Quick question about the 0.25% deposit

[gobear]

I would like to clarify, from my understanding....once you sign a contract of the 0.25% deposit to the agent, while the contract has not exchanged yet and is passing it to teh vendor waiting for him\her to sign it, the agent is NOT allowed to show other buyers of the property? Is that right? Or they can still show to the buyer as long as the vendor has not signed the contract yet?

And also, if 0.25% deposit is made specifying the conditions and signing the contract, now while the only thing you can do is wait for teh agent's\vendor's response whether they will accept it or not, how long does it take for the response? In mid way through and I have NOT heard any response from them, can I ask for a 0.25% deposit refund back??

 

[Collector]

Agent can continue to show the property up to the contract has been exchanged unconditional.

So in your case because the vendor has not signed then the agent would normally continue to show/promote the property - and you may be gazumped.

The agent can continue to show the property even after the vendor has signed and the property has been exchanged subject to the cooling off provisions - the agent/vendor wont be able to enter into a new contract with a different purchaser though - but there is nothing stopping them from showing the property in case you rescind.

Plus: because you have paid a deposit (and hopefully have a receipt) then the agent has a obligation to tell you if a higher offer has been made - does not have to tell you what the offer is but must advice you that one has been made.

 

[gobear]

Agent can continue to show the property up to the contract has been exchanged unconditional.

So in your case because the vendor has not signed then the agent would normally continue to show/promote the property - and you may be gazumped.

The agent can continue to show the property even after the vendor has signed and the property has been exchanged subject to the cooling off provisions - the agent/vendor wont be able to enter into a new contract with a different purchaser though - but there is nothing stopping them from showing the property in case you rescind.

Plus: because you have paid a deposit (and hopefully have a receipt) then the agent has a obligation to tell you if a higher offer has been made - does not have to tell you what the offer is but must advice you that one has been made.

Thanks for the answer

I am aware that once the vendor signs the contract and they contact me, the whole thing will proceed ahead, but what about this scenerio? If day 1, if I have already put 0.25% deposit, then when do I expect a reply? If there is no reply say within 3 days, should I contact the agent and say how it is going? If the agent says "the vendor still thinking" or whatever, can I say "sorry, it's taking several days, I want a refund since its taking too long?", is this allowable since there is no timeframe?

From my understanding, I know if they contact me and request to raise the price and I disagree, I can request the 0.25% refund

 

[twobobsworth]

It probably depends which state the property is in.

In nsw I have only ever signed a contract where the offer has been verbally agreed to by the vendor. Buyer signs first, then vendor usually same day/night.

The agent is just as keen to get the deal stiched up and their commission in the bag. If the vendor has verbally agreed they'll be on their door step to get their signature asap. Trying to find a few thousand more from another buyer is not worth their effort. $30 per every extra $1000 pfft.

The contracts should be with your solicitor the next day. The only one exception to this was when a vendor was in Indonesia.

If you've signed contracts and still haven't heard anything after 3 days you should be ringing the agent ASAP.

 

[Collector]

Thanks for the answer

I am aware that once the vendor signs the contract and they contact me, the whole thing will proceed ahead, but what about this scenerio? If day 1, if I have already put 0.25% deposit, then when do I expect a reply? If there is no reply say within 3 days, should I contact the agent and say how it is going? If the agent says "the vendor still thinking" or whatever, can I say "sorry, it's taking several days, I want a refund since its taking too long?", is this allowable since there is no timeframe?

From my understanding, I know if they contact me and request to raise the price and I disagree, I can request the 0.25% refund

You can rescind at any time prior to the vendor signing without penalty.