Common legal mistakes by Buyers of residential Real Estate in Queensland

by Andrew Lind on February 10, 2009

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Our Conveyance paralegals and property law solicitors have put together this list of common mistakes they see buyers of residential real estate in Queensland making.

1. Not making the Contract subject to the sale of your existing home

 

 Not just “sale” & should be subject to a satisfactory settlement of the sale of your existing home

 For buyer’s benefit only – special condition should say this & you may want to waive it and get bridging finance so that you don’t loose the property

2. Not enough time for building and pest inspections

 

 Time for searches of building records with the Council

 Your building inspector does not check this. We need to.

 

3. Not doing searches before the Contract is unconditional

 

 There are very limited rights under standard Contracts if a problem comes to light after the Contract is unconditional.

 

4. The finance clause not being properly completed

 

 If it is not properly completed, the Contract is not subject to finance. Ask us to check the Contract before you sign it.

 

5. Cooling-off termination costs


 Termination under the cooling-off period attracts a penalty (payable by the Buyer) of 0.25% of the purchase price.

 

6. Not insuring the property

 Generally risk moves to the Buyer from the day after the Contract is signed. If the property burns down between Contract and Settlement the Buyer still has to settle and claim on insurance to rebuild.

 

7.  Buying in the wrong name

 

 The time to consider whose name to buy the property in is before you sign the Contract. Changing it later always attracts extra costs (and possibly double Stamp Duty and Capital Gains Tax). Take our advice before you sign.

 

8. The Seller must clean up the place

 

 The Seller is not clearly obliged to leave the property clean or remove rubbish before Settlement. This will need to be dealt with in a Special Condition.

9. I can extend the Settlement Date later

Wrong. This is subject to the agreement of the Seller which the Seller can refuse regardless of what the agent may have said to you.

10. I can use the finance clause to get out of the Contract

You can only do so if you have promptly made an application for finance and made all reasonable endeavours to pursue that application and then do not have a finance approval by the finance date.

11. Time is of the essence

In Queensland (unlike other States) “time is of the essence” in property transactions which means that if time limits are not strictly complied with you can lose legal rights or have rights of the other party exercised against you.

The solution: engage our expert Conveyance paralegals and Property Lawyers early before you sign a Contract to avoid these mistakes and to carefully lead you step by step through the conveyancing process.

{ 57 comments… read them below or add one }

Emily February 23, 2011 at 12:08 pm

Hi,
I have recently seperated from my husband, he has moved out and left me with our two children. I do not have fulltime employment, but I do recieve money from the government. He has stopped paying the mortgage and left it to me to pay them. I am wondering is there a way to remove my husbands name from the home loan and deeds without refinancing? There is no way the bank would give me the money to cover the mortgage, but I am doing ok paying them at the moment.

Thanks!

Lorna March 3, 2011 at 3:34 pm

Our house is in my husbands name only. If he was to pass away or we were to divorce would I be entitled to half of the property? We have been married for 35 years and I have been working all that time. He has a Will and has left everything to the children.

Andrew Lind March 8, 2011 at 3:53 pm

I recommend that you and your husband take some specific family law advice now in an effort to come an agreement as to how the property be dealt with during your lifetimes and on your husband’s death. Ultimately this will be much more cost effective than a protracted legal dispute.

Andrew Lind March 8, 2011 at 4:00 pm

Removing your husband’s name from the title, loan and mortgage will be considered a refinance by your bank. You may want consider asking your husband to go guarantor. I recommend that you take some specific family law advice.

Andrew Lind March 8, 2011 at 4:07 pm

I assume that the title is in your joint names as well. Your partner needs to agree to transfer his share to you. You will need a lawyer to help you with this. This will then allow you to refinance.

Whether your partner has a claim later is somthing you will need specific family law advice on.

Andrew Lind March 8, 2011 at 4:17 pm

I can only comment of Queensland. At Least a Form 1 transfer (and Form 24) is required for registration of the change of ownership with the Titles Office. The transfer will need to be stamped by the Duties office. If it is a related party transaction you will need evidence of market value for transfer (stamp) duty purposes. If the property is Mortgaged the bank will need to agree. An original copy of the Trust Deed would also be required. Tax, duty and asset protection issues should be considered and advised on. Contact our Client Services Manager for a quote if we can help.

Andrew Lind March 10, 2011 at 5:15 pm

State Revenue concessions are often provided on conditions that the property continues to be your principal place of residence for a minimum period of time. Without responding to the specifics of your question I simply suggest:

- firstly you speak to the lawyer who helped you on the original conveyance;
- if there is no help there then try and speak with the Office of State Revenue directly after considering whether there may be an answer for you on their web site.

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