs a penalty if you withdrawn with that 5 day cooling off.

    I came across a listing, where the buyer extend after extend under the Fin Clause, and after some 10 weeks, he decide not to buy. Within the clause, you can ask for extension, if seller doesn't grant it, you walk away. They say it's a walk away jail free card.
     
  8. vbplease

    vbplease Still on my L plates

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    I think there may be some confusion with the forms you mentioned. Both the 27c and 30c are no longer used. Agents don't have to dislose their commission and the warning statement is part of the REIQ contract.

    The agent may push for "expression of interest" to have a bit more weight than a verbal offer.. which isn't a binding contract. The only thing binding is the REIQ contract.

    Having two signed contracts at the same time may not be ideal.. unless you have the finance clause in. Follow through with the contract you want, then pull out on the other due to lack of finance.. if you can afford both, buy both :)
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker/strategist

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    Not really. Under these conditions you can withdraw if you're declined finance or if there are B&P issues, but you can't back out using this because you no longer want the property.

    There has been a few cases where people backed out because they were told they wouldn't be eligible for finance. They didn't bother to actually apply and were successfully sued for the deposit.
     
  10. RetireRich101

    RetireRich101 Member

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    There were many past post on this topic for QLD purchase.
    Would you able to walk way in dont have deposit? or you wish to borrow 100% and bank will not allow? Would you Broker think of a letter to deny fiance etc?

    failing that there must at least a defect in the B&P you can use in your favor to walk away, try to negotiate a big discount and if seller dont agree, what to do next.

    It's dirty and ugly game I am playing here, but in realty in a rising market, properties get snapped up so quickly you can't afford to miss out because a 'special condition' that seller requires headache to decide.In a situation, 2 buyer arriving same time, same price, but 1 with special conditions that smells like an exist strategy on paper, I know who I would chose if I was the buyer.
     
  11. RPI

    RPI Member

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    Correct

    You don't have to be reasonable about your B&P satisfaction, as long as you actually got a B&P inspection.

    Likewise, you don't have to be reasonable about your finance offer, as long as you were reasonable in your attempts to apply.

    For multiple offers you can include not only that the offer is subject to the buyer receiving a fully executed copy of the contract by a certain date but that the buyer may terminate the contract within ?? (usually later the same day or the next day at most) of receiving the fully executed contract.

    We have these in contracts regularly and never get any push back from agents unless the period of termination is too long.
     
  12. RetireRich101

    RetireRich101 Member

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    Like this one, how does the Selling agent or seller know the progress of your application with the bank. It could take 14 days or 28 days to approve. Some initial loan approval are conditional and subject final approval when you cut the Citibank card for example. Your wouldn't want to go past the 14 fin clause without an unconditional loan approval.

    When 14 days financial clause is expiring, you advise you need more time. If Seller does not agree, there is your exit clause.

    I wouldn't like to be a seller in QLD, as it appears to be more favorable to buyer.
     
  13. RPI

    RPI Member

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    Exactly, that is another way out. Finance and B&P are also not deeming, so after 5pm on the date the Buyer maintains an ongoing right of termination but the Seller now has a right of termination. That is the Seller's only remedy. It would be interesting to see what a court would say if a Buyer never applied for finance or got a B&P but didn't inform the Seller. If the Buyer terminated in those circumstances then a Court has found that they don't have a right to terminate under those conditions because they have not complied with their obligations. But if they never informed them and juts let it hang until the Seller got annoyed then it would be the Seller terminating.