Under Contract / Under Offer
- Thread starter yadeh
- Start date
As I discovered early on, don't assume that just because a place has gone "Under Contract" that it is sold (for eg. in Qld there is a statutory cooling off period, in addition to whatever conditions [finance, pest and building, etc] that the purchaser has placed on their offer).
You have nothing to lose by calling the REA and expressing an interest in the place. If things fall through, as they sometimes do, you may still get it.
Mark
You have nothing to lose by calling the REA and expressing an interest in the place. If things fall through, as they sometimes do, you may still get it.
Mark
Pitt St
re
A genius is someone who shoots at something no one else can see , and hits it ...
Does that include all of the people who shoot themselves in the foot
( assumeing their wearing shoes )
See Change
re
A genius is someone who shoots at something no one else can see , and hits it ...
Does that include all of the people who shoot themselves in the foot
( assumeing their wearing shoes ) See Change
I know that an aceptance of offer by two parties constitutes a contract in Queensland, but that doesn't happen in NSW, for instance. I can offer, have the offer accepted pending finance/inspections etc- and withdraw the offer two weeks later if conditions were not satisfactory. It's only when contracts are exchanged that it becomes irrevocable- so it's worth while for the agent to advertise "Under Offer".grubar30 said:
But then, and agent gets exposure from a board- so they may not be in a hurry to remove the advertising when the property has been sold.
I suggest you check with the agent
We bought two properties in Qld a couple of years back,
One was not on the books as a Sydney person was supposed to come up to view the property, but had postponed the trip.
We found out about his while doing inspections of what he had for sale.
Whilst we were in the office doing the paper work, we were quizing the agent for other land in the area, and he told us about a contract which had fallen through,
the contract price was some 10K cheaper than anything else available that we had looked at, We asked if the vendor was prepared to sell it for the same price, the agent checked and all he wanted an extra $2000 for solicitors costs incurred.
Still a great pick up for $8000 under.
cheers
Timm
We bought two properties in Qld a couple of years back,
One was not on the books as a Sydney person was supposed to come up to view the property, but had postponed the trip.
We found out about his while doing inspections of what he had for sale.
Whilst we were in the office doing the paper work, we were quizing the agent for other land in the area, and he told us about a contract which had fallen through,
the contract price was some 10K cheaper than anything else available that we had looked at, We asked if the vendor was prepared to sell it for the same price, the agent checked and all he wanted an extra $2000 for solicitors costs incurred.
Still a great pick up for $8000 under.
cheers
Timm
grubar30 said:
Real estate contracts are completed in Qld very differently than southern states. We do not "exchange" contracts. A buyer makes an offer via a contract drawn up by the agent who then presents it to the buyer immediately (normally) and negotiations continue until an agreement is reached or the buyer withdraws. The solicitors are not normally involved until after the contract is signed by all parties. At this point the contract has conditions which are dealt with whilst the property is under contract to the buyer.
Most agencies will then place the property "under contract" as buyers get annoyed, understandably, when they enquire about a property which has now gone under contract. It is possible however if the buyer cannot or does not mean the conditions of the contract that it may be placed back onto the market for sale. Under contract is placed on the property so the process doesn't have to be completely re-instated again if the sale does not go through.
Hope this helps.
Kev
www.kevinhockey.com.au
Kevin Hockey said:
Kev,
basically the same procedure in Victoria although not all contracts are conditional (have conditions).
If there are no conditions on the contract (unconditional contract), then it's a deal (SOLD), but only after the cooling off period expires (if a cooling off period is applicable).
BTW, the cooling off period, if applicable, is only of benefit to the purchaser, The Vendor does not have any cooling off period.
regards
Never assume that if a property in under contract, or under offer, that you cannot put in place another contract, subject to the first one not proceeding.
I recently missed out on a terrific deal. Two and a half acres of Brisbane river frontage with a 4br house etc for just over $300k. The REA said it was under contract and was very likely to go through. I said, OK and let me know if by some chance the contract doesn't settle.
I have just discovered, the contract DID fall through, and immediately the REA called someone else who was interested, not myself. They bought it quick smart, the contract settled, and I missed out again.
If I had put a second contract in subject to the first, I would not have missed out.
I recently missed out on a terrific deal. Two and a half acres of Brisbane river frontage with a 4br house etc for just over $300k. The REA said it was under contract and was very likely to go through. I said, OK and let me know if by some chance the contract doesn't settle.
I have just discovered, the contract DID fall through, and immediately the REA called someone else who was interested, not myself. They bought it quick smart, the contract settled, and I missed out again.
If I had put a second contract in subject to the first, I would not have missed out.
grubar30 said:
Brenda could have a contract drawn up which immediately takes effect if the previous contract defaults. Its called a "back up" contract.
Jakk, yes same scenario here however I was replying based on why "under contract" is placed on property. If it was a cash unconditional contract this would not need apply.
Kev
www.kevinhockey.com.au
Hi all
Once again, to add to what Kev has said, (I'm making a habit of this) putting 'under contract' or 'under offer' on a property is up to the agent.
As a salesman, I'll only put it on the property if I'm fairly confident it will go through, eg - subject to finance, buyers have a good income and are only borrowing 80% or less OR subject to building inspection and the house is just a few years old etc. In these cases I'll use my judgement, decide the conditions aren't a problem and stick 'under contract' on it.
If I think that finance is a bit tight or its an old place with floors that have a bit of fall in them, I'll hold back till the conditions have been waived. This way, I'll passively continue to market the property and not deter people from enquiring so that we have a back up buyer if the first contract does in fact fall through. As soon as a buyer calls on the said property, I explain to them were we're at so they are fully informed and know the situation. Some may get annoyed but most understand.
Remember that as agents, we're employed to get the best outcome for the vendor while at the same time being fair to the purchaser. At the end of the day, our desired result is to acheive the vendor's objectives, and that is a sale with the best possible price, conditions and time frame that suits them.
Cheers
Once again, to add to what Kev has said, (I'm making a habit of this) putting 'under contract' or 'under offer' on a property is up to the agent.
As a salesman, I'll only put it on the property if I'm fairly confident it will go through, eg - subject to finance, buyers have a good income and are only borrowing 80% or less OR subject to building inspection and the house is just a few years old etc. In these cases I'll use my judgement, decide the conditions aren't a problem and stick 'under contract' on it.
If I think that finance is a bit tight or its an old place with floors that have a bit of fall in them, I'll hold back till the conditions have been waived. This way, I'll passively continue to market the property and not deter people from enquiring so that we have a back up buyer if the first contract does in fact fall through. As soon as a buyer calls on the said property, I explain to them were we're at so they are fully informed and know the situation. Some may get annoyed but most understand.
Remember that as agents, we're employed to get the best outcome for the vendor while at the same time being fair to the purchaser. At the end of the day, our desired result is to acheive the vendor's objectives, and that is a sale with the best possible price, conditions and time frame that suits them.
Cheers
Thanks Kevin. Though the fact that Brenda didn’t do that simply shows she didn’t expect the RE agent to bypass her. Obviously he gave her his word but reneged.
Sultan of Swing, interesting what you wrote.
Metaphorically speaking, it's like your pulling in a monster fish on your reel, but you've still got another line of bait dangling in the water, just in case the catch doesn’t satisfy you. Fair call I guess.
Sultan of Swing, interesting what you wrote.
Metaphorically speaking, it's like your pulling in a monster fish on your reel, but you've still got another line of bait dangling in the water, just in case the catch doesn’t satisfy you. Fair call I guess.
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