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Basics of a deal


limpadd
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Posted (edited)

Common law and common sense aside... Have dealt with many such sellers on this forum. Unfortunately these individuals have not been taught the meaning of the word Integrity.. small word but means a lot.

Edited by RomP
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Posted (edited)

Some need urgent education regarding the basics of an agreement. Realizing that once an item is advertised at a certain price, a legally binding contract comes into place as soon as a buyer accepts the offer. Some sellers are still of the opinion that they have the option to alter the price after accepted by the buyer, and that a deal is only concluded once they accept the buyer offer to buy...

I hate to break it to you, but you are the one who needs "urgent education regarding the basics of an agreement". Absolutely everything you have said is wrong.

 

The seller can advertise whatever price he chooses, that is however not an offer, it is an invitation for you to make him one. NO agreement exists until you do so AND until he accepts YOUR offer and communicates it to you.

 

Edit: I see Harryn has already set you right.

Edited by eddy
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. I offered to buy at the advertised price upon which the wanted "to think it over", obviously not sticking to offer to sell. The next morning notified of a "correction in the price, due to a mistake". When questioning his behavior, he pleaded poverty and difficult times, shame. The loss of the deal is not the issue, but the lack of ethics. When getting more than one offer to purchase at the asking price, I'd say confirm the deal with the first respondent, and let others know that they were not first

If this guy is really going through difficult times, every extra cent that he can get is needed.

 

Cut him some slack, the extra money he got from someone else could be an extra meal or a month's rent.

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There is also the possibility that he did price the goods too low and only realised after he received several million responses.

 

It's a two way street - you can try and bargain him down so he has try and profit you up.

 

Supply and demand - free market principle and all that.

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Find a compromise, there must be a way where you both are happy.

If not, walk away! It’s not like the seller owes you anything!

 

Btw you didn’t have it in the first place, so the seller didn’t take anything from you. Only the possibility of you scoring a deal. You didn’t have it in your hands yet.

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I agree that is terribly poor form but unfortunately a very common occurrence. People advertise something, get a lot of response and then decide/realise that they could have advertised it for much more.

 

I have to add that as far as I know "Offer to Sell" is not a thing. Offer to Purchase however is. In this environment though neither of those two really exist.

half way there

 

a legally binding contract is based on an OFFER (could be to sell, could be to purchase) and ACCEPTANCE.

 

Then the contract is binding. Its easy when there are only 2 parties involved. i.e.  you and I, one offers the other accepts all good.

 

However when the OFFER isn't exclusive i.e. to one party but open to public then as someone here pointed out how do you know if you the person accepting were the first to accept. 

 

So the person who made offer needs to acknowledge that you have accepted and that the deal is binding.

 

Law is never black and white more kind of grey.

 

I guess this would be a bad time to mention the word integrity, does it still exist ?

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Mentioning Legal in a secondhand market holds as much weight as quicksand. Your best is just keep yourself in the market till the time is right and the price is acceptable for both parties. GL

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Posted (edited)

Dumb question. Is there a correlation between this deal and what happens in the Housing market?

 

Scenario:

I advertise my house for R2Mil with an estate agent. On the first Show Day there are 5 families that love the place and they all want to make an offer.

 

Now I realize that the market is very hot for my property and I could have gotten more.

 

Can one of the families take me to court for not accepting their R2Mil Cash offer?

 

My thinking is that the purchaser makes an offer and the seller ALWAYS has the option of not taking the offer? Even if the offer is above the asking price?

Edited by Vetplant
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Posted (edited)

Dumb question. Is there a correlation between this deal and what happens in the Housing market?

 

Scenario:

I advertise my house for R2Mil with an estate agent. On the first Show Day there are 5 families that love the place and they all want to make an offer.

 

Now I realize that the market is very hot for my property and I could have gotten more.

 

Can one of the families take me to court for not accepting their R2Mil Cash offer?

 

My thinking is that the purchaser makes an offer and the seller ALWAYS has the option of not taking the offer? Even if the offer is above the asking price?

short answer is no

 

the price is this case would be marked as subject to negotiation and written agreement

 

unless you say im happy with the price and dont want the option to negotiate up

Edited by rorydewet
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Hi Vetplant

 

This is not a great example because in terms of the alienation of land act, agreements for the sale of immovable property have to be in writing and signed.  In your example, the estate agent will possibly claim commission if you refuse to sell at R2 bar and you  subsequently don't sell.

Dumb question. Is there a correlation between this deal and what happens in the Housing market?

 

Scenario:

I advertise my house for R2Mil with an estate agent. On the first Show Day there are 5 families that love the place and they all want to make an offer.

 

Now I realize that the market is very hot for my property and I could have gotten more.

 

Can one of the families take me to court for not accepting their R2Mil Cash offer?

 

My thinking is that the purchaser makes an offer and the seller ALWAYS has the option of not taking the offer? Even if the offer is above the asking price?

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Hi Vetplant

 

This is not a great example because in terms of the alienation of land act, agreements for the sale of immovable property have to be in writing and signed.  In your example, the estate agent will possibly claim commission if you refuse to sell at R2 bar and you  subsequently don't sell.

Cool, thanks, understood.

 

It was just something I was wondering about, if you initially decide to sell your house and then for some reason get cold feet.

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It’s a real difficult one.

Having sold loads on the hub I often get in the situation where first couple of potential buyers express interest,ask lots of questions etc.Potential buyer number 4 comes later and just says I’ll take it finished and klaar.This might piss off the other buyers but I’ve found in my own experience if you see something and it’s what you want,and you know it’s a good deal,dont haggle and just commit.

Ive often had items sold within the hour but have buyers a few days later still  “making a offer”

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Cool, thanks, understood.

 

It was just something I was wondering about, if you initially decide to sell your house and then for some reason get cold feet.

From what I understand ( from own experience in selling) once you sign that sale agreement with state agents,if someone offers you your asking price you can’t refuse.They will have a legal case against you.

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Cool, thanks, understood.

 

It was just something I was wondering about, if you initially decide to sell your house and then for some reason get cold feet.

Along the same lines.

Many years back I wanted to purchase a business. 

Made the offer, offer was accepted, contract drawn up and signed, put steps in place to obtain finance, whilst that was underway I spent all my time at the business getting to better know its staff, customers and workings.

1 month later (finance was taking a little long) the seller gets cold feet and cancels the sale.

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