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Under contract


Hodgies2Oz

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What does it mean when an agent says the sellers are looking for £xxx for a house, but they are still 'under contract'. I had thought it was like our 'under offer' and a sale was going through, but not sure its the same thing now. Thank you

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Hi Hodgies

 

It is similar to a UK under offer. The housing rules in Oz are different - when you agree to buy or sell it is legally binding (unlike the UK when you can back out at the last minute)...

 

There are different contract structures, but in its simplest form, someone has already made an offer and if it is a simple sale structure it will complete and no one else can gazump the buyer, however the buyer has to complete within an agreed timeframe.

 

However there are times when a house is a "subject Sale", which means it is sold subject to the buyer selling their house (for example). In this situation, there are certain terms and deadlines applied to the buyer, which effectively allows the seller to still advertise the house to see if he can get a better offer. In the event he does get a better offer, then the seller can ask the original buyer to complete the purchase immediately or risk losing the house to the new buyer...

 

Sorry if this sounds complex - it is generally a much better system than the UK...

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