Under Offer

When our clients purchase, it’s not unusual for them to spot the property online with a scheduled open for inspection. This can be alarming, especially after they’ve cracked the champagne and told their family and friends that they have bought.

So, why is the property still being advertised for sale if it’s sold?

The answer is; because the property is under offer. It’s sold, but conditionally. In Victoria most* purchasers are entitled to a three day cooling off period. During this time, the vendor and their agent will be cautiously optimistic about the sale. The vendor cannot end the contract, but for the duration of the cooling off period, the purchaser can. Many agents will continue to advertise the property in the event that other buyers could be attracted as backup buyers. 

The cooling off period isn’t the only reason for a conditional sale though. Many buyers include finance clauses, (or building and pest inspection clauses) in their offers. Until the clause has been satisfied, the property sale is not an unconditional one. For the defined period, the vendor will be nervously awaiting the outcome of the conditions that the buyer has introduced.

The online listing will likely feature “Under offer” so that other buyers are aware. Sometimes a sale board has an ‘Under offer’ sticker, and agents will advise buyers on arrival that the property is Under offer.  Sometimes we’re asked if we can assist a purchaser who has fallen in love with a property that is under offer. We can’t purchase the property unless the sale doesn’t proceed with the current buyer. Agents will collate names and contact details of any interested parties, so our advice to buyers is to notify the agent that they’d like to be contacted should the sale not proceed.

While it might feel alarming to find that the property you’ve just purchased is still being advertised and opened for buyers to inspect, there is no risk that the property will be sold to another unless you opt no to proceed with the contract.

This topic is a common one, and we’ve previously written an article about it here.