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What is an Offer?

An offer to purchase a residential property made by a buyer is called an ‘Offer and Acceptance’ contract.  It must be in writing and only becomes legally binding once it has been fully executed by all parties (the Seller and the Buyer).  The contract may include:

  • The name and address of the Buyers(s)
  • A Deposit – payable by the Buyer upon Acceptance and held in Trust
  • A Purchase Price
  • Settlement Date – the date on which the property transfers from Seller to Buyer and the balance of the Purchase Price is paid in full
  • Finance Clause – if the Offer is subject to Finance Approval from a Lender of the Buyers choice
  • Special Conditions – Termite Inspection / Structural Inspection / Sellers Warranty

Negotiating a Price

Once you have received an Offer on your property, your Sales Representative will make recommendations to you.  At this stage, you have three options:

  1. Accept the Offer
  2. Make a ‘counter offer’ to the Buyer
  3. Reject the Offer

Whatever your decision, this must be in writing and communicated to the Buyer.

What are the standard conditions of an Offer?

Some of the more common conditions and Special Conditions on an Offer include (but are not limited to):

  • Subject to Finance – whereby the Buyer makes an application for Finance from a nominated Lender within a specified time frame
  • Subject to a Structural Inspection – to ascertain whether the property has any ‘structural defects’ (at the buyer’s expense)
  • Subject to a Termite Inspection – to ascertain whether the property is free from termite activity (at the buyer’s expense)