The best part of 8 weeks into it, I don’t think there is an agent or solicitor that will say the introduction of the new Seller Disclosure regime has been what anyone would call smooth.
From delays on delivery, confusion around what is required and annoyance at another cost imposed as part of the sale process, there has been plenty of frustration to go around. Nothing unexpected, and the normal kind of teething issues one would anticipate with a major change to the way we do business.
One interesting thing that has been highlighted during this process however, is how we deal with offers in the time between going to market (or even just getting a quiet word out) and having all the right paperwork in hand. 2 months ago, you could list a property and have a contract signed an hour later (outside of a community title) allowing for a binding agreement pretty much immediately. Now, in cases where an early offer comes in, there is now no reliable, binding way to make an agreement stick until you have that Form 2 in hand.
In one recent example, I had a property that had been listed, but not yet advertised outside of a sign out the front. Being a fairly rare kind of opportunity, there was no shortage of interest, though not everyone could see the right value. Soon enough though – the right offer was in with everything the seller could want – we just needed that disclosure. A week can be a long time in property though, and where those buyers started out head and shoulders above the rest, 7 days later there were more opportunities in front of the sellers.
With no-one legally bound at this point, a seller has the choice (and every right) to open up the floor to anyone and everyone in an effort to get every last dollar out of their asset. Frustrating for the buyer held up by paperwork, but technically fair as they were equally able to pull out or buy something else in the meantime. In this case however, the sellers were happy to keep a commitment made on a word and a handshake, and the original buyer happily had their contract signed.
The circumstances here are more a symptom of this teething period for the Form 2 – but a timely reminder that getting in early with your paperwork not only makes for a quicker sale, but can save extra angst along the way too.