+64 3 546 9455
+64 21 816 598
Facebook

Moving on Up in Nelson

By in Featured with 0 Comments

This week we have been busy interviewing replacements for our lovely PA Miriam, who is transferring within our company to another position in the building. See our Facebook post HERE

If, as you read this, you think that an administrative job of 27 1/2 hours a week would work for you, with the potential to increase the hours, then please do get in touch as soon as possible – we would love to talk with you.

With one of our listings under conditional contract this week, it’s worthwhile talking about how, as a buyer, you should approach this if you’ve found a property you like that already has a contract on it.

There will be two alternatives. If the first contract has a break clause/cash out clause in it, then a second buyer can make an offer that, if the vendors accept, can activate the cash out clause in the first offer and give the buyer holding the first contract a short period of time to confirm their contract, OR the vendors can cancel that contract and you, as the second buyer, become the purchaser of the property.

Let’s deal with a couple of misconceptions – the first buyer cannot change the terms of their contract – they do not need to match the second offer. Their only role is to either confirm their contract as unconditional and pay their deposit, or withdraw within the allotted time period (usually 3-5 days). Also, the second buyer cannot gazump the first contract – this is not a process in NZ contract law as it is in some others countries such as England.

The second alternative as a buyer dealing with a property already under conditional contract, is if there is a shorter term for the contract and no cash out clause. In that case the appropriate thing to do is put in a back up offer. This can be a very effective way of bringing things to a head quickly, in so much as the first buyer cannot legally be given an extension to their contract. If they don’t confirm their contract as unconditional by the due date, then the vendors can cancel their contract and the second buyer becomes the purchaser.

Have a great week – stay warm out there.

Share This