Gday there
Hope your all having a great day.
I am close to making offers, and I still need to do all the regular inspections and all that sort of thing.
What I wanted to know was if the vendor accepts my offer (but contracts haven’t been signed) can he then go and accept another offer without telling me ?
My offer will be subject to completion of all aspects of my due diligence. What I want to make sure is that I am not throwing money down the drain on inspections if the vendor has other subsequent offers.
Does my written offer and his “acceptance” of this constitute a contract and lock the vendor into me ?
thanks for your help!
Cheers,
Andrew.[cap]Where are you?
It’s different for different states.[blink]
Regards,Sharon
Hi Shaz,
Sorry – I am buying in NSW.
Cheers,
Andrew.[cap]Hi there,
thanks for the reply.
What I am trying to avoid is throwing money into inspections without having secured the property.
From what your saying, it seems that an offer is not much really. Even if I put all these subject to clauses in…
I suppose the only way would be to put the clauses into the actual contract itself…
Andrew.
Hey there,
You can put all your protection notations and sign with deposit ($500) or less and can pull out.Spending $500 and finding something wrong with the house… reopens the sales price as you thought the home was in good condition…. you can do many things….
1. if something is wrong with the home you could leave the sales price the same and add a clause into the contract giving seller the options of either fixing it prior to settlement (pending final inspection prior to settlement) or taking the ammount out of the settlement funds to cover the repairs.
2. you can take early posession and carry the repairs out yourself meanwhile readjusting the sales price to cover the time and effort required.
3. Just get a discount and be done with it.Ther are a million things you can do to cover yourself in these types of situations.
Cheers
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Kiwi Has some really good points about using building reports et al as a tool during the intial and final negotiation process. In softer markets you may find that vendors will be willing to repair defects that the building reports show up or make a concession on the price. (Actually, I should not generalise. You may find that sort of vendor in any market.)
.
However, you might find that during your investing career you may have to sometimes pay upfront for due dilligence reports and still not secure the deal. Probably a small price to pay in the long run.
.
My original point was that in NSW vendors are in no way bound unless there has been an exchange of contracts. However, as kiwi says you could exchange “subject to” building and finance etc.
.
Best of Luck.Hi there,
thanks for all the replies – these replies have been extremely helpful.
Basically I was just trying to guage what sort of standing the actual offers that I make are. I have got the buyer beware templates and I guess I just assumed that because it is written it is more ‘binding’ in a sense.
I will be sure to add those recommendations as conditions.
thanks again for all your help! [cap]
Cheers,
Andrew.
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