OK, so my wife and I are looking to buy a place in Perth and in the areas we are looking the market is actually quite hot (so much for being in a downturn). The last three places we have wanted have all been "Multiple Offer" situations..
Anyways, as I understand it, in Western Australia there is no cooling off period if using the standard real estate institute of WA (REIWA) offer and acceptance doc (what most agents use). We have finance pre-approved and do not need to sell our current property.
I also understand that the deposit, in the traditional sense is used to "demonstrate a commitment to purchase" and is placed in a trust with the estate agent. This money is then used to go towards the purchase in a successful offer.
The Question_______
If finance is pre-approved, the lender specified and there is no cooling off period, AND you submit a written offer using the standard REIWA O & A doc, the contract is pretty much binding if accepted? So why the need for a deposit?
The real estate agent is indicating that a substantial deposit may be required, like $50k...we can get the cash, its just that its invested and generating a reasonable return elsewhere..
Why do I feel like Im about to get a little manipulated???
