Page 34 - Real estate: a guide for buyers and sellers
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Real estate: A guide for buyers and sellers
Making an offer Negotiation
If you want to make an offer to buy If the seller does not accept your offer,
a property, do so through the agent the agent may come back to you for
managing the sale, who will then another offer.
communicate it to the seller. Verbal offers
are not legally binding until confirmed in a Through a process of negotiation the
contract of sale signed by both parties. agent will attempt to achieve a mutually
acceptable price. This negotiation may
The agent may require you to pay a involve verbal offers, but will only be
deposit, which will be returned if the offer legally binding when in writing. Often
is not accepted. The deposit must be paid more than one person is making an offer
into the agent’s trust account. and the agent will negotiate between
parties to get the highest possible price.
If an agent is not managing the sale, you
negotiate directly with the seller and the If you are making a written offer on the
deposit is paid to the seller. However, a contract of sale, check that items of the
seller may employ a legal practitioner property or goods (moveable personal
or conveyancer to deal with the sale property such as a dishwasher), agreed to
documentation. If this is so, the deposit as part of the purchase, are listed on the
may be paid to the lawyer or conveyancer contract.
and held in their trust account.
There is space in the contract to write the
An offer becomes binding when both agreed goods that may be included in the
parties sign the contract of sale and all sale. If you do not ensure specific goods
conditions are met. Don’t sign before are agreed to on the contract of sale, it
carefully reading and understanding may be difficult to argue ownership of
the document. those goods at settlement.
Conditional offers Contract of sale
In a private sale, you can negotiate with Buyers generally sign a contract of sale
the seller to make the sale subject to when making an offer. The contract
certain conditions such as finance, the contains details of the property, names
sale of another property or a satisfactory of the seller and buyer, seller’s agent,
building inspection. price, the deposit paid, balance owing at
settlement and any special conditions such
If the contract is subject to finance, always as a ‘subject to finance’ clause. An agent
nominate a lender in the relevant section or agent’s representative can complete the
of the contract. details on a contract in preparation for the
buyer and seller to sign.
An auction contract of sale
is unconditional.
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