What does 'under offer' mean...
Discussion
Basically, I e-mailed asking if a specific industrial warehouse was still available.
The reply I got was "Unit 6, is now under offer but should the situation
change I will get back to you."
Does this mean that its already been acquired or what. I though under offer means that the property is offered at a lower price.
Is there anything I can do to acquire the property now or am I too late.
The reply I got was "Unit 6, is now under offer but should the situation
change I will get back to you."
Does this mean that its already been acquired or what. I though under offer means that the property is offered at a lower price.
Is there anything I can do to acquire the property now or am I too late.
qwertyford said:
Basically, I e-mailed asking if a specific industrial warehouse was still available.
The reply I got was "Unit 6, is now under offer but should the situation
change I will get back to you."
Does this mean that its already been acquired or what. I though under offer means that the property is offered at a lower price.
Is there anything I can do to acquire the property now or am I too late.
The reply I got was "Unit 6, is now under offer but should the situation
change I will get back to you."
Does this mean that its already been acquired or what. I though under offer means that the property is offered at a lower price.
Is there anything I can do to acquire the property now or am I too late.
"Under offer" means someone has expressed a serious interest in the unit, and probably have tabled an offer to the vendor, but that is all, no contract will have been signed yet more than likely, and as you will know deals do sometimes collapse for whatever reason, so I would just hang fire and keep an eye on the situation...
However, DO NOT sign any deal on any unit without going through the small print on the terms of the lease, for example is it a full repairing and insuring one, which means if during your tenure the roof needed repairs costing £20,000 YOU would be responsible, NOT the landlord........
Just be very very careful and take professional advice before putting pen to paper...
....
if the seller and buyer agree on a price the property becomes "under offer" but there is nothing legally binding (for instance as a buyer I might not actually be able to afford it, or the survey may come back with problems meaning I'd choose to walk away).
It could be under offer at any price.
There are occasions when a seller has their property under offer but then chooses to sell to someone else (Gazumping).
I believe above only applies in England and Wales as there is no formally binding contract until the property changes hands. In Scotland I believe an offer accepted becomes legally binding regardless of whether this is verbal, writeen, etc.
It could be under offer at any price.
There are occasions when a seller has their property under offer but then chooses to sell to someone else (Gazumping).
I believe above only applies in England and Wales as there is no formally binding contract until the property changes hands. In Scotland I believe an offer accepted becomes legally binding regardless of whether this is verbal, writeen, etc.
che6mw said:
if the seller and buyer agree on a price the property becomes "under offer" but there is nothing legally binding (for instance as a buyer I might not actually be able to afford it, or the survey may come back with problems meaning I'd choose to walk away).
It could be under offer at any price.
There are occasions when a seller has their property under offer but then chooses to sell to someone else (Gazumping).
I believe above only applies in England and Wales as there is no formally binding contract until the property changes hands. In Scotland I believe an offer accepted becomes legally binding regardless of whether this is verbal, writeen, etc.
It could be under offer at any price.
There are occasions when a seller has their property under offer but then chooses to sell to someone else (Gazumping).
I believe above only applies in England and Wales as there is no formally binding contract until the property changes hands. In Scotland I believe an offer accepted becomes legally binding regardless of whether this is verbal, writeen, etc.
What sort of period does an 'under offer' take to become legally binding if both parties were to agree on the terms of the lease.
How can I 'gazump'. The agent is Storey Sons and Parker. Should I just go to speak to the agent as soon as possible expressing my interest in the property and that I am willing to pay FULL rent asked. If the property has been on the market for about 1 year and was considered over priced at £8000/annum, what sort of offer could the other party have offered for the property and is it likely that they will have already had their lawyers involved. Does this also mean that the landlord of the property will be delibertaing the offer from the other party and be writing up a lease for the property, which will then be offered to the other party. If the other party signs, then it becomes legally binding, right. OR, should I go speak to my solicitor as soon as possible tomorrow morning and explain to him the situation and let him contact StoreySP.
Alternatively, I've found the property on the land register but the details can't be downloaded and can only be obtained via postage which could take a while. Are there any other ways of finding out the owner of the property and then to contact them directly. Are these people reliable www.landsearch.net/owner.html?gclid=CI2Ult_CuIgCFRiUXgod6mAy0A
Just to clarify, this is a lease on an industrial building and I'm not buying a house.
Anyway, thanx for the help.
qwertyford said:
What sort of period does an 'under offer' take to become legally binding if both parties were to agree on the terms of the lease.
Not sure if commercial is different to be honest but when purchasing residential property it doesn't become legally binding until exchange and completion of contracts as far as I am aware. That could be months down the road. The only thing really tying people in is the initial costs involved with purchasing a property (conveyancy fees, survey fees, etc) but they could stop the purchase and walk away at pretty much any stage.
With renting I guess things become legally binding (though not sure how water tight) once a contract is drawn up and signed by both parties (landlord and tenant). This could take some time though as the landlord will often require credit searches and references for the tenants first before signing of a contract.
Usually the property is removed from the market once a nominal deposit is taken by the estate agent and often under the condition that mortgage details for purchasing the property and a survey are arranged within a few weeks. Typically if this isn't done six weeks after an offer is accepted the property would likely go back on to the market. Rental is similar. The property would usually come off the market whilst references and credit searches are carried out.
qwertyford said:
How can I 'gazump'. The agent is Storey Sons and Parker. Should I just go to speak to the agent as soon as possible expressing my interest in the property and that I am willing to pay FULL rent asked.
Yes. By all means try. Its a very grey area morally speaking but that would come down to the agent and the seller/landlord. As well as offering more money than those already after the property it usually helps to be in a better position too (i.e. a first time cash buyer if buying, or perhaps very flexible to move in to a property whenever if renting)
Edited by che6mw on Thursday 9th November 00:39
qwertyford said:
If the property has been on the market for about 1 year and was considered over priced at £8000/annum, what sort of offer could the other party have offered for the property...
How long is a piece of string? Impossible to guess - the landlord could be desperate and have accepted a very low offer, or the renters may have loved the place and offered high.
The best you can do is if you really want it offer what you'd be prepared to pay. We recently did this whilst trying to buy our new house. We put in an offer we felt was fair and we were comfortable with. If we didn't get the house we felt we could walk away happy knowing we'd offered as much as we felt it was worth to us. It paid off in the end - we've landed our dream house at a good price.
che6mw said:
qwertyford said:
What sort of period does an 'under offer' take to become legally binding if both parties were to agree on the terms of the lease.
Not sure if commercial is different to be honest but when purchasing residential property it doesn't become legally binding until exchange and completion of contracts as far as I am aware. That could be months down the road. The only thing really tying people in is the initial costs involved with purchasing a property (conveyancy fees, survey fees, etc) but they could stop the purchase and walk away at pretty much any stage.
With renting I guess things become legally binding (though not sure how water tight) once a contract is drawn up and signed by both parties (landlord and tenant). This could take some time though as the landlord will often require credit searches and references for the tenants first before signing of a contract.
Usually the property is removed from the market once a nominal deposit is taken by the estate agent and often under the condition that mortgage details for purchasing the property and a survey are arranged within a few weeks. Typically if this isn't done six weeks after an offer is accepted the property would likely go back on to the market. Rental is similar. The property would usually come off the market whilst references and credit searches are carried out.
qwertyford said:
How can I 'gazump'. The agent is Storey Sons and Parker. Should I just go to speak to the agent as soon as possible expressing my interest in the property and that I am willing to pay FULL rent asked.
Yes. By all means try. Its a very grey area morally speaking but that would come down to the agent and the seller/landlord. As well as offering more money than those already after the property it usually helps to be in a better position too (i.e. a first time cash buyer if buying, or perhaps very flexible to move in to a property whenever if renting)
Edited by che6mw on Thursday 9th November 00:39
Resi property becomes legally bound upon exchange of contracts (which on resi takes an average of 8 weeks from offer to exhange.) Completion is when you have to pay the money over, normally 4 weeks after exchange.
With commercial, generally you exhange/complete at the same time. The transaction is generally quicker than that on a resi property.
As has been said, technically you can submit a counter offer to the agent/owner at any point up to completion of the lease.
Points to push to the agent to make your offer more attractive to the owner would be:
Full asking rent (assuming the other party has offered less than asking)
Length of 'Rent Free' period (again, none/shorter than the other party would look favourable to the freeholder)
Length of lease offered same or longer than the other party.
Strength of covenant. This can be the fall down. Many freeholders would look at taking slightly less rent if the over was from a 'Blue Chip' covenant (Plc or large Ltd Co) over a 1 man band starting up a new business.
Offer of (if any) a Rent Deposit which the freeholder keeps until the end of the lease/your liability/an agreed fixed period.
That's the main points. If you are really intersted, put in an offer (especially if the other offer is recent) as that's the best way to guage if you/your offer is better than what they have on the table from the other party.
HTH
Oh, and if you really want to make the landlord/freeholder's day, offer to take the lease outside of the 1954 Landlord & Tenant Act. Its risky/costlier in the long term if you intend/wish to stay in the property at the end of the agreed lease. Get legal advice on this point.
In basic terms: Inside the act your tenancy is protected and at the end of the term you have the right to negotiate a new lease at a market rent. Outside the act, you have no guarantee of staying in the property. Technically the freeholder/landlord can ask you to pay a premuim and an inflated rent to stay in the unit (which is why landlord's love it) but the real point comes down to the property. If its hard to shift now, it may also be hard to shift in the future and you may be able to negotiate a reasonable rent/no premium. However, if the property is in a good location/sought after, then the landlord would have the upper hand in the negotiations (if he had more than you interested in renting, he can play one off against the other/s)
Phew, Im going back to bed now
If you dont know what you're doing, get proper legal advice. A good property lawyer may save you money in the long run
In basic terms: Inside the act your tenancy is protected and at the end of the term you have the right to negotiate a new lease at a market rent. Outside the act, you have no guarantee of staying in the property. Technically the freeholder/landlord can ask you to pay a premuim and an inflated rent to stay in the unit (which is why landlord's love it) but the real point comes down to the property. If its hard to shift now, it may also be hard to shift in the future and you may be able to negotiate a reasonable rent/no premium. However, if the property is in a good location/sought after, then the landlord would have the upper hand in the negotiations (if he had more than you interested in renting, he can play one off against the other/s)
Phew, Im going back to bed now
If you dont know what you're doing, get proper legal advice. A good property lawyer may save you money in the long run The Londoner said:
"Under offer" on commercial property means no more than terms have been agreed subject to contract and solicitors are instructed. Theoretically the property could still be available if a better offer comes along and depending on the morals or lack of them of the parties involved.
A bit harsh? What if the current tabled offer was way below the asking rent (the prospective tenant taking the piss knowing the property has been empty for a long time and no other interest shown?). If Tenant B came along and offered the full asking rent, why would there be a lack of morals on the landlord's part?
If I was asking £8k for something, had an offer of £6k and a decent tenant came along and offered me the full rent, I would of course ask Tenant A if he would increase, and if he didnt, go for Tenant B? Cant see the problem.
Thank you so much everybody for the advice.
The properties been empty for quite a while and for what it is, considering market value, the area its in etc, the property is generally considered overpriced to 99% of prospectives. I, being in the other 1% am interested in the property, and purely based on its position it is perfect for what I am looking for and also very rare too.
Is it common for potential tenants to offer lower than the asking price if the properties been empty for a while, just to save on a bit of rent.
thanx aagin
The properties been empty for quite a while and for what it is, considering market value, the area its in etc, the property is generally considered overpriced to 99% of prospectives. I, being in the other 1% am interested in the property, and purely based on its position it is perfect for what I am looking for and also very rare too.
Is it common for potential tenants to offer lower than the asking price if the properties been empty for a while, just to save on a bit of rent.
thanx aagin
qwertyford said:
Is it common for potential tenants to offer lower than the asking price if the properties been empty for a while, just to save on a bit of rent.
Well of course it bloody is. If you were looking to buy a car that you knew the seller had been advertising for ages and was desperate to get off his driveway, would you offer the full price or would you feel like you were in a strong bargaining position to offer him a lower price because you felt he was desperate to shift it?
FUBAR said:
A bit harsh? What if the current tabled offer was way below the asking rent (the prospective tenant taking the piss knowing the property has been empty for a long time and no other interest shown?). If Tenant B came along and offered the full asking rent, why would there be a lack of morals on the landlord's part?
Perhaps, but more years than I care to admit to working in commercial agency has left me somewhat cynical as to attitudes on either side of the negotiating fence.
The Londoner said:
FUBAR said:
A bit harsh? What if the current tabled offer was way below the asking rent (the prospective tenant taking the piss knowing the property has been empty for a long time and no other interest shown?). If Tenant B came along and offered the full asking rent, why would there be a lack of morals on the landlord's part?
Perhaps, but more years than I care to admit to working in commercial agency has left me somewhat cynical as to attitudes on either side of the negotiating fence.
And having worked from the other side of the fence for 25 years, I was just proposing another view
There are some right shysters out there, but not all of us are bad
[quote=Wacky Racer
However, DO NOT sign any deal on any unit without going through the small print on the terms of the lease, for example is it a full repairing and insuring one, which means if during your tenure the roof needed repairs costing £20,000 YOU would be responsible, NOT the landlord........
Just be very very careful and take professional advice before putting pen to paper.......[/quote]
Good Advice, especially as you say that it has been empty for a while. Make sure a Schedule of Condition is undertaken before you sign so everyone knows exactly what state the building is in otherwise you may see some eye watering bills. Get yourself a good building surveyor if you can.
However, DO NOT sign any deal on any unit without going through the small print on the terms of the lease, for example is it a full repairing and insuring one, which means if during your tenure the roof needed repairs costing £20,000 YOU would be responsible, NOT the landlord........
Just be very very careful and take professional advice before putting pen to paper...
....[/quote] Good Advice, especially as you say that it has been empty for a while. Make sure a Schedule of Condition is undertaken before you sign so everyone knows exactly what state the building is in otherwise you may see some eye watering bills. Get yourself a good building surveyor if you can.
If you're from Newcastle (and if you'rs dealing with SSP then that's likely) then any tactic is acceptable. Try speaking to the owner direct.
In Scotland a property is Under Offer when an offer is received at an acceptable price but the lawyers are haggling over the small print. 'Missives have not been concluded' which means the deal is not finalised. This is bad for the seller because his lawyer is ethically obliged not to treat with any other parties but for the buyer, he can walk away if he feels like it with no commitment.
Hope that doesn't sound unprincipled.
In Scotland a property is Under Offer when an offer is received at an acceptable price but the lawyers are haggling over the small print. 'Missives have not been concluded' which means the deal is not finalised. This is bad for the seller because his lawyer is ethically obliged not to treat with any other parties but for the buyer, he can walk away if he feels like it with no commitment.
Hope that doesn't sound unprincipled.
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