Back-Up Offers

[Petals]

I made an offer on a property, and was advised that the offer is a back-up offer in that, the vendor has already accepted a conditional offer, and my offer is only to ensure that I would be first in line should the conditional offer fall through.

My "back up" offer has not been accepted by the vendor, and today the agent rings me and advises I need to sign a multi-offer form adjusted with the highest price I am prepared to pay.......which now makes me think I am in the running, opposed to just if the conditional offer falls through.


Questions

Is the process with "back up" offers.........
Is it normal for the multi offer form to completed before the existing conditional offer expires.......
Is it normal for agents to get a S&P accepted as a back up offer before the existing conditional offer expires.

[ladyagent]

Something amiss here.
A multi-offer is different to a "Back-Up Offer.
Get it clarrified with the Salesperson.

Maybe it is a Multi Backup Offer?

[essence]

Sounds weird.

I haven't heard of a back-up offer having to sign a multi-offer form. That would mean that there are other back-up offers(?). That makes it a two tier system for the vendor. I think the REA is just using you.

Ask the REA directly - Are there other back-up offers?? Or are you using my offer as a "stalking horse" so that the vendor can choose the offer already in front of them? (I've known this to happen before)

Is this property for you (PPOR) or an investment? If it's for you, you may want to keep working this offer but if it's an investment, is it worth the effort?? There's always a decent offer coming on next week/month.

Let us know how you get on.

[Petals]

I am told I have to sign a multi offer form as there is another back up offer...........forcing me to show my best price upfront.........but I certainly feel something is not right.

[TheLiberalLeft]

I flatly refuse to do this best-offer bollocks.

[Petals]

so last night, I'm told my backup offer was accepted........and today my laywer advises me he has received the S&P agreement.....................Is this normal for a back up offer. Do laywers get contacted for back up offers?

[Ivan McIntosh]

They get contacted because you, presumably, put their contact details on the back. So the lawyer will follow up the progress of the lead contract and, hopefully, keep you informed.

I'm a bit dubious of all the multi-offer carryon, but I suppose it all boils down to how much you are willing to pay.

[Dood]

do backup offers require deposits , if stated on the contract, to be paid to the agency even though the contract is pending the outcome of the initial offer? I have a backup offer on a property and the agent has just rung me saying that "administration require a cheque from me"? The offer in first does not expire until Friday so i woudl expect my offer to come into play as of saturday and at that point I need to pay the deposit. Am i missing something here??

[TheLiberalLeft]

I'd tell them to piss off, Dood. They can "require" a chq all they like. Until yours is unconditional, don't pay.

[Dood]

i thought so

I'd tell them to piss off, Dood. They can "require" a chq all they like. Until yours is unconditional, don't pay.

i will keep my wallet in my pocket until unconditional day!! Thanks TLL

[Perry]

the agent has just rung me saying that "administration require a cheque from me"

Answer: Sure. Just go ahead and give them one of yours.

What a sad semblance of a buck-passing excuse.

[Ivan McIntosh]

do backup offers require deposits , if stated on the contract, to be paid to the agency even though the contract is pending the outcome of the initial offer? I have a backup offer on a property and the agent has just rung me saying that "administration require a cheque from me"? The offer in first does not expire until Friday so i woudl expect my offer to come into play as of saturday and at that point I need to pay the deposit. Am i missing something here??

Although in general terms I like the advice you got from TLL, you might have contracted in your agreement to pay immediately. The earlier contract falling over is just another condition like anything else...finance, LIM etc..except that it is a vendor condition rather than a purchaser one. If you didn't specifically note that the deposit is payable on unconditional, then it's payable now. If you are required to pay, are given notice by the vendor to pay or else, but don't pay, the vendor might become able to cancel the agreement immediately if a better back up came along.

[Dood]

Although in general terms I like the advice you got from TLL, you might have contracted in your agreement to pay immediately. The earlier contract falling over is just another condition like anything else...finance, LIM etc..except that it is a vendor condition rather than a purchaser one. If you didn't specifically note that the deposit is payable on unconditional, then it's payable now. If you are required to pay, are given notice by the vendor to pay or else, but don't pay, the vendor might become able to cancel the agreement immediately if a better back up came along.

It was the agent that asked for the cheque and not the vendor. It gets interesting...upon review of the s&p agreement it appears not all pages have been signed by all trustees on the vendors end. Seems a good enough reason not to give a cheque until the agreement is complete. By the time all signatures are obtained, the first offer will have had an outcome of either falling over or acceptance/unconditional.

[Ivan McIntosh]

It's the vendor's agent, so it probably counts. If you're not worried about the agreement being cancelled, then up to you. Just bear in mind that if you point out that not all trustees have signed and that there is no agreement until they have, then that's a cast iron excuse for them to cancel if they wish.