General questions about the SLOD! onling bidding system
Answers
Is SLOD! an online auction?
Yes, SLOD! can be regarded as a real estate auction because it allows purchasers to place competing bids, so that the purchaser who submits the highest bid takes priority over other bidders.
SLOD! is also similar to other real estate auction processes insofar as that the property is not finally sold unless and until both the purchaser and the vendor have signed a formal Contract of Sale of Real Estate.
But unlike other real estate auctions, SLOD! does not rely solely on price as the determining factor in prioritising bids. SLOD! allows bids to include special conditions, so that a bid can be made subject to finance approval or satisfactory building or pest inspections. The SLOD! star rating system allows bids to be further ranked according to special conditions.
So, although SLOD! uses an auction process to prioritise bids, there is flexibility to allow first-home buyers, those relying on bank finance, and those requiring inspections to also place bids on a property.
The winning bid is determined, not only by price, but also according to any special conditions that purchasers may attach to their bids.
Is SLOD! a form of sale by negotiation?
Yes, but it differs from the negotiation procedures used by real estate agents.
Negotiations conducted by real estate agents invariably involve a conflict of interests. This is because the real estate agent "negotiates" for both parties at the same time, in circumstances where the real estate agent has an interest in the outcome of the sale (commission). Conflicts of interest can lead to improper practices, such as the use of undue influence or deception strategies.
The SLOD! sale process eliminates these problems. Purchasers place bids (which are non-binding expressions of interest only), and the vendor determines which bid is the most acceptable, based on the price offered and any special conditions attached to the bid.
Having decided on an acceptable bid, the vendor and the bidder enter into negotiations with a view to finalising the sale. The vendor will be represented by their lawyer, and the purchaser will be represented by their own lawyer. Of course, a purchaser who does not appoint a lawyer is entitled to negotiate on their own behalf. Some States have a mandatory "cooling off" period, which gives an unrepresented purchaser time to obtain legal advice within a number of days from the day of sale. (NOTE: Laws vary from State to State, so it is important to obtain legal advice from a lawyer, in the State in which the property is being sold, regarding any applicable "cooling off" provisions.)
If negotiations between the vendor and the purchaser who submitted the best bid should fail, the vendor is entitled to approach other bidders with a view to negotiating a sale.
Is SLOD! a system of sale by vendor nominated date?
Yes, the vendor can set a closing at any stage during the SLOD! sale process. For example, if the first bid on the property is acceptable to the vendor (for example, see our page on Making A Knock-Out Bid), the vendor may allow a day or more for other interested parties to submit bids.
When the vendor sets a closing date, all bids must be made by that date. The vendor will then consider all bids received, and enter into negotiations with the purchaser who has submitted the best bid.
Is SLOD! safe from dummy bidding?
SLOD! is safer than any of the sale procedures currently in use in the Australian real estate industry, and is particularly safe from dummy bidding. For more information about dummy bidding and how the SLOD! process addresses this problem, see Bidding Integrity FAQ.
Can I use SLOD! anytime?
Yes, SLOD! a allows potential purchasers to submit bids anytime, 24 hours a day, 7 days a week.
What if I want to buy or sell on a weekend or public holiday?
In some States the law provides for a "cooling off" period, allowing a purchaser to cancel a contract unless they have obtained legal advice before signing. (NOTE: Laws vary from State to State, so it is important to obtain legal advice from a lawyer, in the State in which the property is being sold, regarding any applicable "cooling off" provisions.)
Where "cooling off" applies, a contract signed on a weekend cannot be immediately unconditional, and so there is little point in rushing to have contracts prepared.
Furthermore, the "cooling off" option may be eliminated where the purchaser receives legal advice before signing the contract, which means that a sale can be quicker if contracts are NOT signed on a weekend, and the purchaser obtains legal advice on the following Monday.
The SLOD! process encourages purchasers to submit their formal offer through their lawyer so that, where possible, the "cooling off" period is eliminated. This approach also ensures that the purchaser is kept safe by obtaining advice before signing the contract, so that they don't need the "cooling off" option anyway.
A well advised purchaser is more likely to stay committed to their purchaser than one who has been hurried into signing a contract on a weekend when there is no access to legal advice.
Who can us SLOD! to sell their property?
SLOD! has been established for the exclusive use of Lawyers Real Estate. If you would like to sell your property using the superior methods offered by SLOD!, contact a Lawyers Real Estate lawyer.
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