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undated contract due to uncertainty

Z

zaffy

New Member
We found a property. We put in a bid. The bid was accepted. Coronavirus happened. The estate agent contacted us to see if we wanted to sign an undated contract. What are the advantages and disadvantages to us.? What are the advantages and disadvantages to the vendor? What are the advantages and disadvantages to the estate agent?
Thank you in advance for information and thoughts on this predicament.
 
L

Longterminvestor

Administrator
I am not sure why anyone would want to sign an undated contract? What do you see as the benefits?
 
Z

zaffy

New Member
We can see no benefits. This is why I pose the question.
The property took a long time to find, but once the coronavirus lockdown began, we decided to put the procedure on hold.
I presume, we would have to, with the signing of a flexible dated contract, pay the standard 10% deposit.
We also wondered if prices might drop. If so, will our offer be above the property's marketable value?
Being tied into the contract gives us no flexibility to adjust.
 
NewOrleansHomeBuyer

NewOrleansHomeBuyer

New Orleans Property Investor
It makes sense to extend the contract as things are moving much slower with title companies etc. Undated is a bit extreme though. I would do 90 days or something that works for you but wouldn't sign an undated contract.
 
L

lookinginvest

Member
I totally agree - why anyone would even suggest you sign an updated contract is bizarre. What happens if the price fell by 10% tomorrow and you had signed an undated contract for the earlier valuation.
 
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