Offer & Contract Price

[mwac]

I have questions regarding making offers to certain conditions and the conditions on the contract.

Are the conditional offers a binding contract if the vendor accepts? (NSW).

I will be putting two conditions when I make offers:
the pest control/building inspection & subject to finance conditions

Is the contract supposed to contain the conditions on the offer?

I'm a little confused because you can make an offer to certain conditions, but shouldn't the conditions going to be in the contract anyway if the offer had been accepted?

Trying to get my head around this.


Thank You
-John

 

[Big Will]

1. Are the conditional offers a binding contract if the vendor accepts? (NSW).

2. Is the contract supposed to contain the conditions on the offer?

3.I'm a little confused because you can make an offer to certain conditions, but shouldn't the conditions going to be in the contract anyway if the offer had been accepted?

1. Yes if it is written into contract of sale

2. Yes

3. Yes, if you are talking about a verbal offer was accepted you would want this to be documented on the contract of sale which your offer should be written into.

 

[alexlee]

NSW contracts have a cooling off period, standard is 5 days though you can change this.

Usually, you do inspections and get finance approval within the cooling off period. You have the option of pulling out of the contract during the cooling off period, but you lose the 0.25% deposit that you pay when the contract is accepted.

 

[mwac]

Usually, you do inspections and get finance approval within the cooling off period. You have the option of pulling out of the contract during the cooling off period, but you lose the 0.25% deposit that you pay when the contract is accepted.

Even if you pull out of the contact because the conditions on the contract weren't met e.g satisfactory pest/building inspection, you still lost the .25% deposit?

 

[alexlee]

Even if you pull out of the contact because the conditions on the contract weren't met e.g satisfactory pest/building inspection, you still lost the .25% deposit?

Correct. That's how the standard NSW contract works.

 

[mwac]

Now it makes sense.

Thank You
-John

 

[Propertunity]

Even if you pull out of the contact because the conditions on the contract weren't met e.g satisfactory pest/building inspection, you still lost the .25% deposit?

You do not exchange (normally) with any "subject to" clauses in NSW as you can rescind in the 5 day cooling off period for any reason at all. But if you do rescind, you will forfeit the 0.25% deposit - that's the price you pay for having complete control of property for 1-2 weeks.

See more on how it works here:
http://somersoft.com/forums/showpost.php?p=630726&postcount=30

 

[Terry_w]

An offer on the back of an enveelop could be binding if it was accepted. But if the contract didn't contain certain searches the purchaser could rescind before settlement.

Best to verbally get an offer accepted and then the formal contract amended with conditions before signing.