My hubby & I have made an offer on a IP (Our first one) and the offer has just been accepted.
However, we just realised that we have made an error in our calculations. What we thought was going to be a +ve IP has now turned into a -ve one. A mistake we will not repeat again.
We have not received or signed a contract yet, and our offer was subject to finance & building/pest reports.
Can anyone tell me what legal options we have for getting out of this or withdrawing our offer at this stage?
we are only newbies and this is our 1st IP. (as you can tell!)
PLEASE HELP US – ANYONE!!! [
]You havent signed a contract so relax… No contract = no deal. All you do is tell the agent you have reconsidered and decided not to proceed.
Alternatively, redo your numbers and work out if you can offer a lower amount that will be + CF for you, and reduce your offer. They may not accept but that’s what you could do.
You could even do what someone did to me recently (I am in the process of selling an IP) and go in to sign the contract then scream at the real estate agent “NO! we are paying TOO MUCH!” and then tear up the contract in front of them and storm out!
Bit melodramatic I know, but it happened!
Tas [
]By the way, even if you had signed the contract you could probably have used the finance clause to get out of it (i.e. make yourselves look bad to a lender and get declined).
All up, as your first IP congrats on giving it a go and don’t let this little upset stop you from trying again. The first one is hard as you’re not sure what you dont know, after that it gets much less confusing.
Tas [
]Ouch…
Contact the Agent or Vendor by phone immediately and advise them that you are withdrawing your offer. Follow that up in writing.
You don’t have to give any reason. If you did you would feel foolish. MAKE THAT PHONE CALL.
Put yourself in the owners shoes….You would want to know if a buyer on any deal you put together had a change of heart.
They may not be happy…but will appreciate your phone call eventually.
Part of your learning curve..You have not commited yourself legally, you don’t even need a Solicitor to get you out…cause you ain’t in yet.
Billfromoz
I think it depends on which State you are in as in WA i believe you will find acceptance is binding.
HOWEVER – if you have conditions just use them as a reason – ie cannot get finance just get aletter from your finance co after assuring them you will buy elsewhere,. Or get a doubtful pest report???
Again be creative and try to change the deal as Tas Investor saysCobra
Thanks for your advice Tas, Bill & Cobra.
I took your advice, contacted the agent and told them that we had reconsidered. The agent was ok about it as she still hadn’t done up a contract as yet. SO all is well again. PHEW!!!
DOn’t worry we aren’t giving up, but are a bit more wise about doing our sums.THanks again for your help. [
]
]
]
The topic ‘NEED ADVICE _ URGENT!!!’ is closed to new replies.
