Buying a house is a big decision and a big transaction, it needs to be governed by a contract
Whether you are buying your first home in Queensland or your fifth, you need to be aware of the property buying process and real estate Contracts or you might find yourself in a lot of trouble.
Contracts can be scary, We are here to help
Before we discuss contracts of sale, we need to explain the concept of “caveat emptor”. This is a Latin term that translates as “let the buyer beware”. It applies to the sale of real property.
Other than misleading conduct or the vendor failing to provide statutory information, the responsibility lies solely with the buyer to do their own research. This is vastly different to New South Wales and Victoria where there is a great deal of mandatory seller disclosure.
This is why it’s so important to have an independent Buyer’s Agent on your side to assess all aspects of the property and a reliable experienced solicitor to review the Contract – so you don’t miss anything!
The Contract process is just a small part of the overall Due Diligence you should be conducting on a property before you make an offer.
We work with all our clients to ensure there are no traps or pitfalls.
Properties can be purchased through four basic methods of sale – private treaty, auction, tender or expression of interest.
The majority of offers to purchase properties are done on standard form contracts produced by the REIQ in conjunction with the Queensland Law Society or ADL (depending on the version the selling agent uses).
An offer does not become legally binding until the buyer and vendor agree to all conditions on the Contract of Sale including purchase price, deposit, settlement date and conditions such as finance approval, building & pest inspection and other special conditions that are appropriate to protect your interests.
When you make an offer to purchase, the contract of sale is presented to the vendor by their agent when an offer is made to purchase a property. The offer may be accepted by the vendor, rejected by the vendor or counter signed by the vendor. And that contract might go back and forth a few times before agreement is reached.
In Queensland, agreement is reached on the price and conditions (called “Contract Formation”). Once the contract is formed the seller cannot sell the property to any other buyer, but the buyer can terminate the contract under one of their contract conditions.
The purchaser conducts their specific investigations during the “Conditional Period” of the contract. Once the conditions are satisfied the contract becomes “Unconditional”.
But this is not the time to celebrate! There is still a lot of work to do during this Conditional period to make sure you know everything about the property.
| Talk to our experienced Buyer’s Agents today and let us help you to make the most of your purchase by ensuring the Contract covers all of your risks BEFORE you sign it. If you don’t get the Contract right before it is signed, then you may end up buying a lemon or losing your dream home. |
| In QLD the agent prepares the Contract but they cannot give you advice. You must get independent advice about what Contract Conditions to add in as many will be unique to the property you are buying. |
Want to know more? Click Here to find out more about how our experienced Buyer’s Agents can help you. Or call us or send an email to receive more information.
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Enquiries@propertypursuit.com.au |
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1300 726604 or +61 7 3177 3399 |
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