Subject to Sale clause ...

[bennido]

Hi all,

I am selling one of my investment properties and have received a decent offer but with a subject to sale of his PPOR clause.

His PPOR is listed for auction in 3 weeks and my ppty agent is confident that it will be sold on the day (or a cynic would state that's what any agent would say).

I was thinking of accepting the offer but putting some counter clauses in place like ...

- Sunset clause set to some time just after the auction date
- Free to accept a better offer in the meantime but will give him 72 hrs to match it and go unconditional (not so sure how to word this but u get the gist)

Do you think this is a good idea with the counter-clauses ? Anything else I should consider ?

This is a new scenario for me (so true that you learn something from every transaction!) and thanks in advance for the help.

 

[Peter_Tersteeg]

...
- Sunset clause set to some time just after the auction date
- Free to accept a better offer in the meantime but will give him 72 hrs to match it and go unconditional (not so sure how to word this but u get the gist)

Obviously they need to sell their property for affordability or deposit reasons. It's not an ideal offer but in the absence of anything else...

The clauses are reasonable, but I'd only give them 24 hours to go unconditional on clause 2. If you get a better offer you don't want to loose it waiting around for them to make up their minds, but you will give them some time to commit.

 

[tobe]

I like the idea of your counter clause about taking up other offers in the meantime. What does your conveyancer think of such a counter clause?

 

[Ausprop]

What does your conveyancer think of such a counter clause?

just wondering why you would want to try to impress a conveyancer?

 

[Joe D]

A "48 hour clause" was pretty common in WA under the Offer and Acceptance Form, but not in a hot market.

Basically, if a purchaser's offer is made subject to the sale of a another property the seller inserts a clause under the special conditions that if the seller receives another unconditional offer, the seller will be given 48 hours to make their offer unconditional.

A good RE agent should continue to market the property until the property goes unconditional.

See the section on page 4 of the attached document.

http://www.reba.wa.gov.au/PDF/Buyers_and_Sellers/Buyers_and_Sellers_P/Sale_by_O_and_A_June_09.pdf