Conveyancing is a lengthy process that requires specialised expertise to avoid possible pitfalls, issues and delays. The purchase of any property, whether it be a unit, vacant land or an established dwelling involves conveyancing. With the right legal assistance, you will navigate the process more smoothly. When an offer has been made, and a contract is ready for review, here are just a couple of things you may expect to see:
Conditions You Should Expect in a Common Contract
1. Financial Approval
- If you are obtaining Finance to purchase your property, you should ask for, or expect to see, a Finance condition in the contract. A finance condition will allow you to terminate the contract and receive your deposit back in full should you be unable to obtain finance within a specified timeframe. Note that where your contract is a standard REIQ contract you are required to take all reasonable steps to obtain Finance approval. This would involve: Using all time available to you (this means not terminating before Finance is due;
- Attempting to obtain approval from multiple banks/financiers; and
- Meeting with a broker.
Despite this reasonableness requirement, you are not required to prove to the vendor that your Finance has been rejected. Conversely, ADL contracts will require you to prove to the vendor that your Finance has been rejected before terminating the contract. This means that the ADL contract favours sellers more than buyers with respect to Finance.
2. Due Diligence
A Due Diligence condition is effectively a get out of jail free card from a contract. The condition, if drafted correctly, would enable a buyer to terminate a contract at their absolute discretion without being required to present reasons to a seller. The Due Diligence condition is not considered a standard condition in Queensland purchasers, however, if you engage a conveyancer, they may be able to negotiate to insert this powerful clause into your contract. Once this condition is in your contract, you can confidently sign knowing that you will have the opportunity to conduct searches and investigations over the property and have a right to back out if you are not satisfied with the results.
3. Cooling Off Period
Unless an exception applies every contract for the sale of property in Queensland will be subject to a 5-business day cooling-off period where the buyer can terminate the contract for any reason. If the buyer elects to terminate under cooling-off, then the seller may, but is not required to, charge 0.25% of the purchase price as a penalty. If a seller wishes to avoid cooling-off, they can require the buyer to sign a cooling-off waiver or sell the property at auction.
Buying a house is a challenging process, and conveyancing can be physically and emotionally draining. But by going through the right conveyancer, we can save you trouble, heartache and stress in your transaction.
If you’re hoping to buy a home in the Redland Bay area, then you will need the best conveyancing lawyers. Bickell & Mackenzie is a reputable family-owned law firm that has served the community. We have expertise in conveyancing and many other fields of law. Call us today!