Q I’ve made an offer on a property, which the owner accepted. My solicitor and bank have been advised to arrange a valuation for finance and contract exchange. Despite this, the agent continues to advertise the home and to show it to other people. Do I have any rights if a higher offer is made?
A. The fact is, until you have exchanged contracts, neither you nor the vendor is bound to the purchase/sale.
This is why buyers ought to exchange contracts immediately once their offer is accepted, using the benefit of the cooling off period to obtain pre-purchase reports.
If another offer is made and you have not exchanged contracts, then you have no recourse; whereas, if you have exchanged contracts and are in your cooling off period and another offer is made, the vendor is not able to accept the other offer, even if it is higher than yours.
Once the contracts are exchanged, the vendor is not able to sell the property to anyone other than you, at your agreed price.
My advice is the quicker you get to the exchange of the contract, the quicker you know you have been successful in buying the home.
With the market heating up on the back of lower interest rates, there is definitely more competition for properties. If you are a serious buyer, make sure you have your finance and legal representation organised and ready to go. As the old saying goes, “If you snooze, you lose”.
Answers are general comment, and readers should always seek their own independent professional advice.
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Greg Trembath is Principal/Licensee at
Greg Trembath Real Estate.
Licensed Real Estate Agent – Licensed Auctioneer.