Hi All,
Wondering if I can get some needed advise. Regarding withdrawal of offer, if letter of offer has been issued to the RE agent and no deposits what so ever was given. What issues will I have to withdraw the offer and what will I have to do? Do I just notify the RE agent in writing?
The offer has not been accepted as far as I know. Only thing the RE agent sent was section 32 and contract of sale, with no signatures from vendor. No contracts were signed.Thanks guys.
Have you signed the contracts? If not, you don’t have to do anything. Happend to me last week. If you have signed contracts, the vendor must sign within 3 days otherwise the contract is terminated. This is the case for Victoria any way.
Sorry just re read your post and no contracts were signed. Basically you can just walk away.
awesome. Thanks alot Joe!
jmsrachel wrote:Have you signed the contracts? If not, you don't have to do anything. Happend to me last week. If you have signed contracts, the vendor must sign within 3 days otherwise the contract is terminated. This is the case for Victoria any way.This is not necessarily true. The letter of offer could be the contract.
To withdraw the offer immediately write to the otherside before they accept.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I won’t argue with Terry because he certainly knows his stuff, but if no contracts are signed wouldn’t it be hard for the real estate agent or solicitor to take it further?
Well, it could be and it would usually stop there.
But with contract law there only needs to be a few things for a binding contract relating to land:
1. Price
2. Parties
3. Property identification
4.I think it is the 4 Ps – can't remember the 4th one though!
So if a letter of offer contains the names, address, price etc of the property then this could be enough to be the contract.
But, there are also legislative requirements that certain searches be provided prior to the contract being entered into – but if these were provided separately they could still form part of the contract in the form of the letter.It is unlikely that a vendor would try holding someone to ransom over this but it is possible.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
That is a fair point Terry. Your a bit of a walking encyclopedia, you know your stuff
Thanks for that Terryw,
I want to put this offer cancelation in writing. Would this be sufficient?
Letter of Offer Withdrawal (Confidential not to be disclosed)
Property Details:
Agency:
Purchasers Name:
Phone:Please be advised that I wish to withdraw my offer immediately as of the (date).
Signed:___________________________
Name:
Date:that would probably be ok. fax and email – scan with signature if posisble
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks again Terryw.
be careful to retain proof of fax / postage or email
if it does go further and they say "what letter ? you never sent us one" .. you have to be able to prove you did otherwise they have a hard copy of an offer vs your word.Indeed Pat!
Why not ask them to please acknowledge receipt of this email etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Pat007 & Terryw,
Valid points. Thanks guys
Just out of interest, if the vendor wanted to get out of the contract and had already signed, what issues would the buyer, not have fulfilled, for the contract to be voided?
The vendor may have a change of mind after accepting, but there would be a binding contract – but they still may be able to get out if the vendor had not paid the deposit, for example, by the required date.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry 4 corners of a contract when I did legal studies – 2 parties, agreement, consideration, and the item.
If a vendor has signed a contract – I dont think he can withdraw and as far as I know – he does not have to sign within 3 days. You get 3 days cooling off but that starts the moment the buyer signs the contract. The vendor can still sign 5 days later and your cooling off has ended – that was my experience as a real estate agent. You need to put clauses in the contract – the offer – to be signed within 2 days or 3 days so that it has an end date.
I always thought it was one sided that a vendor could not take a higher offer.
Ian Reid had a contract that allowed the vendor to take a higher offer if one came along after the contract had been signed. I am not sure if the still do that – and there was uproar among real estate agents that they could do this.
But a contract is a contract is a contract in my view. The vendor should be allowed to get out of the contract as much as the buyer is allowed to.
If the vendor has signed and you want to get out of it- you could end the contract my mutual agreement – if you both want out.
if you have not been informed the vendor has signed or not – then write to the agent straight away and YES have evidence you sent that withdrawal.
Terry – vendors dont pay a deposit. If you are thinking that it may be void of the “Buyer” has not paid a deposit – this is not correct either- if you signed and did not pay a deposit then you are still liable for costs if the vendor decides he wants to go ahead and you dont. The deposit is “hurt” money- the vendor can access if you dont go ahead. If there is no deposit – then it is harder to get that money.
There was a case locally where the buyer did not pay a deposit- the agents got into a bit of trouble – not much and the case went on for a while – the vendor I dont think got anything because the buyer did not have money. But if you have something to lose – like your own house – you can be sued.Hi WIPM
Sorry, I mean buyer doesn't pay the deposit.
Off the top of my head I am not sure what happens, but think, in NSW standard contracts, that the vendor can terminate the contract if the deposit has not been paid in days after signing.
Don't forget each state has different standard contracts, and these contracts don't have to be used, but usually are and they are often modified by deleting, amending and adding clauses.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
A contract is a contract is a contract- the 4 corners of the contract stand and that will be according to contract law. Yes, it may well work differently because different “standard” contracts are used.
The way Real Estate is handled in each state will be different.
I know things are different in NSW- the process is different- and with the possibility of being “gazumped” – that is harder to happen here in Victoria.
It is a good thing in my view the way NSW works – except for the “gazumping”. — a vendor cannot get out of a contract once signed by the buyer and himself – in agreement that is… unless as I said – he had an “Ian Reid” type contract. Where other agents have questioned the legitimacy of such contracts… again .. a contract is a contract is a contract……
And as I said – I think it is fair enough that a vendor should not be locked into a sale if the buyer is not- that is here – the vendor has to wait until the finance clause and the building inspection clause ends or is fulfilled before the vendor is clear there is going to be a sale – the buyer can pull out – no questions asked but the vendor could have accepted other possibly higher offers.
I think it should swing both ways…………….Thanks for your replies to my question.
I had a lady approach me to buy her house.
She had listed it with an agent a week earlier but called me any way. We signed an agreement, including a price etc. It was a vendor finance arrangement where she would net around $10-$15K. She wouldn't pay agents fees.
2 days later she rings and says, sorry my agent has sold the house. I congratulate her and wish her all the best.
2 days later she rings again, this time in tears and says she thinks she has made a big mistake selling. The price she agreed on, less agents and legal fees left her with $1000 to her name, no where to live and she was unemployed.
She can't prove anything but on reflection she thinks the agent stitched her up. The conveyancer (arranged by the agent) acting on her behalf, she never met until after she signed the contract. She was told by the agent the buyer put down a $700 holding deposit.
At that stage she wanted to back out (realising her mistake on sale price) and then the conveyancer started to get real friendly with her. She felt more so than just professionally. and the agent was saying everything will be fine "you will walk away with a $1000!.
Then the buyer asks for a 2 week extension. Now as the vendor is not the sharpest tool in the shed i'm struggling to understand what the buyer wanted an extension on? I think it was paying the balance of the deposit.
The vendor feels that the conveyancer and agent are working against her in order to secure their fees. I suggested she ask for proof that the buyer has paid the full deposit, but really what right has she got as the vendor, to see the 10% deposit has actually been paid? they could just say" yeah we got it in the bank"
The vendor tells me a friend of hers she found out had used the same agency and was very unhappy with the way they conducted themselves, so i don't think the vendor is without some justification in her feelings
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