Browse Forums Real Estate 1 Jan 29, 2013 7:06 pm Hi, I am a newbie to this forum and to property full stop. I had an unusal experience with a agent today. Found a house and wanted to make an offer. However the agent insisted that I sign the contract and I put my offer price on it when he sends it to me, i then scan it back to him with our 0.25% and then he will then present offer to the vendor. I have no problem with signing as we will still utilise the 5 day cooling off period. His theory was that he wants them to see we are genuine. The house does tick all the boxes for us, and is in a high turnover area, he has also had alot of interest since it was list, a few days ago. I can sort of see his logic, just found it a bit unusual. Has anyone else experienced this before? Re: Real Estate Agent - Unusual Experenice or Normal? 2Jan 29, 2013 7:11 pm You handed money over on an offer? Re: Real Estate Agent - Unusual Experenice or Normal? 3Jan 29, 2013 7:15 pm I've heard of it being done. Can't say it's a process I'd like to take part in. Be very careful and ensure you have their written policy of what they do with your money, conditions of getting it back etc etc and definitely a receipt for it. 2 Re: Real Estate Agent - Unusual Experenice or Normal? 5Jan 29, 2013 7:33 pm Thanks, I will only handover 0.25%, as listed in NSW Fiar trading guidelines, i lose this if I pull out during five day cool off, or he refunds if he takes better offer. Seems he just wanted contract to present to vendor to demonstrate genuine offer, I guess. All a bit strange, but not too much risk as solicitor will review during 5 day cooling off. Re: Real Estate Agent - Unusual Experenice or Normal? 6Jan 29, 2013 7:48 pm aza Thanks, I will only handover 0.25%, as listed in NSW Fiar trading guidelines, i lose this if I pull out during five day cool off, or he refunds if he takes better offer. Seems he just wanted contract to present to vendor to demonstrate genuine offer, I guess. All a bit strange, but not too much risk as solicitor will review during 5 day cooling off. A contract to the vendor is a serious offer... I would not be handing over any money.. Re: Real Estate Agent - Unusual Experenice or Normal? 7Jan 30, 2013 9:35 pm I've heard of it happening. But how long can they hold the contract before the vendor signs it? Could they just hold it and wait to see if they get a better offer? In other words you could risk throwing the money away if you get sick of waiting and go elsewhere. I'd speak to a solicitor to see about timeframes. benblinkau they won't let you sign a contract without the .25%. Re: Real Estate Agent - Unusual Experenice or Normal? 8Jan 30, 2013 10:18 pm Maybe if the offer is accepted, but i wouldnt be handing any money over to the agent until the offer is accepted... Maybe things are done differently in NSW... I have never done that in SA. Re: Real Estate Agent - Unusual Experenice or Normal? 9Jan 30, 2013 10:19 pm We are talking .25% to make an offer... Not once a contract is signed... Ridiculous Re: Real Estate Agent - Unusual Experenice or Normal? 10Jan 30, 2013 10:23 pm I don't know much about real estate, but what if he wants you to hand over the money because he knows something will come up in the inspections you won't like. It will make it a little harder to walk away. Or have you already done pest/building inspections? I agree I'd speak to your solicitor first. Re: Real Estate Agent - Unusual Experenice or Normal? 11Jan 30, 2013 10:43 pm No way, I wouldn't be doing it. A written offer should suffice and your agent should be "qualifying" all their buyers and they generally know who are time wasters and who is for real. I don't know what his motivation is for doing this but it doesnt add Up to me. Sometimes a written offer and a holding deposit of usually 1k can be held in their trust account. If you do pay it make sure you get a written reciept from their trust account and a copy of the contract. Make sure it clearly states that you have the cooling off period. Re: Real Estate Agent - Unusual Experenice or Normal? 13Jan 31, 2013 3:57 am Oshani No way, I wouldn't be doing it. A written offer should suffice and your agent should be "qualifying" all their buyers and they generally know who are time wasters and who is for real. I don't know what his motivation is for doing this but it doesnt add Up to me. Sometimes a written offer and a holding deposit of usually 1k can be held in their trust account. If you do pay it make sure you get a written reciept from their trust account and a copy of the contract. Make sure it clearly states that you have the cooling off period. Completely agree.. If it sounded fishy enough to be asking questions, you should go with your gut. Re: Real Estate Agent - Unusual Experenice or Normal? 14Jan 31, 2013 6:38 am Another thought. If he's asking you to do it, is he asking others to do the same? It is unorthidox but I have heard of people doing it. Put your offer in writing stating the offer will expire at 5pm in 1-2 days time (you choose). Leave it at that. Legally he has to submit all offers. Good luck. Re: Real Estate Agent - Unusual Experenice or Normal? 15Jan 31, 2013 3:56 pm Umm... lots of scaremongering happening here. Completely normal in my experience. In such a situation, one gives the agent a cheque, the agent does not bank it until the offer is accepted, at which point it forms part of the 10% (or whatever) deposit. It is not required, but an offer accompanied by a cheque is usually looked on more favourably and may tilt a vendor towards one offer over another. Appearances, that's all. If you look at a standard contract (at least here), there is a section about deposits which goes something like 'deposit of _%, ($___), of which $__ has been paid, therefore $__ due by __ date.'. If the offer is rejected, the cheque should be returned to you. If you paid via another method (bank transfer being all that comes to mind), the real estate agent will issue a refund via their normal process, and I would expect them to do it on the spot. It's usually a cheque the buyer writes though, since by the time the bank clears the funds from a bank transfer, the offer is probably already accepted/rejected. And then it is easy for the agent to just hand back the unbanked cheque - less hassle for them because they don't have to record the transactions in their accounting. Any offer should have a time limit. Pre-written contracts normally specify something like 3 days - and it can be crossed out and a specific date or specific length of time entered. If it is not signed by the vendor before the offer expires, then the paperwork would need to be redone. There is no more chance of being force to buy the property in a month if you pay a 'holding deposit' or 'good faith deposit' than otherwise. Land settled May '14. Building the PD Hoffman39: 5/11=site start, 13/11=slab pour, 26/11=frame complete, 10/12=roof on, 12/12=bricking started. Blog: http://jyndeira.net/blog/ Re: Real Estate Agent - Unusual Experenice or Normal? 16Jan 31, 2013 4:49 pm Never heard of it, wouldn't do it. Building the Ascot 35 with Carlisle Homes in Pasadena Estate, Clyde VIC My build thread: viewtopic.php?f=31&t=59776 Re: Real Estate Agent - Unusual Experenice or Normal? 17Jan 31, 2013 7:16 pm How is it scaremongering dragonchild? Aza has asked for opinions and people have given them expressing their concern. I commented as I have worked in real estate and this is something that the offices I worked in never did. I question this agents ethics and would hate to see Aza be burned by someone. We have offered other solutions to the issue, people are being constructive. Re: Real Estate Agent - Unusual Experenice or Normal? 18Jan 31, 2013 7:42 pm I thought it was standard practice. We sold our house last year and the prospective purchasers paid a $500 deposit which they would have got back if we didn't agree on a price. They paid the balance of the deposit once their finance was approved and we were unconditional. We put an offer in on an investment property a number of years ago but they wouldn't agree to our offer and our deposit was returned. Re: Real Estate Agent - Unusual Experenice or Normal? 19Jan 31, 2013 8:25 pm It is scaremongering to suggest that "What if the vendor rejects your offer verbally and then 1 month after that they force you to purchase it?" or "In other words you could risk throwing the money away if you get sick of waiting and go elsewhere." To put down a deposit cheque - a $1000 token, a 'good faith' .25% or a full 10% - with a written offer is hardly an off the wall or 'fishy' thing to ask for, and a record of any money already paid is written into the offer itself so it must be accounted for by the agent should the offer be accepted. Of the four houses I have been involved in selling, two got a .25% cheque with the written offer, one got a full 10% cheque with the written offer and the last was an auction. I put in a cheque for $1000 when I offered for the house I currently own - it wasn't presented as optional although technically it is. Every single one of those transactions was with a different agent, three in Sydney, the rest in Melbourne. It isn't universal, certainly - there were written offers sans cheque in two cases. But for one of the other houses, the agent expected a good faith deposit from a buyer if they were serious and made that clear up front. The sensible advise is indeed to talk to a solicitor - alternately, look up a buyer's agent and query them. Even the rival real estate offices in the vicinity may be a source of information about how common a practice it is in that area. I consider it a normal practice, in answer to the original question. And given that once you have a signed contract the agent normally has custody of the entire 10% deposit until settlement, then if you have doubts about their integrity*, I would say that one should reconsider making any offer, not just whether or not to put down a good faith deposit. * As in, sufficient doubts that you think they wouldn't give you a receipt or refund promptly as required or otherwise inappropriately handle the money. Real estate agent =/= integrity pretty much by definition. Land settled May '14. Building the PD Hoffman39: 5/11=site start, 13/11=slab pour, 26/11=frame complete, 10/12=roof on, 12/12=bricking started. Blog: http://jyndeira.net/blog/ Re: Real Estate Agent - Unusual Experenice or Normal? 20Feb 01, 2013 3:41 am Real estate agents crack me up!!!! They want you to work for nothing in the hope of them getting a sale, yet they want money off a potential buyer to prevent you from wasting their time. Insert expletive here. Side issue but gives you an insite into the mind of an agent. I was approached by an agent to help sell some land (I'm a building designer). I provided potential floor plans and marketing artwork in the hope of securing a sale for him and possibly a design contract for myself. 4 blocks sold, 3 cashless buyers wanting cheap plans???? Result, I'm out of pocket and I have to work for student wages.....as I said, real estate agents crack me up. Just to makea point about this, an approach that some people have found sucessful in negotiating these rises down, Is to provide some workings to the builder, specifying… 4 81835 Before you rip it up, if you can in the grout lines, drill some holes and pour/inject techgrip by sika. I have used it to bond mdf to timber, but in the process it dripped… 1 4370 Not much in this responce. My suggestion is, what are you looking to build and why. This will all be impacted by the local councils planning scheme. Familiarise yourself… 6 5928 |