[Lupin]

Does anyone know if a vendor can get out of a standard offer contract after both parties have signed? IE can another interested purchaser just offer more money and the vendor accept?

Many thanks in advance all :)

[Sam B]

We asked our real estate agent this last week, and he said "no".

[willsken]

My understanding from what we were told is they can't get out of a contract if is all is signed and a deposit paid. Have you paid the deposit?

[Lupin]

No, it's not me Nicola. It's before the unconditional date, so no deposit as yet but is a signed offer set to go through subject to finance and due diligence on Friday.

We need to know if they can get out of it if they want to before we decide what our next move is.

I have a feeling it is a no as you say, Sam, but would like some clarification adn would like even more to have this disproved!

[sizzlingbadger]

No, unless there is a 'cash out clause' on the contract. Then only if a 'cash buyer' comes along offering better money or better conditions then can the vendors accept.

Apparently if both parties have signed and there are no conditions then it's binding. If a person decides to pull out when there is a condition on the contract, ie subject to finance, builders report and/or LIM then you can only pull out if you have evidence that you can't get finance or builders report/LIM is not satisfactory.

[willsken]

No, unless there is a 'cash out clause' on the contract. Then only if a 'cash buyer' comes along offering better money or better conditions then can the vendors accept.


I understood that even with that clause they still had to give you a certain amount of time to pay, say for example you had to pay the money within 5 days or they were free to sell to someone else.

[sizzlingbadger]

Yeah, if the cash out clause is used the first buyers usually have got 3 days or more to decide whether they want to continue and pay the deposit or walk away. Then the new buyers will again have a certain time to go unconditional I believe.

As we've been in through this all recently we know how anxious the wait is :o

Good Luck with it all. I would wait, if you can, for the offer to go unconditional then look for something.

As we've lost a couple of properties whilst waiting for a sale and then again when we were waiting for our buyers to go unconditional we realise now we're in a much stronger position, basically cash buyers as we've got the finance in place to move.

Although with the way things are in Featherston right now we may not find anything in time :exit

[Lupin]

I'm not selling anything....the perfect little holiday home has come up for in-laws but has an offer on. There is a cash out clause but as the contract goes unconditional on Friday, it's looking unlikely.

[sizzlingbadger]

Oops :o Sorry the way you were speaking it sounded as if you were selling :)

It's still worth them having a word with the agent. If they put the offer in today or Monday and the other party have 3 days to pay the deposit they may not be ready.

It's worth staying in contact with the agent especially if the other party ask for an extension on Friday, if they do then they can jump in with another offer and not be subject to the cash out clause.