Buying a House: 72 Hour Clause and Competing Offer?

[b9057215]

I'm in the process of signing a competing offer on a house that's already under an offer, which is subject to sale.
My offer would only be subject to bond (already pre-approved).

The tricky part is: in order for the seller to give the first buyer 72h notice, i'd have to register a bond and pay the fees on that.
considering there is no guarantee that the first buyer won't make their offer unconditional, what's the best course of action here?
and what happens in the case where the fees are paid and the bond is registered, but the offer is not accepted? are the fees typically refunded?

The estate agent is LeadHome if that matters.

Thanks in advance!

 

[Steamy Tom]

just sign the offer if you want it, in reality the first buyer would likely just wave away his right since he is probably subject to a sale from the sounds of it. while there are technicalities like you mention in the real world unless people really want to be difficult it doesnt play out exactly the same.

 

[b9057215]

just sign the offer if you want it, in reality the first buyer would likely just wave away his right since he is probably subject to a sale from the sounds of it. while there are technicalities like you mention in the real world unless people really want to be difficult it doesnt play out exactly the same.

Far too paranoid to sign it as-is.
to put it in perspective the bond registration fees are around 50k

 

[Steamy Tom]

Far too paranoid to sign it as-is.
to put it in perspective the bond registration fees are around 50k

that isn't going to happen in 3 days.

 

[Alton Turner Blackwood]

Far too paranoid to sign it as-is.
to put it in perspective the bond registration fees are around 50k

What am I missing here? A bond is only registered once the property is transferred to the buyer. Your house is security, why would a bank give you money and you don't have a house yet? Your logic makes no sense at all.

 

[ScottulusMaximus]

in order for the seller to give the first buyer 72h notice, i'd have to register a bond and pay the fees on that.

No you won't.

Put your offer in and calm down, you're not going to be liable for bond fees if the seller accepts another offer.

You only start the bond process AFTER an OTP is accepted by BOTH parties.

 

[Steamy Tom]

What am I missing here? A bond is only registered once the property is transferred to the buyer. Your house is security, why would a bank give you money and you don't have a house yet? Your logic makes no sense at all.

I think he just doesnt know the process, the estate agent must be a real knob.

The offer needs to be accepted to continue the process, you can't get the bond etc without it actually being accepted.

You sign this offer, the agent then has to tell the 1st buyer that you have signed the offer etc and he has 72 hours to drop his supensive conditions (basically he has 72 hours to ensure the deal will go through without delay), which unless he has a buyer lined up and bond approval etc it isnt going to happen.

During this time you should start your bond paper work, but by the time the 72 hours is up you will probably just have an answer on your bond if not still waiting. You do not pay anything until much later, and until you sign the bond paper work you wont pay a cent. (not the application paper work, the bond registration paper work)

Chances are that after the agent speaks to the first buyer he will tell he is withdrawing, otherwise they will just wait the 72 hours and let it go.

 

[Kosmik]

Bonds are normally deemed accepted with a letter of acceptance by a bank on the offer, no need to pay the fees yet,

 

[Alton Turner Blackwood]

I think he just doesnt know the process, the estate agent must be a real knob.

The offer needs to be accepted to continue the process, you can't get the bond etc without it actually being accepted.

You sign this offer, the agent then has to tell the 1st buyer that you have signed the offer etc and he has 72 hours to drop his supensive conditions (basically he has 72 hours to ensure the deal will go through without delay), which unless he has a buyer lined up and bond approval etc it isnt going to happen.

During this time you should start your bond paper work, but by the time the 72 hours is up you will probably just have an answer on your bond if not still waiting. You do not pay anything until much later, and until you sign the bond paper work you wont pay a cent. (not the application paper work, the bond registration paper work)

Chances are that after the agent speaks to the first buyer he will tell he is withdrawing, otherwise they will just wait the 72 hours and let it go.

Its funny that you mention this. Last year we were interested in a house and found out there was an offer pending, thinking exactly like you do, we signed the OTP the thursday and paid the deposit, thereby placing the first buyer on the 72hr terms.

The Monday the fsckers sent us a mail that their house has successfully been sold

So yes, it does happen.

 

[Steamy Tom]

Its funny that you mention this. Last year we were interested in a house and found out there was an offer pending, thinking exactly like you do, we signed the OTP the thursday and paid the deposit, thereby placing the first buyer on the 72hr terms.

The Monday the fsckers sent us a mail that their house has successfully been sold

So yes, it does happen.

yeah it for sure can but the likelihood is very slim. the longer OP delays the higher the likelihood

 

[barkhausen]

Walk away from the deal.You are going to save yourself a lot of heartache.
Most homes are over valued by 25 %.So it is a buyers market and not sellers market.Dont be in a hurry.
Look for a deal with no baggage .

 

[Steamy Tom]

Walk away from the deal.You are going to save yourself a lot of heartache.
Most homes are over valued by 25 %.So it is a buyers market and not sellers market.Dont be in a hurry.
Look for a deal with no baggage .

what?

 

[b9057215]

Thanks everyone for the advice. I think the root of the matter is the wording of the contract. I'm not sure how you can pay transfer/bond fees before they give the other purchaser notice. This contract makes absolutely no sense!

22.3 The Purchaser/s herein acknowledge and accept that the aforesaid notice may not be given to the purchaser/s in the initial offer until such time as:

22.3.1 all suspensive conditions herein contained are fulfilled; and

22.3.2 if any portion of the purchase price is payable in cash, such cash has been paid in full to the Seller’s Conveyancing Attorney or guarantees have been delivered to the satisfaction of the Seller; and

22.3.3 the Conveyancing Attorneys have confirmed that all transfer and bond registration costs have been paid in full by the Purchaser.

 

[ToxicBunny]

Scratch those conditions that you aren't happy with out and initial them...

If they won't accept that, then walk away from the deal.

 

[X-Gamer]

Its funny that you mention this. Last year we were interested in a house and found out there was an offer pending, thinking exactly like you do, we signed the OTP the thursday and paid the deposit, thereby placing the first buyer on the 72hr terms.

The Monday the fsckers sent us a mail that their house has successfully been sold

So yes, it does happen.

Soooo, how much of a hassle was it to get your deposit back?

 

[Steamy Tom]

Soooo, how much of a hassle was it to get your deposit back?

It should never be a hassle because the money gets paid to the lawyers, not to the homeowner

 

[biometrics]

And this is why I always insist on scrapping the 72 hour clause. Don't want other offers screwing with my deal.

 

[Alton Turner Blackwood]

Soooo, how much of a hassle was it to get your deposit back?

Quite a bit because I then had to prove that I was me. Annoying as hell since I had to send the attorney FICA docs and crap

 

[X-Gamer]

Quite a bit because I then had to prove that I was me. Annoying as hell since I had to send the attorney FICA docs and crap

Eish, that's unfortunate. But it sounds like it worked out.

 

[Steamy Tom]

Quite a bit because I then had to prove that I was me. Annoying as hell since I had to send the attorney FICA docs and crap

Would have been more annoying if they had paid someone else