Under Offer/Under Contract in Qld?
- Thread starter Garry K
- Start date
GK
As I understand it:
Under Offer means that an offer has been made to the vendor, but no decision yet made to either accept or decline that offer.
Under contract means an offer has been agreed to, but contracts not yet been signed.
In both cases further offers can be made.
If the deal falls through the property is still for sale.
MB
(waiting for others to correct me if what I have said is wrong).
As I understand it:
Under Offer means that an offer has been made to the vendor, but no decision yet made to either accept or decline that offer.
Under contract means an offer has been agreed to, but contracts not yet been signed.
In both cases further offers can be made.
If the deal falls through the property is still for sale.
MB
(waiting for others to correct me if what I have said is wrong).
I think you are very close to being correct MB364,
To place an offer in QLD, the procedure is to sign a contract FIRST, and then the agent will take this to the seller.
IF the seller accepts the price offered, it is a done deal subject to any conditions placed by the buyer;
eg: Subject to Finance, subject to Pest and Building inspections.
The contract can be rescinded by the buyer within 5 days for any of these conditions not being met.
I will also add that most for sale properties on the Internet, especially the low priced ones are mostly sold.
I have lost count of the number I have rung up about, only to be told that it has been sold, and that the internet hasn't been updated yet.
To place an offer in QLD, the procedure is to sign a contract FIRST, and then the agent will take this to the seller.
IF the seller accepts the price offered, it is a done deal subject to any conditions placed by the buyer;
eg: Subject to Finance, subject to Pest and Building inspections.
The contract can be rescinded by the buyer within 5 days for any of these conditions not being met.
I will also add that most for sale properties on the Internet, especially the low priced ones are mostly sold.
I have lost count of the number I have rung up about, only to be told that it has been sold, and that the internet hasn't been updated yet.
Hi Garry
From what i understand it... under offer is just that, an offer and the person can refuse it. I have seen this as just a verbal, which was accepted and then put on paper as under contract. I don't know if it has to be on paper as an offer "officially" or not. I certainly have made verbal offers where the RE phoned the seller and advised them.
The under contract part is still not a gaurantee the house is off the market by any means. You can put in contract offers as backup contracts. My friend from work lost his buy at Brighton (Bris) like this, the seller had a second contract for higher, he asked for a 2 day extension on finance and was refused, they then sold the house to the second contract for more.
My other friends bought a house at Redcliffe that had 2 more contracts on it after theirs for more. Bet the seller was hoping the finance would fall thru on this one but my friends got it. Other contracts behind them were for 10k and i think 15k more.
The only problem I see is if you put one on as backup and then see something else you want, not sure how that goes for pulling out.
Regarding the 5 day cooling off, ck with current RE as last yr a question on "PAMD Form 30b" states:
Will I lose my deposit if I terminate the contract during the cooling-off period?
Ans: The seller must refund your deposit within 14 days of termination of the contract. However, the seller may deduct a termination penalty equal to 0.25% of the purchase price from the deposit.
So better to pull out on a good finance clause with no loss.
Have to agree with abcdiamond on the internet part, heaps I see around my area are under contract days/weeks before its updated on the net. But must be fair and say I have seen propertys on the web not on any local REs and some with no signs. Don't know why ppl list with REs absolutely miles from the suburb but I would never have found them looking locally, so there is an opportunity that tonnes of ppl will miss.
Chris
From what i understand it... under offer is just that, an offer and the person can refuse it. I have seen this as just a verbal, which was accepted and then put on paper as under contract. I don't know if it has to be on paper as an offer "officially" or not. I certainly have made verbal offers where the RE phoned the seller and advised them.
The under contract part is still not a gaurantee the house is off the market by any means. You can put in contract offers as backup contracts. My friend from work lost his buy at Brighton (Bris) like this, the seller had a second contract for higher, he asked for a 2 day extension on finance and was refused, they then sold the house to the second contract for more.
My other friends bought a house at Redcliffe that had 2 more contracts on it after theirs for more. Bet the seller was hoping the finance would fall thru on this one but my friends got it. Other contracts behind them were for 10k and i think 15k more.
The only problem I see is if you put one on as backup and then see something else you want, not sure how that goes for pulling out.
Regarding the 5 day cooling off, ck with current RE as last yr a question on "PAMD Form 30b" states:
Will I lose my deposit if I terminate the contract during the cooling-off period?
Ans: The seller must refund your deposit within 14 days of termination of the contract. However, the seller may deduct a termination penalty equal to 0.25% of the purchase price from the deposit.
So better to pull out on a good finance clause with no loss.
Have to agree with abcdiamond on the internet part, heaps I see around my area are under contract days/weeks before its updated on the net. But must be fair and say I have seen propertys on the web not on any local REs and some with no signs. Don't know why ppl list with REs absolutely miles from the suburb but I would never have found them looking locally, so there is an opportunity that tonnes of ppl will miss.
Chris
Hi Garry
Just a warning if you are putting a contract on something. See if you can tee up your finance to a point before you see what you want and then make sure your finance clause is long enough - 21 days it is taking at present if you go thru banks. We have just been thru nail biting time - 3 extensions on finance even tho had existing A1 rated investment loan for 12 years. Have since been told (by a bank) that they prefer to deal with brokers. We were lucky vendor was patient and home had very average tenants with months left on lease so wasn't desirable to all. The valuers are all so busy also that this can delay things. Good luck
Mitzi
Just a warning if you are putting a contract on something. See if you can tee up your finance to a point before you see what you want and then make sure your finance clause is long enough - 21 days it is taking at present if you go thru banks. We have just been thru nail biting time - 3 extensions on finance even tho had existing A1 rated investment loan for 12 years. Have since been told (by a bank) that they prefer to deal with brokers. We were lucky vendor was patient and home had very average tenants with months left on lease so wasn't desirable to all. The valuers are all so busy also that this can delay things. Good luck
Mitzi
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