Have you finally found the perfect property but now have no idea how to take the next step?

Don’t worry, like many buyers out there, you’re not alone!

Is an offer on a house legally binding?

An offer on a house or unit is not legally binding until both parties have signed a contract of sale and a deposit has been paid.

Agents are also allowed to take multiple offers and offer them all up to the vendor, or even put forward a higher offer after you have submitted yours.

So how can you make an offer on a house legally binding?

This varies from State to State but in general, the offer is not legally binding on both parties until the buyer and seller have signed a contract of sale and section 32, the contracts have been exchanged and the deposit has been paid. 

When making an offer to purchase a property, it is important to be aware of the following:

• The agent must submit all offers in writing to the vendor. So rather than making a verbal offer, if you’re serious about securing the property put your offer in writing together with a holding deposit.
• The property remains on the market whilst the vendor considers all offers. Just because your offer is the first one submitted or even the highest offer, this does not necessarily mean that it will be accepted.

So before you make an offer, you may wish to first consult with a solicitor or conveyancer who can outline your rights and obligations as well as have the property imspected by a qualified building inspector.

Engaging a lawyer early in the process can help mitigate any miscommunication surrounding the agreement.

There is a 3 day cooling off period, however, still no cooling-off period three days prior to the auction, at an auction, and three days after the auction.

In Victoria, you actually write and sign a contract when making an offer.

By using the services of a Buyers Agent/Buyesr Advocate they guide you through the legalities of a contract.

Give Metrolinx a call for an initial free consultation on 0432 327 945.