Well what great weather we are having. Actually for once I think Taranaki has missed the brunt of both the storms that have rattled the upper north island in the past week. Anyway..
I got asked this question today by email from someone who was reading this blog. It goes something like this… “What happens after agreeing to a sale of real estate verbally the seller changes their mind”.
Well in short there was no binding agreement between both parties. You only agreed to the deal in good faith and there was no binding contract for you as the purchaser to fall back on. This situation does sound terrible and must be a real pain in the butt, but you need to make sure things are documented and agreed on.
When you use an agent and you begin the process of negotiating that agent should start the negotiating on paper for you and get it signed. As a buyer this shows to the vendor that you are serious about buying this property and you have taken the right steps to do do it. But as well once you have signed the agreement what ever price and conditions are in that agreement are binding by you unless the vendor countersigns.
If the Vendor accepts the offer presented to them on paper and there are no conditions in the agreement to be met then well done, you now bought the property and you will own it upon settlement. On the other hand if it is not accepted and is countersigned by the vendor then the offer then put back on the table to you and you have the power of what to put on that agreement next time.
What I am trying to say is that if this agreement you are having with the vendor to buy their property is not on paper then it is not binding. To be binding it needs to be in a contractual form. So untill such time any agreement is on paper eighter party have the right to change their mind and walk away.
So if you are a buyer out their and are serious about buying a property you like my advice is to submit your offer on paper with any conditions you many or may not want. And then get the agent to present this offer to the vendor. This way of doing it both transparent and legal for you so if anything does go wrong you have ways of dealing with it.
Deon Swiggs
Property Profits