Oh, in that case you don't really have a contract then, only an offer. Once you do get the contract you can then amend any terms (which would be a counter offer).
OK, thanks for explaining that, it makes sense now....
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
Oh, in that case you don't really have a contract then, only an offer. Once you do get the contract you can then amend any terms (which would be a counter offer).
If the purchaser had such an 'unstable' finance position that they couldn't complete, they would probably have included a "subject to finance" clause. The clause is their "get out of jail free" card; no forfeiture of deposit.
I have not seen the contract yet, that is the thing I'm confused about. I only got a letter from the agent just before Christmas to say they are holding a deposit. I also had a brief phone conversation when they called me and I accepted the offer. I also heard from the solicitor (picked by the agent for me when i met them) and he confirmed that he would send me the contract.
So that is why I'm a little confused about the clause for the deposit as I have not seen the contract or the conditions the deposit is held and any clauses for the deposit.
I dont think that is the case in NSW. There is the cooling off period, where they have just paid their holding deposit. But once the contracts are exchanged and the cooling off period finished, then there is no turning back.
In Vic and Qld (where we've bought), my understanding is that the typical "subject to purchaser sourcing finance suitable to their requirements by xx/xx/xx" clause gives an 'out' until that date. Assuming the purchaser is seriously attempting to get finance, that date may also be extended by mutual agreement. I might not quite have this exactly right, but last purchase in Qld, it took us 20+ days to get finance sorted, and so the contract was not unconditional until that time!
Here is an update:
it is now 25th of Jan and I still have no idea on what is going on here?
The solicitor was on holiday and I had to leave phone messages and he finally got back to me about the 9th and he was able to answer my questions I had after reading the contract.
He then said to sign the front page only and send that back to him. So I did and then after nearly a week he tells me I should have also sent the rest of the contract back even though I did not have to sign the rest of it. agghh - That seemed weird that he had to wait for me to do that since I would have assumed he has another copy and I didn't have to sign any of these pages but I guess it is how they do things.
Anyway it has been at least 10 - 14 days since they were returned. I called last week and he said he was still waiting for the vendors solicitor to get the contract back to him and I said I hope to hear back early this week and he said he hoped as well. It is now Wednesday and I have heard nothing. I really don't like this at all.
Hi Home
Until you get their signed contract you don't have a binding contract. Be aware that they could pull out still.
OK thanks. Are they required to have it back in a time frame etc?
Nope. You (or solicitor) could start ringing and threatening to pull out etc or wait.
really, that is interesting, I'm a but annoyed now that we could have given them a time frame way back in December as now I'm in the position of waiting for them but I guess since they have paid the deposit then they have to go ahead with it anyway otherwise I get to keep that (-agents fee)!
I don't think you will be able to keep their deposit (not the 10% anyway) until they enter into the contract and it is exchanged - and then not if they pull out during the cooling off period.
I need to sell all my properties in this case, too many loopholes when trying to sell. I think it's better to get out of this market with so many loopholes like this. I'm at the mercy of one buyer, apparently they are trying to get finance approved officially. We would have been better to have the agent still showing other buyers in this time and the first one to complete the contract gets the home. At the moment this is ridiculous waiting for them to get it together while I have plans to make, not waiting for them to get things sorted out, they have had a month to do that gggrr.
anyway thanks Terry for your feedback.
This is not a loophole. The thing is you don't have any binding agreement until the contract is signed and exchanged. Most people don't take their property off the market until this happens because:
1. It hasn't sold, and
2. you could get a better offer.
I accepted the offer already back last month so I guess that means it's too late to ask the agent to start showing others through and take other offers? In other words could I just forget about this current vendor and let them do their thing in the background but in the mean time try to find another buyer and get them to start the contract etc if they want to buy it?
Until contracts are exchanged you could. Does your solicitor still hold your signed contract? Maybe you should get solicitor to write to the otherside saying the property will be put back on the market unless their signed contract is received by 5pm tomorrow.