- Auctions have no conditions
- To make an offer to a house planning on going to auction requires you to provide an offer under auction conditions (no conditions)
- No real point in making an offer to an auctioned house then
- Queensland has a 5 day cooling off period
- src
- It costs 0.25% of the property to pull out on this condition though
- Queensland can extend settlement up to 5 business days without needing permission from the seller
- You first make a non-binding offer by emailing the agent. You must provide the following
- condition of financing (and how many days that will take)
- 14 days is standard
- This is not business days and could cause problems if you’re entering a time of holidays
- condition on satisfactory Building and pest inspection
- 7 days is standard
- You must explicitly mention to the sellers that you are happy or unhappy with the B&PI otherwise things get messy legally
- date of settlement
- initial holding deposit on offer acceptance (should be put into a trust account provided by the agent btw)
- Usually 1% the offer
- This money is part of the whole sum. You have to pay the remaining 99%
- holding deposit after unconditional (same trust account)
- Usually 5-10% of the price of the property
- I believe you have to pay 4-9% though given the 1% you already put in
- If the seller likes your offer they’ll give you a contract
- It’s standard that the seller hasn’t signed and you’re expected to sign first
- Ensure lawyers read the contract before you sign anything! Who knows what could be done to it
- I recommend adding a “14 day Due diligence clause” ask your lawyers to include it in the contract prior you signing
- In Queensland when the offer is accepted (not settlement date) you are liable for insurance. Please get some
- At settlement the money from the holding deposit + the remaining part of your deposit + money from the bank end up with the seller and you get a house
- GLHF