The most important part of the conveyancing process begins before you even sign the Contract of Sale for the property and it’s something many buyers fail to consider. It’s the simple task of reading the contract in detail and having it reviewed by your solicitor.
Many buyers fail to give this crucial step any consideration, often blinded by the excitement of purchasing a new property. It’s so important though to take the time to carefully read the Contract before signing. We know that people are in the habit of just skimming over the fine print in a mobile phone contract, but when you’re spending hundreds of thousands of dollars on a property it’s well worth spending the extra time to read it.
In Queensland when you sign the Contract and give it back to the real estate agent you will be bound by it as soon as it is signed by the seller. The Contract is effective immediately upon signing by both parties. So it’s important you read the Contract and make yourself familiar with it before signing it.
A problem that occurs often in property law is that there is a misconception amongst people that the standard Contract allows for a buyer to terminate if there is found to be a fault with the property.
The standard Contract in Queensland is the REIQ Contract and it makes no mention of the quality of the property, so there is no provision within the fine print for a buyer to terminate the Contract if a fault is discovered during the conveyancing process. There are sometimes other remedies available, but not termination, which is what a buyer usually wants to do.
The Contract is designed to provide you, as the buyer, with the legal Title to the property, but makes no promises as to the quality of the property. This is why it is so important to have the Contract reviewed by a solicitor prior to signing as they can insert a special condition into the Contract to give you the right of termination in certain circumstances where a fault is found with the property, such as if it is found to be flood prone, or close to a new road that will be built.
At Dylan & Inns Gold Coast and Brisbane we offer a free service to all of our clients to review the Contract for them before they sign it and draft any special conditions that may be required and then pass these onto the Agent.