Hi There,
Got a question about Low Down Deposits.
Here goes…. I recently submited an offer on a comm property in Vic as follows;
Asking price $120K (there was no settlement duration ie 60days)
My Offer….
$110K with a deposit of $1000 and a 60 day settlement Subject to finance and subject to veiwing finacials etc…Offer was accepted but I am told the REA wants 10% deposit.
To my knowedge the deposit just sits in the REA’s trust account and does nothing. Why would she ask for it???
Do I have to cough up the 10%…or is it a simple case of if she doesent accept my low down deposit then the deal is off!!Thanks in Advance[biggrin][biggrin][biggrin]
John
john, if the offer was accepted as submitted then the realtor can ‘whistle’ for it. cannot see why you need to do more.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneWhat the REA wants is 100% of the time completely irrelevant.
They are not a signatory to the contract, they are a mere bystander in the whole transaction.
They generally don’t act like it was fitting their true station in life, and hence less experienced people (in real estate transactions) sometimes get railroaded by them.
In my eyes they are little puppy dogs with no signing authority…and get treated as such in the midst of tansacting RE deals.
until of course something goes wrong, in which case the agent is usually the first to be sued as all of a sudden they play a critical part in the process.
seriosuly tho… the perception that an agent stands by and does nothing but collect a commission at the end is really quite false. holding deals together, dealing with financiers that couldn’t care less about their client, chasing deposits and constantly renegotiating (no it doesn’t stop with a signed O+A) for up to 2 years and beyond is more like the reality.
having said that, the deposit is as per the contract an it is quite weird that the agent would want to depart from that. are you sure they haven’t made a simple mistake and didn’t realise that you had lowballed the deposit?
http://www.megapropertygroup.comINVESTMENT SALES * RENTAL SOLUTIONS * STRATA MANAGEMENT
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