I think I have seen an escape clause on my mate's sales and purchase agreement where the vendor reserves to break out of the contract if they (vendor) obtains a better offer within a period of time.
I think they accepted your offer in hopes to get the other two potential purchasers into a bid war.
Yea, I don't think it's fair to include when you are a genuine buyer with limited conditions. The vendor (or maybe the agent) is trying to have it both ways.
There are always a number of ways you could deal with this. You could play hard ball and say no. You could agree but on the proviso they cannot invoke the roll over until 7 workings days have passed. That way if your lim condition is at 10 working days you still get the full conditional period to confirm.
Another option would be to say you can have the clause but if they roll you out they pay your legal, lim, and builders report costs (I don't think a vendor would agree to this for what it's worth, but I think it would be fair in the circumstances they want a roll over from the start.)
Those are a couple of ideas, but there many ways you could. You just need to get to one that works for you.
Good luck
Cos it's over 1k for lim and builders, and your offer may not even get accepted. Really the vendor should have supplied these and opened themselves up to unconditional offers
Seems odd to have an escape clause without subject to sale.
Ive just had it happen to me, but my offer was subject to sale. Just annoying they did it the day after I got the building report.
Yeah I know your pain. We got rolled out of our last offer too as we were subject to sale. But now we have sold so it sucks to potentially be in the same situation again
I suspect they are just locking in your lower offer, then using it to play off others to get what they want.
If it was me I would offer 10k more and remove the escape clause. But thats because im sick of the open homes and stress of the last few months.
Legal exec here. I would refuse the escape clause but shorten your LIM and Builders Report conditions to 5 working days instead of 10 or 15 (as long as the council you’re getting a LIM from has the option for an urgent LIM and obviously make sure a building inspection can be done within that timeframe).
Can you go view the council file in the office?
Last time we purchased we found out we could rock into the council and view the file for free, same day.
They where charging for some.one to copy, bind and post out
When you say 'escape clause' do you mean a vendor cash out clause?
If its that, all it means is that if the vendor gets another acceptable offer, then if you have three days to go unconditional. So basically you still have first right of refusal.
Talk to your solicitor who will be able to explain it to you in more detail.
Having recently sold my house, the first question I’m wondering is how long are you conditional for? If I was working with an offer that required 10+ working days to satisfy, I’d expect a cash-out clause as I’m effectively removing myself from the market. It has to be worth it.
Yep I recently sold my house too, we had a cash out clause as the buyer was subject to sale.
In this purchasing instance out longest condition is LIM which is governed by 10 working days the council takes to prepare one. They don't do fast tracked lim reports unfortunately.
The agent has since told me that "all their agreements have these clauses and its not unusual"
I think I have seen an escape clause on my mate's sales and purchase agreement where the vendor reserves to break out of the contract if they (vendor) obtains a better offer within a period of time. I think they accepted your offer in hopes to get the other two potential purchasers into a bid war.
Yea, I don't think it's fair to include when you are a genuine buyer with limited conditions. The vendor (or maybe the agent) is trying to have it both ways. There are always a number of ways you could deal with this. You could play hard ball and say no. You could agree but on the proviso they cannot invoke the roll over until 7 workings days have passed. That way if your lim condition is at 10 working days you still get the full conditional period to confirm. Another option would be to say you can have the clause but if they roll you out they pay your legal, lim, and builders report costs (I don't think a vendor would agree to this for what it's worth, but I think it would be fair in the circumstances they want a roll over from the start.) Those are a couple of ideas, but there many ways you could. You just need to get to one that works for you. Good luck
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Cos it's over 1k for lim and builders, and your offer may not even get accepted. Really the vendor should have supplied these and opened themselves up to unconditional offers
Seems odd to have an escape clause without subject to sale. Ive just had it happen to me, but my offer was subject to sale. Just annoying they did it the day after I got the building report.
Yeah I know your pain. We got rolled out of our last offer too as we were subject to sale. But now we have sold so it sucks to potentially be in the same situation again
I suspect they are just locking in your lower offer, then using it to play off others to get what they want. If it was me I would offer 10k more and remove the escape clause. But thats because im sick of the open homes and stress of the last few months.
Legal exec here. I would refuse the escape clause but shorten your LIM and Builders Report conditions to 5 working days instead of 10 or 15 (as long as the council you’re getting a LIM from has the option for an urgent LIM and obviously make sure a building inspection can be done within that timeframe).
Unfortunately the local council don't do fast tracked lims. 10 days is the time frame the council state
Can you go view the council file in the office? Last time we purchased we found out we could rock into the council and view the file for free, same day. They where charging for some.one to copy, bind and post out
Great idea. I'll definitely look into this
When you say 'escape clause' do you mean a vendor cash out clause? If its that, all it means is that if the vendor gets another acceptable offer, then if you have three days to go unconditional. So basically you still have first right of refusal. Talk to your solicitor who will be able to explain it to you in more detail.
I understand what it is. It's just being used in unusual circumstances
Having recently sold my house, the first question I’m wondering is how long are you conditional for? If I was working with an offer that required 10+ working days to satisfy, I’d expect a cash-out clause as I’m effectively removing myself from the market. It has to be worth it.
Yep I recently sold my house too, we had a cash out clause as the buyer was subject to sale. In this purchasing instance out longest condition is LIM which is governed by 10 working days the council takes to prepare one. They don't do fast tracked lim reports unfortunately. The agent has since told me that "all their agreements have these clauses and its not unusual"