Offer to Purchase validity period

[marco79]

We have signed a sole mandate with an agent to sell our property. He brought us an offer which was valid for 30 days which ended 25 May. There is a clause in the OTP stating if the Purchaser doesn't acquire finance within the OTP validity period, he has an automatic 14 day extension. 6 weeks is a he'll of a long time to wait for an answer from a bank.

Now the agent brought us another offer last night. I haven't signed it yet. Would it be reasonable for me to make the offer valid for 7 days and exclude the extension?

We have decided if we do not sell within the next 2 weeks then we are staying put.

 

[Former member 61586]

Yes. You can make the offer valid for as long as you want. If the other party doesn't like it, they don't sign. Simple as that. And about the "automatic extension", there is no such thing unless it is stipulated in the contract. My offer to purchase contract stated a validity date, and if that date was missed, the contract was null and void with no further communication needed between parties.

 

[Archer]

6 weeks is loooong.
I recall I had about a week to finalise the offer (ie agree on price), and then a further 2 weeks to obtain finance. This was admittedly a bit tight, so I would go with 3 days to agree on price, and 3 weeks for them to try get finance.

 

[marco79]

The Purchaser already signed the OTP for our asking price.

I'm going to give the Purchaser 2 weeks.

The problem is we cannot secure our next accommodation until we finalise the sale. We already missed out on a few good properties the last few weeks.

 

[Former member 61586]

The Purchaser already signed the OTP for our asking price.

I'm going to give the Purchaser 2 weeks.

The problem is we cannot secure our next accommodation until we finalise the sale. We already missed out on a few good properties the last few weeks.

why not make your offers to purchase other places conditional on the sale of your current place??

 

[IzZzy]

why not make your offers to purchase other places conditional on the sale of your current place??

That's a never ending pendulum, and based on my experience, sellers would be loathe to accept it.

 

[Venomous]

You may cancel any clause you want.

Also look at your sole mandate. There is probably a 180 day validity extention of the mandate after the initial 30 days lapse. Or something very similar. Maybe even that if you sell the house through another agent during that 180 days you have to pay solemandate their comm....


Personally I never give a sole mandate. I rather give a commitment that no other agent for 30 days. Agreement written by me , not their contract.
With it clearly stated that after that other agents will be invited...

 

[marco79]

The mandate ends tomorrow. I gave written notice for the end of the mandate as per agreement date. If you don't give written notice, it is an open ended contract.

I accepted the offer, but made it valid for 14 days, and scratched out the 14 day auto extension. The agency might present us with another offer tomorrow, I said with the same conditions.

My wife is 2 minds about selling. She's feeling emotional about moving, but the socio economic problems in our area is getting worse.