Our Conveyancing Brisbane team (Lawyers & Paralegal Conveyancers) have put together an updated list some common mistakes they see in the sale of Queensland real estate.
1. Accepting a small deposit – you should ask for a considerable deposit as this can be retained if the buyer is in breach (and shows that the buyer is serious) HOWEVER not more than 10% because this would then become an Instalment Contract (extra 30 days further for settlement etc.)
2. PAMDA non-compliance – Warning Statement and Contract not prepared and delivered correctly – purchaser may have right to terminate right up to day of settlement
3. Tenancy non-disclosure – Forgetting to make contract subject to tenancy if there are existing tenants who are remaining after settlement
4. Encumbrance non-disclosure – Not disclosing on contract if there are any easements, notices issued or orders (eg Contaminated Land), may give buyer right to terminate
5. Your bank not being ready – Not advising your lender (releasing bank) to prepare documents in time for settlement – banks can take two weeks to be ready to settle, buyer usually has right to terminate if you are not ready on time. You should be especially careful of break-costs associated with fixed rate home loans and ask you bank for an estimate of these costs before you sign a contract of sale.
6. Non release of company charges – If the seller is a company, not arranging for Release of Company Charge (if one exists) to be handed over at settlement
7. Original Certificate of Title has been mislaid – cannot settle without presenting this document if paper title has issued
8. Release of Mortgage has been lost – Bank loan has been paid out and original release of mortgage given to you but you have mislaid it
9. Disclosure Statement non-compliance – If selling a unit or town house, not providing a correct disclosure statement
It makes good sense to ask our Conveyancing team (Lawyers & Paralegal Conveyancers) to check your Contract before you sign a sale contract.
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