Ex­plain­ing how mul­ti­ple of­fers work when sell­ing and buy­ing property

Whitsunday Times - - DOMAIN -

THE Real Es­tate In­sti­tute of Queens­land (REIQ) of­ten re­ceives queries from con­sumers about mul­ti­ple of­fers on a property.

A mul­ti­ple of­fer oc­curs when more than one prospec­tive buyer makes an of­fer on a property by sub­mit­ting a Con­tract of Sale.

Mul­ti­ple of­fers of­ten hap­pen in a ' seller’s mar­ket', when com­pe­ti­tion for res­i­den­tial property is great­est and there are more buy­ers than there are prop­er­ties for sale.

How­ever, it can oc­cur in any mar­ket and es­pe­cially for prop­er­ties within an af­ford­able price range.

Oc­ca­sion­ally prospec­tive buy­ers al­lege that agents tell them there is an­other of­fer on the property in or­der to se­cure a higher price for the seller, when in fact there is no com­pet­ing of­fer, REIQ man­ag­ing di­rec­tor Dan Molloy said.

There are heavy penal­ties for agents who mis­lead or de­ceive buy­ers by telling them there are com­pet­ing of­fers when there are not.

“When a seller is to be pre­sented with mul­ti­ple of­fers, a pru­dent agent will in­form prospec­tive buy­ers of that fact in writ­ing and ob­tain a writ­ten ac­knowl­edge­ment,” Mr Molloy said.

“This gives po­ten­tial buy­ers an op­por­tu­nity to sub­mit an of­fer if they have not al­ready done so, or to re­vise an ex­ist­ing of­fer that has not yet been ac­cepted by the seller.”

Mr Molloy said real es­tate agents have an obli­ga­tion un­der the Property Agents and Mo­tor Deal­ers Act 2000 to sub­mit all of­fers that com­ply with the seller’s in­struc­tions to the agent.

“Ex­cep­tions oc­cur when, for ex­am­ple, the seller in­structs their agent not to sub­mit of­fers un­der a cer­tain dol­lar fig­ure,” he said.

“Agents also have a statu­tory obli­ga­tion to at­tempt to get the high­est pos­si­ble price for the seller. The law fur­ther re­quires that agents be fair to buy­ers.”

Buy­ers should also be aware that sell­ers will ex­am­ine all the terms and con­di­tions of each of­fer be­fore de­cid­ing to ac­cept or re­ject any par­tic­u­lar of­fer.

The con­di­tions can make cer­tain of­fers more at­trac­tive for rea­sons other than the pro­posed price alone.

“Some sell­ers may be pre­pared to ac­cept a lower price if the of­fer is un­con­di­tional rather than take the risk that a higher of­fer may not pro­ceed to set­tle­ment, be­cause of the spe­cial con­di­tions re­quired by a buyer,” Mr Molloy said.

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