Want to buy a house?

The excitement is building!  You've found that dream property you've been searching for!  Now comes the scary part: going through the motions of buying the property.  It's even more scary if you're a first home buyer.

Some agents will take an offer verbally.  There are traps in that, both for the buyer and the seller.  A good agent will always insist on a written offer.  Should an offer be taken verbally, there is no legal obligation to make that offer formal. And this is the scary part.  I have seen where a property has been lost to a buyer after a verbal negotiation when a seller reneges and, for a seller, I have seen where a buyer has refused to make their offer formal after agreement has been achieved.  In short, there is protection for both the buyer and the seller for the offer to be written.

What does a written offer mean?  

1. A written offer normally is made, in Queensland, on a Contract of Sale form.  Just because the offer is made on a contract of sale form, it isn't a binding contract until full agreement is reached and all parties have initialled and signed where appropriate.
2. All the terms, such as finance and deposit terms, building & pest conditions, price and settlement or other terms are stipulated in the paperwork.

The agent then is able to take the offer to the seller and begin negotiations.  When an offer is presented to a seller they have 3 options:

1. They can accept the offer and sign and initial where appropriate.  Congratulations!  This is where the sale occurs.
2. The can decide to alter the terms - price or conditions.  This is where the negotiation begins. They make a counter-offer by changing the terms and conditions to what they would prefer and initial the changes and sign and initial the paperwork where required.
3. They can reject the offer outright and not negotiate.  This often happens when an offer in monetary terms is too low.

Remember, the paperwork does not become a legally binding contract until all initials and signatures are on the contract in the right places.  Both buyer and seller retain the right, at all times, to run the paperwork by their lawyer to ensure all the terms and conditions are in their interest.

Marilyn is a licensed real estate agent specialising in residential property in the northern suburbs of Brisbane

You can contact her about this or any other real estate matter on 0407 149 309

or email marilyn.davies@harcourts.com.au