I have just made an offer on a unit in the sydney CBD (not CF+) Adopting some of the tools Steve gives us, I made the offer in writing. this offer had 3 terms
1 / $1000.00 deposit
2 / I need to see relevant tenant documents (Currntly tenanted)
3 / Subject to contract being approved by my solicitor & myselfThis being my first ever home purchase I’m a little wet behind the ears.
My offer was emailed to the REA and within 2 hours I received a reply of “offer accpeted”
My problem is that the contract I received from the vendors solicitor contains none of my conditions or terms. Namely, I have to put down 10% deposit when I sign the contract. The REA seems to be brushing me off saying that this is the way they are all done. also, he claims that for him to give me any evidence of rental payments made by the tenant is a breach of confidentiality laws.
Any thoughts people?
Pete
Audiocorgan
Hi there
I am in the middle of reading ‘Don’t sign anything’ by Neil Jenman (ex REA). All I can say is ‘DON’T SIGN ANYTHING’ until you are happy with the contract. In order to be fully happy you would want to know that you have had legal advice from a lawyer, you have been able to do all of your due diligence by viewing rental agreements etc. If that means you have to walk away then do it! Although I could imagine that the REA won’t let you walk away, he would be just testing the water to see if you know your stuff. I don’t think there is any set legal amount for the deposit but the REA’s like to know there is enough in there to cover their own fees. As Neil says “it’s better to offend someone than to fight someone because you said yes too soon”. Good LuckJulie Fisher
Daryl Fisher HomesThis is the standard ‘try on’ by the agent. There is no law (that I know of) saying you must pay 10% deposit. I and many other forumites pay $1,000 as a deposit all the time. The Vendor doesn’t care usually – only the agent.
The agents don’t like this, especially if the settlement is a long one, as they can’t apply to have the deposit released and get their commission as there is not enough money in the deposit to cover it.
The agent must supply a copy of the tenancy agreement if you request it as part of the conditions. Maybe there is no contract; I have heard stories of agents passing their brother or cousin off as a tenant to get a sale from an investor. You take settlement and find out the place is empty.
You need to write your conditions that you want on the contract yourself – don’t rely on the agent to do it. You can even write the conditions on a separate sheet and staple it to the contract and write in ‘as per attached sheet of conditions’. Control as much of the purchase as you can.
If you want to be really nasty you could contact the Vendor directly and suggest that the agent is not following your instructions and is endangering the Vendor’s sale, and if you haven’t signed the contract yet you could simply inform the agent that the offer is withdrawn and tell him/her why, and inform the Vendor directly about this as well. They will probably come running back, and if you want to be even nastier, you can drop your offer by another $5k for the ‘inconvenience and extra stress’ they have placed on you. I love upsetting slimy agents.
Stick to your guns, and threaten to take your cheque-book elsewhere. And you should be able to comfortably say this – there should be no emotion on your apart; you are an investor and there is another deal of the century tomorrow. You are in the position of control, play it by your rules or no play.
By the way; how much under the asking price did you offer? If it wasn’t AT LEAST 10% then you are probably paying too much. Judging by the quick acceptance of your offer, I would say this is the case.
Also, I agree with Julie; look at the Neil Jenman site and read his books. I suggest you send him a direct email; he is very approachable and happy to help people like you. I am a big fan of Neil’s – have been for years, and have used his Homeseller’s Protection Guarantee on every sale I’ve made.
Cheers,
Marc.
[email protected]“we get sent lemons; it’s up to us to make lemonade”
Hi audiocorgan,
You don’t have to sign the contract if you believe the terms/conditions on your offer are not met. In this case it is quite clear the terms are not met.
You should probably pull out of the deal because if the vendor accepted your offer within 2 hours, you have probably offered too much anyways.
Sanjiv
*******“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
I tend to agree with LA Aussie:
“Judging by the quick acceptance of your offer” … you’re paying too much.
Negotiate hard ball… Start with the 1%
if they don’t like it, take your cheque book elsewhere.There’s nothing worse than buying a property at a price that you don’t like.
Remember YOU’RE the customer!
Happy bidding.
Thanks people,
My gut instinct is telling me very similar things. I think all I needed was some confirmation from my peers before I acted accordingly.
I have explained to the REA that I’m flexible on terms OR price. NOT on both. And to call me when he’s prepared to negotiate on either.
I’m yet to hear from him.
TBC……
Audiocorgan
Hi Marc,
What exactly is the Homesellers Protection Guarantee?
T.[blush2]
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