Under contract - what does this mean?

[giraffez]

What does it mean when a property is under contract? Is a deposit or the 0.25% made at this point?

 

[twobobsworth]

Depends on the agent.

Sometimes it means the contracts have been exchanged and are in cooling off. Although sometimes agents want to stretch out their signage for longer and will wait for cooling off to finish, whack the under contract sticker on for a week, followed by the sold sticker.

 

[giraffez]

so is this when the agent sends a sales advice to the vendor's solicitor to inform of the offer? Does the sales advice have any legal binding meaning to it or is it really just FYI.


Can the property be classed 'under offer' and yet no contract exchange and deposit received?

 

[twobobsworth]

If it's in NSW the agent will typically do the exchange then fax off the sales advice and the contracts.

 

[giraffez]

Ok thanks for that

 

[Aaron_C]

It just means an offer has been accepted by the vendor.