Making an Offer on a Property
When you have found a property that you would like to buy, you need to make an offer for the vendor (the person selling) to consider.
When you are ready to make an offer, real estate agent can provide you with a copy of the sale contract of the property for you to review. . If there is anything you do no understand, you should discuss the sale contract with a lawyer. You should wait until you have reviewed the title search of the property and the sale contract before making an offer for the vendor to consider.
Do not feel pressured into making an offer, take your time. If it sounds too good to be true, chances are it is.
If the vendor agrees to your offer, you will both sign and exchange copies of the agreement to sale contract. Make sure that the sale contract contains any conditions that may have been agreed between yourself and the vendor. You then pay a deposit.
It is common for the contract to be subject to conditions such as:
- the purchase of the house being subject to approval of finance;
- the time period in which the Sale Deed would be registered;
When signing the contract you should:
- read the contract carefully and completely before signing it;
- understand the contract in its entirety;
- seek advice from your lawyer if there is something you do not understand;
- understand your obligations under the contract such as time frames for completion;
- keep a complete copy of the signed contract and store it in a safe place;
- pay the agreed deposit; and
- get insurance that will cover the property from the time the contract is signed.
After having the offer accepted by the vendor,if conditions that are set out in your contract are not met, the contract can be cancelled and the purchaser is no longer obliged to buy the property. If your conditions are met, for example you obtain the finance required, you are obliged to complete the contract. Failing to complete or failing to attempt to complete the contract can result in forfeit of the deposit.