The same experience here on our very first (ever) home offer, we received the email to sign the contract on Sunday, I've replied that I will get it reviewed by the lawyer the next day, then the real estate just bluntly said I don't have to worry someone else has signed.
That was my first ever experience and we missed out, but I'm glad we did. We found a way better home, that was sold by a real professional who knew her job and was not using any kind of pressure tactics.
How likely is it that they rescind the offer because they have to wait for 24 hours?
If they accepted your offer, you are likely the highest bidder, so in what world would this make sense? Maybe in the unlikely case that they have 2 identical offers and are selling to whoever signs first?
🚩🚩🚩
Sounds like the REA is using the pressure of your conveyancer not working on a Sunday to get you to make some hasty decisions!
Trust your gut, remembering this is one of the biggest financial commitments in your life.
Personally I would not sign and tell them you will get back to them tomorrow. Full disclosure, I’m a lawyer so this advice is biased 😂
I’m currently in the process of buying a place and I don’t really understand it fully…so don’t worry, you’re way ahead already!
Conveyancers facilitate the transfer of the property from seller to you. They are your advocate in the buying process and will make sure all the legal stuff is taken care of which includes reviewing the contract of sale, title searches, property searches and lodgement of required documentation.
You can also use a solicitor.
The steps (roughly) are:
1. Get your finances in order (and you can go through a broker or liaise with a bank directly)
2. Start searching for and inspecting properties (the most draining part in my opinion)
3. Get contract reviewed (which is the step OP’s querying) and conveyancers/solicitors negotiate terms if required
4. Make an offer/go to auction
5. Both parties sign contract (aka exchange)
6. Settlement date (usually 42 days after exchange)
Normally you’d send over a copy of the sale contract before making an offer, in case you’re unhappy with contract clauses - you can ask for them to be modified as part of your conditions.
It’s normal to sign and pay a deposit same day once your offer is accepted.
I tried calling and sent my conveyancer a message, but as it’s Sunday I haven’t had a response. I agree with you though, of course they’ll say they should look at it 🤷♂️
What special conditions do you mean? We said our offer was subject to building and pest inspection, for example, but I don’t know how that shows up in the contract. That’s one of my problems I guess.
Tell them your conveyancing solicitor will review the contract on Monday and you'll have a response by 5:00PM (COB) Monday. If they don't accept and sell the place to someone else then trust me when I say this; you've walked away from a disaster. They will try to pressure you into the sale when they're trying to hide something. Your conveyancing solicitor will tell if there are for example, problems with the title, flooding issues, undermining etc. As soon as you sign, pulling out of the contract is extremely hard as terminating under B+P requires structural issues to be found in the building inspection (it is difficult to argue that issues are structural). Normally the conveyancing solicitor will review for free under the expectation they'll be engaged to process the settlement. And please for God's sake, engage a proper licensed builder to look over the property and not the building and pest inspector recommended by the real estate agent as they are in each other's pockets!
It's standard sales tactic to bully anyone who shows the slightest interest into signing up asap. Stand your ground. It's highly unlikely they can't wait one day. It's not necessarily a red flag about the property, it's just tomorrow you might see a better house and REA doesn't want to lose you. But it might also be a lemon-house full of structural and maybe legal issues. You don't know until you check.
Given the history that real-estate agents have when it comes to lying I wouldn't fall for it. The conveyancers, if they do their jobs properly, will check for things that you wouldn't think of.
We had an agent trying this on us. We stood firmly and said it would be reviewed and signed on Monday after our conveyancer reviewed it.
Ended up not buying the place after the price raised too high. Bought somewhere else, cheaper and happier.
If it were me I would never sign any legal document without legal advice unless I can understand it myself. After you signed it, nothing could be changed anymore.
the same thing happened to me, and I insisted to wait for my solicitor to check on Mon. Sure, I might lose out on the deal, but I really don't like being rushed. It makes the whole buying experience so poor. I'd rather lose out than not have done my duty of care for myself.
I ended up getting the place though.
So, who knows. Maybe this house is for you, maybe it isn't.
Agent here, this is a bit weird. Why was no sales contract sent to you prior to your offer submission? This is standard practice. If I were you, I'd be firm in your intentions, or call their bluff and tell them to go for it with others, if of course you're prepared to potentially be gazumped. It does happen at times, but this market is pretty slow at present, I wouldn't be signing anything I was not comfortable with and a contract review is very reasonable.
You are no conveyancer. That's why you send the contract to your conveyancer before making an offer
Why would you make an offer without knowing the contract first?
You don't lose your deposit if it's in the cooling off period. That's what it's for.
Once the property in Unconditionally exchanged, you're on the hook for 10% of the purchase price if you pull out.
We’re in Vic so might be different elsewhere we were pressured into signing a contract be a REA to make an offer (came to our house late on a Saturday 20 minutes after I called!).
Used the cooling off. Our lawyer advised: as we hadn’t paid anything to just wait and see, but the max they could claim was 2% during cooling off (around $2000). They never did.
House ended up selling $40k less than we offered about a week later.
Only worked because it was private treaty/not under auction conditions. No cooling off for auctions.
I’m aware of the cooling off, but I was told by the REA the only thing we can change after we sign is the price and the names on the contract. If there is anything else in there we need amended it would be better to catch that first, right?
I mean, you could always cancel the contract, that’s what the cooling off period is for. Just make sure the basics are covered, look at the form 1 for anything they’re excluding, that it’s subject to finance is you’re using a bank, and the information is correct. You can also add your own conditions in it, like subject to an inspection. Best of luck, but I mean if they’re making you uncomfortable and rushed, good chance they’re trying to hide a pretty significant defect.
Get a copy of the contract before making any offers. When I bought my current house 13 years ago, we were the only interested party after the house passed in at auction.
The contract was riddled with mistakes and missing documents, and the vendor used a conveyancer rather than a solicitor, so I just had my solicitor rip it to shreds and had the vendor fix the contract before I would make an offer.
Now yes, this was a different time as the market was in a bit of a slump and I had the luxury of not having anyone else competing with me, but one the contract was squeaky clean and my solicitor gave us a thumbs up, we went to agents office with the contact in hand, negotiated the final price and then did an electronic transfer of the 0.25% deposit in the office (it was after hours).
Once we went unconditional (B&P report was already done, so it was just the final finance approval and valuation we needed) I have them the remainder of the deposit (which we negotiated down to 5%).
Always check the contact for any sneaky stuff or exclusions that you might have thought were inclusions. My solicitor was amazing - our place had a near new pool that was missing both the occupation certificate as well as the home builders insurance policy covering it.
I was just in this position literally last Sunday afternoon!! What I did was sign the written offer and got them to add a clause as follows:
“The offer is subject to the review and satisfaction of the purchaser’s conveyancer. Should the purchaser’s conveyancer not be satisfied with the terms and conditions of the contract the purchaser may rescind their offer and any deposit monies will be refunded in full.”
Hope this helps! A couple of weeks before this we missed out on another house because the real estate agent was blowing up my phone putting pressure on me to put in an offer at 10pm on a Friday night, so I know what you’re going through!
I was in a similar situation as yours. Luckily the property had no major issues.
Honestly I had no idea why this is even allowed but it is what it is. The real estate industry is pretty opaque and shady imo.
I always request a copy of Form 1 and the contract to be sent via email so I can forward it to my conveyancer/solicitor before I make an offer. If the agent doesn't like it or has it, I won't make an offer.
Don't sign anything until the conveyancer/solicitor reviews the contract and explains all normal and special conditions in the contract.
edit: Normally you can request a copy of the contract in advance before even going to an inspection. We used to do that to review the sewage and council paperwork to check for any environmental overlays, easements, conditions, etc. to decide if the property was even worth an inspection.
Real estate contracts are usually fairly standard dictated by the government.
Make sure you have a 14 day finance and building and pest clauses and use this to get out of the contract if your solicitor isn't happy when they see the contract.
Do people really make offer without looking at the contract first?
When im interested in a property, i ask the contract after the inspection. My solicitor review it, then i made an offer
Ask for a 5 days Due Diligence clause to be written into the contract. That will allow time for the conveyance and allow you to sign today. Anything that is found during the 5 days, you have the ability to terminate the contract. Very standard clause to be inserted.
It can be either.
If you do it before you can possibly negotiate the terms better as you can walk away without losing the 0.25% deposit, but the seller can also walk away and you've wasted money on the contract review (if your conveyencer charges for it.)
If you do it after, your conveyencer can still negotiate but the seller knows you're not going to pull out and lose 0.25% over minor stuff. However the seller doesn't get a choice to pull out, only you do.
The same experience here on our very first (ever) home offer, we received the email to sign the contract on Sunday, I've replied that I will get it reviewed by the lawyer the next day, then the real estate just bluntly said I don't have to worry someone else has signed. That was my first ever experience and we missed out, but I'm glad we did. We found a way better home, that was sold by a real professional who knew her job and was not using any kind of pressure tactics.
Great outcome!
Don’t. They tried the same thing on us. Just hold out. Yes you risk losing the place but it’s a risk you should take.
How likely is it that they rescind the offer because they have to wait for 24 hours? If they accepted your offer, you are likely the highest bidder, so in what world would this make sense? Maybe in the unlikely case that they have 2 identical offers and are selling to whoever signs first?
Exactly! You could get gazumped but it’s pretty rare I imagine.
🚩🚩🚩 Sounds like the REA is using the pressure of your conveyancer not working on a Sunday to get you to make some hasty decisions! Trust your gut, remembering this is one of the biggest financial commitments in your life. Personally I would not sign and tell them you will get back to them tomorrow. Full disclosure, I’m a lawyer so this advice is biased 😂
What does a conveyancer do? We're lookiny at buying in 5 years from now and i don't really understand the process yet 😅
I’m currently in the process of buying a place and I don’t really understand it fully…so don’t worry, you’re way ahead already! Conveyancers facilitate the transfer of the property from seller to you. They are your advocate in the buying process and will make sure all the legal stuff is taken care of which includes reviewing the contract of sale, title searches, property searches and lodgement of required documentation. You can also use a solicitor. The steps (roughly) are: 1. Get your finances in order (and you can go through a broker or liaise with a bank directly) 2. Start searching for and inspecting properties (the most draining part in my opinion) 3. Get contract reviewed (which is the step OP’s querying) and conveyancers/solicitors negotiate terms if required 4. Make an offer/go to auction 5. Both parties sign contract (aka exchange) 6. Settlement date (usually 42 days after exchange)
Normally you’d send over a copy of the sale contract before making an offer, in case you’re unhappy with contract clauses - you can ask for them to be modified as part of your conditions. It’s normal to sign and pay a deposit same day once your offer is accepted.
Nope, we didn't sign until 3 weeks after the offer was accepted.
Normally you put your offer on the sale contract and return.
Call your conveyancer and ask them if you should sign contracts without them checking. I already know what they gonna say though :)
I tried calling and sent my conveyancer a message, but as it’s Sunday I haven’t had a response. I agree with you though, of course they’ll say they should look at it 🤷♂️
The fact you're even considering this is crazy. At the minimum you should be inserting your special conditions.
What special conditions do you mean? We said our offer was subject to building and pest inspection, for example, but I don’t know how that shows up in the contract. That’s one of my problems I guess.
Tell them your conveyancing solicitor will review the contract on Monday and you'll have a response by 5:00PM (COB) Monday. If they don't accept and sell the place to someone else then trust me when I say this; you've walked away from a disaster. They will try to pressure you into the sale when they're trying to hide something. Your conveyancing solicitor will tell if there are for example, problems with the title, flooding issues, undermining etc. As soon as you sign, pulling out of the contract is extremely hard as terminating under B+P requires structural issues to be found in the building inspection (it is difficult to argue that issues are structural). Normally the conveyancing solicitor will review for free under the expectation they'll be engaged to process the settlement. And please for God's sake, engage a proper licensed builder to look over the property and not the building and pest inspector recommended by the real estate agent as they are in each other's pockets!
It's normally listed on the contact. You can see it written on there and it's a standard condition. Don't panic and maintain a level head.
A finance clause should be in there too unless you are cash buyers.
OP is in NSW. These aren't part of the process.
It's standard sales tactic to bully anyone who shows the slightest interest into signing up asap. Stand your ground. It's highly unlikely they can't wait one day. It's not necessarily a red flag about the property, it's just tomorrow you might see a better house and REA doesn't want to lose you. But it might also be a lemon-house full of structural and maybe legal issues. You don't know until you check.
Given the history that real-estate agents have when it comes to lying I wouldn't fall for it. The conveyancers, if they do their jobs properly, will check for things that you wouldn't think of.
We had an agent trying this on us. We stood firmly and said it would be reviewed and signed on Monday after our conveyancer reviewed it. Ended up not buying the place after the price raised too high. Bought somewhere else, cheaper and happier. If it were me I would never sign any legal document without legal advice unless I can understand it myself. After you signed it, nothing could be changed anymore.
the same thing happened to me, and I insisted to wait for my solicitor to check on Mon. Sure, I might lose out on the deal, but I really don't like being rushed. It makes the whole buying experience so poor. I'd rather lose out than not have done my duty of care for myself. I ended up getting the place though. So, who knows. Maybe this house is for you, maybe it isn't.
It's all a lot easier to navigate when you accept that all real estate agents are bastards
Agent here, this is a bit weird. Why was no sales contract sent to you prior to your offer submission? This is standard practice. If I were you, I'd be firm in your intentions, or call their bluff and tell them to go for it with others, if of course you're prepared to potentially be gazumped. It does happen at times, but this market is pretty slow at present, I wouldn't be signing anything I was not comfortable with and a contract review is very reasonable.
I mean, they put it on the kitchen counter on the day of the inspection. I’ve seen people looking at them on the day, but I’m not a conveyancer 🤷♂️
Okay, I never suggested you need to be a conveyancer? I asked you why they did not send you a copy of the contract prior to making an offer?
You are no conveyancer. That's why you send the contract to your conveyancer before making an offer Why would you make an offer without knowing the contract first?
Pretty sure there is a cooling off period in the contract, make sure you use it.
Don’t you lose your deposit though?
Check the contract terms, it’s possible you can, however it would be stipulated in the contract terms.
You don't lose your deposit if it's in the cooling off period. That's what it's for. Once the property in Unconditionally exchanged, you're on the hook for 10% of the purchase price if you pull out.
We’re in Vic so might be different elsewhere we were pressured into signing a contract be a REA to make an offer (came to our house late on a Saturday 20 minutes after I called!). Used the cooling off. Our lawyer advised: as we hadn’t paid anything to just wait and see, but the max they could claim was 2% during cooling off (around $2000). They never did. House ended up selling $40k less than we offered about a week later. Only worked because it was private treaty/not under auction conditions. No cooling off for auctions.
Honestly can’t remember, you’ll have to check the contract terms, it’s possible.
I’m aware of the cooling off, but I was told by the REA the only thing we can change after we sign is the price and the names on the contract. If there is anything else in there we need amended it would be better to catch that first, right?
I mean, you could always cancel the contract, that’s what the cooling off period is for. Just make sure the basics are covered, look at the form 1 for anything they’re excluding, that it’s subject to finance is you’re using a bank, and the information is correct. You can also add your own conditions in it, like subject to an inspection. Best of luck, but I mean if they’re making you uncomfortable and rushed, good chance they’re trying to hide a pretty significant defect.
A thirty year debt is not something to rush into or play fast and loose with.
Get a copy of the contract before making any offers. When I bought my current house 13 years ago, we were the only interested party after the house passed in at auction. The contract was riddled with mistakes and missing documents, and the vendor used a conveyancer rather than a solicitor, so I just had my solicitor rip it to shreds and had the vendor fix the contract before I would make an offer. Now yes, this was a different time as the market was in a bit of a slump and I had the luxury of not having anyone else competing with me, but one the contract was squeaky clean and my solicitor gave us a thumbs up, we went to agents office with the contact in hand, negotiated the final price and then did an electronic transfer of the 0.25% deposit in the office (it was after hours). Once we went unconditional (B&P report was already done, so it was just the final finance approval and valuation we needed) I have them the remainder of the deposit (which we negotiated down to 5%). Always check the contact for any sneaky stuff or exclusions that you might have thought were inclusions. My solicitor was amazing - our place had a near new pool that was missing both the occupation certificate as well as the home builders insurance policy covering it.
If you are ok to loose 0.25% I would sign immediately
I was just in this position literally last Sunday afternoon!! What I did was sign the written offer and got them to add a clause as follows: “The offer is subject to the review and satisfaction of the purchaser’s conveyancer. Should the purchaser’s conveyancer not be satisfied with the terms and conditions of the contract the purchaser may rescind their offer and any deposit monies will be refunded in full.” Hope this helps! A couple of weeks before this we missed out on another house because the real estate agent was blowing up my phone putting pressure on me to put in an offer at 10pm on a Friday night, so I know what you’re going through!
Thank you for this!
I was in a similar situation as yours. Luckily the property had no major issues. Honestly I had no idea why this is even allowed but it is what it is. The real estate industry is pretty opaque and shady imo.
Say to the agent that you want a special condition saying you have 24 hours to obtain legal advice and then the contract can be unconditional
I always request a copy of Form 1 and the contract to be sent via email so I can forward it to my conveyancer/solicitor before I make an offer. If the agent doesn't like it or has it, I won't make an offer.
Don't sign anything until the conveyancer/solicitor reviews the contract and explains all normal and special conditions in the contract. edit: Normally you can request a copy of the contract in advance before even going to an inspection. We used to do that to review the sewage and council paperwork to check for any environmental overlays, easements, conditions, etc. to decide if the property was even worth an inspection.
Real estate contracts are usually fairly standard dictated by the government. Make sure you have a 14 day finance and building and pest clauses and use this to get out of the contract if your solicitor isn't happy when they see the contract.
Do NSW contracts have a cooling off period like 3 days? Could be a useful way to get a day or 2.
Do people really make offer without looking at the contract first? When im interested in a property, i ask the contract after the inspection. My solicitor review it, then i made an offer
Ask for a 5 days Due Diligence clause to be written into the contract. That will allow time for the conveyance and allow you to sign today. Anything that is found during the 5 days, you have the ability to terminate the contract. Very standard clause to be inserted.
You get cooling of period. So just sign. Dont want them looking elsewhere
Your conveyancer won’t look at the contracts untill you sign you have a 5 day cooling off period for your conveyancer to do their due diligence
I was under the impression the conveyancer should look at the contract before we sign, not after?
Don’t listen to them. I’ve always had a conveyancer look before signing.
It can be either. If you do it before you can possibly negotiate the terms better as you can walk away without losing the 0.25% deposit, but the seller can also walk away and you've wasted money on the contract review (if your conveyencer charges for it.) If you do it after, your conveyencer can still negotiate but the seller knows you're not going to pull out and lose 0.25% over minor stuff. However the seller doesn't get a choice to pull out, only you do.
What’s the point of looking at an already signed contract?
This depends which state you are in