In this video we explain MULTIPLE OFFER SCENARIOS in QLD - what to do and how to approach the situation for Queensland Property (Real Estate). The video includes best practices, risks, must-do’s and so much more.

This blog discusses best practices, risks, must-do’s and so much more for multiple offer situation in Queensland property. 

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Hi everybody - George Sourris, Empire Legal.

Today's topic: MULTIPLE OFFER SCENARIOS

Often when buyers are looking at a property and trying to buy, there are multiple offers on the table. This area of law is often not well understood.

We are going to explain it here - in simple terms.

People don't understand the process.

The market, as at today, February 2024, is a seller's market - meaning that there is limited housing stock available.

This gives the seller an advantage - being able to achieve a high price -  due to large buyer demand and limited stock available to purchase. 

Occasionally prospective buyers have complained that agents tell them there are other offers on the property, in order to secure a higher price for the seller, when in fact there may be no competing offer or offers. There are heavy penalties for agents who mislead or deceive buyers by telling them there are competing offers when there are not. 

The law that governs multiple office scenarios is found in the Property Occupations Act (2014) (POA). Real estate agents must ensure that ALL offers are presented to the seller, within a reasonable timeframe, in writing. Keep in mind that agents also have a statutory obligation to attempt to get the highest possible price for their client, the seller.

In Queensland, there are several options available in a multiple offer scenario to the vendor. They can choose to accept the higher offer, negotiate with a particular buyer, or reject all offers. Keep in mind  that a vendor does NOT have to accept ANY offer, even if it's the first offer or the highest offer. 

It is best practice that agents use a multiple offer form that obliges each party that has made an offer to sign, acknowledging that they have been made aware that this is a multiple offer scenario and they may not have the opportunity to make a second offer.

If a prospective buyer wishes to revise their offer, they should consider making the offer more attractive i.e. - more appealing terms - so less conditions, a higher deposit, faster settlement, or a higher purchase price.

This is the buyer's chance to put their best foot forward to secure the property and get their offer accepted.  This approach alerts the potential buyers to the existence of other offers and provide them with an opportunity to make an increased offer to purchase the property if they wish.

In this situation, agents should ensure that no pressure is exerted on potential buyers to increase their offer, as this may be considered to be high pressure tactics, misleading or unconscionable conduct.  In circumstances where the agent has received multiple offers from potential buyers, before the seller has executed a written contract of sale, it is recommended that the agent advise their seller client of the offers and discuss the following course of action as a method to handle a multiple offer scenario:

1 - Advise the potential buyers that the seller has received other offers before they've executed a written contract of sale.  In disclosing the existence of further offers, agents should be mindful not to disclose any details of the offers to the other potential buyers.

2 - Approach the potential buyers and provide them with a timeframe within which to provide their best and final offer to purchase the property.

3 - the offers are to be presented to the seller. 

4 - if the agent has been instructed to advise the potential buyers to submit their best & final offer, it should be stressed to the seller that these offers should not be used as a means to commence further negotiations with the potential buyers. 

5 - a written acknowledgement should also be obtained from the potential buyers that they've been informed of the multiple offers. If the seller considers this course of action to be appropriate, the agent should ensure that they obtain instructions from the seller client, in writing.

Agents should also ensure that they keep detailed file notes of their conversations with their seller clients, and or potential buyers.

It is important that agents are aware that they can be investigated by the Office of Fair Trading following a complaint from a potential buyer. 

The agent would have to produce evidence of the existence of other potential buyers and higher offer. This is why we suggest you always use the multiple offer forms, every time. Agents - you need to protect yourself and comply with the law.

A multiple offer situation can be stressful for property buyers in Queensland. Our experienced team can help you navigate this process.

We are here to help.

A special shout out to Mr. Alec McEwan from McGrath Bayside Wynnum Manly for this blog suggestion. 

Thanks guys.

See you on the next one.

Get in touch with us. Jump on our Instagram, our Facebook, our website.

George Souris. Empire Legal.

If you have any questions, you can email me: george@empirelegal.com.au. 

If this has added value, please share this blog / YouTube video with a friend. 

Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Gold Coast, Queensland, Australia.

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.