House sale deposit

More
11 years 3 months ago #26569 by ronnie
House sale deposit was created by ronnie
Hello all you wonderful knowledgeable folk.
I would like to know, what is normal accepted practice for paying the deposit when you buy a property.
We have signed a contract to sell ours, but it does not go unconditional for another 6 weeks.
My thoughts are that until they have paid the deposit of 10%, we are able to continue to market the property and potentially sell it to someone else.
I am not happy at having to wait 6 weeks to even get a deposit out of these folks, who happen to live in Australia.
Before I go and put the hard word on the agent, I would like some feedback on this issue please.

I seem to think the last time we sold, our buyer paid a deposit straight away. I know it is held by the agents for 10 working days before being passed on.

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368803 by foufee
Replied by foufee on topic House sale deposit
if it is still conditional then and you have a cash out clause you can still sell it to someone else as long as they fit the cash out criteria and the other people cannot go unconditional in the time frame allowed. Payment of the deposit (which to be honest we don't pay 10%, but that is negotiated in the contract and does not affect the vendor at all) is done within a stipulated time period of going unconditional - I would never pay for something I might not end up buying.

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368804 by greenfingers
Replied by greenfingers on topic House sale deposit
Our new place stayed on the market until we had gone unconditional.
It was no longer advertised in newspapers and had no open homes from the day we signed the contract, but the "for sale" sign stayed up right until we paid the balance, then the Sold sticker went on it :D .

Land agent said he could have sold it 10 times over, given the amount of ph calls he got from people just driving past and seeing the for sale sign. Good thing we got in first and were able to get our finances together!

9.5 acres with 300-odd pines and lots of wobbly fences [:D]

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368813 by ame
Replied by ame on topic House sale deposit

ronnie;360316 wrote: I would like to know, what is normal accepted practice for paying the deposit when you buy a property.

Ask your solicitor. It's why you are paying them.

A

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368822 by Kiwi Sapper
Replied by Kiwi Sapper on topic House sale deposit

ame;360330 wrote: Ask your solicitor. It's why you are paying them.

A

And do sit on the Lawyer's and Real Estate agents to ENSURE that the deposit IS made. Not at all uncommon for it not to be when the Real Estate Agent is a bit slack.

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368841 by DiDi
Replied by DiDi on topic House sale deposit
OK - having just sold, I dragged out my S&P agreement and this is what I agreed too.

From accepting and signing off my buyers Offer, they had 10 working days to get, at their request as part of the agreement, a Builder's Report (with clauses allowing me to remedy if they weren't satisfied and I had five days to repond on fixing or whatever (wasn't needed), a Registered Valuation (ten working days to cancel agreement if they weren't satisfied with any matters contained in the Report) and me getting a belated Code of Compliance on the Barn. All done and dusted within that time frame which meant the Sale went unconditional at the expiry of the 10 working days.

Settlement date on the other hand was three months from signing the agreement and I can assure you I would not have been selling if I had to wait six weeks to going unconditional. From memory, the deposit was paid into the Real Estate Agent's account the day it went unconditional (certainly not 10% - I believe you need to cover the agents commisssion and a bit more so around 5% in my case) and this was then paid out to my Lawyer within I thought about 5 days (you have to watch how long the agents try and keep it as they deduct their commisssion regardless before paying your Lawyer) and then my Lawyer paid it into my account immediately without deducting any fees because he was going away for Christmas and not back until mid-Jan. I'm sure he too would have happily sat on it but I asked for it and he obliged as he knows and trusts me!

Skimming back to your thread at the top of the page, I'm not sure why you agreed to six weeks as the standard terms and conditions are contained in the Agreement for Sale and Purchase Form that is approved by the Real Estate Institute of NZ and the Auckland Law Society Inc. The actual wording where I have said 5 days is TWO days and I pushed it out to 5 days (the right of reply section if problems for the buyer). So, my feeling without knowing what you signed is that you will have to read the small print and see if you agreed to withdrawing it from the market - and equally, depending on what they have asked for and how this is to be satisfied as purchase conditions, if you gave them 6 weeks then you probably can't get out of it.

Whoever your Agent is needs a kick up the backside if all this hasn't been covered and clarified. All agents have access to people who can do Builders Reports, Registered Valuations etc so why six weeks? Being in Aussie is irrelevant as the Agent could have organised it or the buyers Australian Lawyer through an independent party.

On the other hand, knowing you have wanted to sell for some time? and the market is not brimming with buyers, maybe you do have to go with the flow - but still work out why this has gone out for so long! The Agent is meant to have been working for you and a quick sale is a good sale. Love to hear what their response is. All the best.

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368849 by ronnie
Replied by ronnie on topic House sale deposit
Thanks all.

Didi, we have felt all along the agent has not been working for us.

The 6 weeks to go unconditional is something to do with the Aussie banks and releasing funds for purchasing property. The only conditions on the contract are the usual - LIM report and subject to finance.
They met our asking price, after a visit from the parents to find out why we would not budge down in price. The indications are they are dead keen.

There are no surprises for them in the LIM report - of that we are confidant.

So I guess we just have to sit it out and wait. I seemed to recall the last time we sold it, our buyer paid the deposit straight away. The agent held it for the required 10 days then released it to our lawyer. By this time, we had gone unconditional then our buyer pulled out stating no money.

We also have a different agent this time round.

We did insist on a cash out clause, so I shall instruct the agent to continue to market the property until the buyers either pay a deposit or go unconditional next month.

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368855 by Seaside
Replied by Seaside on topic House sale deposit
I've always (when buying/selling) done the deposit on going unconditional. Not before, and I personally wouldn't pay a deposit before going unconditional. Having said that, the usual period (in 2001 to 2006, practice may have changed) was 10 working days before acceptance and going unconditional.

Meanwhile, the understanding is that you are within your rights to continue marketing your property until it is unconditional. Interested parties can put in a 'back up' offer in case the deal falls through. Whether or not your real estate agent can be arsed to carry on marketing is another story.

By the way, my real estate agent always put the deposit paid to me into their trust fund, only released (minus their fee) on settlement. I figure that's common - otherwise if the seller defaults on the deal, then it's a helluva job for the purchaser to get the deposit back if it has been paid into the seller's account.

Kids, beasts, and chillies in Swannanoa South.
www.farmaway.co.nz

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368874 by terralee
Replied by terralee on topic House sale deposit
Well looks like you are going to be moving (fingers cosssed) at last ronnie[^] I really hope it all pans out for you this time ...and do you have another property to buy ...still the same one you had your eye on a wee while back??? Gosh I am nosey[:I] We took our place off the market after the first summer and never put it back on:rolleyes: can't be bothered with real estate[xx(][B)]
So what finally sold yours???Open homes??? different agent??? or just the right buyer at the right time and peserverence :p

We have always paid a deposit (whatever amount agreed upon) on going unconditional ...I think this is held in trust by the agents[}:)]

All the very best ..Cheers :D

Leonie & Zoo!!! :silly: :woohoo:

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368895 by ronnie
Replied by ronnie on topic House sale deposit

terralee;360393 wrote: Well looks like you are going to be moving (fingers cosssed) at last ronnie[^] I really hope it all pans out for you this time ...and do you have another property to buy ...still the same one you had your eye on a wee while back??? Gosh I am nosey[:I] We took our place off the market after the first summer and never put it back on:rolleyes: can't be bothered with real estate[xx(][B)]
So what finally sold yours???Open homes??? different agent??? or just the right buyer at the right time and peserverence :p

We have always paid a deposit (whatever amount agreed upon) on going unconditional ...I think this is held in trust by the agents[}:)]

All the very best ..Cheers :D


Well, it does look like we MAY have sold - have to wait till middle of next month to go unconditional. No other property to buy as yet. We lost both the properties we wanted due to not being able to sell here. The folk who have bought ours don't want to move back across the ditch for about 2 years, so we will rent it back for a while. That will leave us free to move when the right property becomes available. And it suits us as we have the winter feed all made and stored away.

No open homes - just does not suit us to have these so we didn't.
These guys had made a low offer on here, which we are used to as everyone wants it for nothing. We told them it was too low and $$$$ is our price. We also told them we did not care if we sold or not as sooooooo over it and would withdraw the property from the market and sit on it till the spring, and decide what to do then. The next day, they matched our price [:0][:0][;)]

Just getting a bit impatient now as want to get things done and dusted. This waiting 6 weeks business is so no fun. But it seems its to do with Aussie banking regulations in regard to property purchase - or at least that is what they are telling us. They do not have to sell other property to buy ours, but are "subject to finance" which is a fairly standard clause these days.

So its just business as usual for us untill and if we go unconditional. We have been here before and its all turned to custard for one reason or other. So will not get even the slightest bit excited until the money is in the bank.

TL, how is T's season going??? Our boys worked the first full 40 hour week last week and are back on short days this week. The rumour is night shift closing at Easter, which is not far away. Very, very short season with a lack of stock. I hope they last till Easter.

Please Log in or Create an account to join the conversation.

More
11 years 3 months ago #368901 by terralee
Replied by terralee on topic House sale deposit

ronnie;360415 wrote:

TL, how is T's season going??? Our boys worked the first full 40 hour week last week and are back on short days this week. The rumour is night shift closing at Easter, which is not far away. Very, very short season with a lack of stock. I hope they last till Easter.

Lots of short days and 4 day weeks ...this week is the first *full* week for months ...night shift has had a lot less work than Terry's day shift and another plant attached to Takapau has already shut down ..so been a very slow season ...Terry does not mind the semi retirement tho"[:0][;)] I don't think Terry's plant (Food Tech) will actually close ...they seem to keep it ticking over as they do the export/specialty meats ....Terry is putting in for August off (same as last year) to tie in with lambing[^] ...their part usually just closes down long enough for the routine maintainence.

So glad you have pretty much sold ...and how neat you can rent your own place back and have the luxury of time to find your perfect next place[^] You must be stoked ...CONGRATULATIONS :D
Cheers

Leonie & Zoo!!! :silly: :woohoo:

Please Log in or Create an account to join the conversation.

Time to create page: 0.222 seconds