If your bid is acceptable you will be asked to sign a contract
Signing a formal Contract of Sale of Real Estate, is the final and most important part of the sale.
When the negotiations have concluded, and both parties are satisfied with the deal, it is put in writing in the form of a written and legally binding Contract of Sale of Real Estate.
Who prepares the contract document?
The Contract of Sale of Real Estate is the document by which the vendor makes a formal offer to sell the property to the purchaser. The contract is prepared by Lawyers Real Estate, based on information contained in the purchaser's bid, and then sent to the purchaser for checking. A copy of the contract can also be sent to the purchaser's legal representative.
The purchaser will be advised to have the contract checked by their legal representative before signing it.
Why the purchaser signs first
The purchaser signs the contract first, because it is the purchaser who is offering to buy the vendor's property.
How long does the vendor have to accept the purchaser's offer?
In Victoria, the standard Contract of Sale of Real Estate allows a period of 3 days before the purchaser's offer automatically lapses. However, the purchaser may nominate a longer period of time if they wish.
It is always best to obtain advice before signing a contract, as contract documents and the law associated with them can vary from State to State.
Can someone else buy the property during the offer period?
Yes, because nothing is final until the purchaser's offer has been accepted by the vendor. Usually, acceptance is confirmed when the vendor has signed the contract, and provided a copy of the signed contract to the purchaser.
The laws associated with contracts can be quite complicated, and can vary from State to State. It is important to get legal advice before making any decisions regarding the contract.
The purchaser's right to "cool off"
In most States, a purchaser will be entitled to cancel the contract within a few days from the day the purchaser has signed the contract. In Victoria this period is 3 days, but it will vary from State to State.
It is important to obtain legal advice to discover whether a cooling off period will apply in particular circumstances, and the length of any cooling off period applicable to the purchase.
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