Our Conveyancing Brisbane team (Lawyers & Paralegal conveyancers) report:
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 – you may want to waive it and get bridging finance so that you don’t lose 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 – if you are considering a Queensland Purchase, engage our expert Conveyancing Brisbane Property LawTeam (Lawyers & Paralegal Conveyancers) early before you sign a Contract and to carefully lead you step by step through the conveyancing process.