Youʹve been searching for that perfect property for weeks, and now found one you view as ideal. After discussion of all the relevant factors you have decided to make an offer on that property. What happens then?
In South Australia, in the vast majority of cases, it will be the agent or sales person who is responsible for writ- ing the offer and negotiating the sale. Your offer is submitted to the owners on a ʺcontract noteʺ, which upon being accepted and signed by them becomes the contract.
That contract note, which is your written offer for the property, will include the price you are offering to pay for the property, your preferred settlement date and the terms under which you are willing to buy it (subject to a building inspection, for instance).
If the owner agrees to accept your price, terms and conditions, you have a legally enforceable contract for the sale and purchase of the property.
It is important you get the agent to explain all the conditions and how they are applied. Read the contract carefully and ask the sales person to explain any terms or conditions that arenʹt entirely clear. Check the price, the settlement date and the inclusions in the sale (for instance, the built-in robes are included in the sale, but the cubby-house isnʹt).
If the owners are unhappy with the price or any of the conditions you have offered, they will make changes to your offer to something that is acceptable to them. It may be they are looking for a higher price, or a different settlement date. By making any changes to your contract the owner has made you a counter offer - and the ball is back in your court.
If you were to sign their counter offer, once again you have a legally binding contract.
Once the contract is signed, your salesperson will prepare the Form 1 documentation (otherwise known as your cooling off papers). This is the standard consumer protection in South Australia. The cooling-off period is two whole business days after signing these documents - that is, not including weekends and public holidays, or the day on which the form was served on you. It begins at the time of the buyer receiving the Form 1
Notice of Offer - Form R3 & R7