Don’t sign an REIQ contract unless we see it first!
Our firm has been thriving for nearly 30 years, and commonly some of the problems that we see in our firm from time to time are created by people who have entered into contracts without understanding what the fine print in a contract really covers; without truly understanding the effect of the particular standard contract conditions.
Let’s examine this in detail, your standard REIQ and QLS approved contracts for the purchase of your house or investment property.
Let’s say, for example, that you found the house of your dreams, after doing much searching with a real estate agent, and your agent tells you to sign an offer. Because it’s not a contract until both parties sign, you are not bound to a document until it’s a contract.
But what does that really mean? In Queensland we don’t have a system of exchange when buying property, so when you sign an REIQ standard contract and deliver it back to the agent, what you are saying to the agent is “that’s my offer.” So what you need to understand is that once the seller counter signs that same contract document, it is then a binding contract!
Being a binding contract means that you are not at liberty to terminate it, or vary or amend it without the seller’s permission. So that’s the first thing you need to be careful of.
The other major aspect of what you have signed is understanding what is in the fine print, and over our series of conveyancing blogs I will try and help explain to you some of the misconceptions that are so evident and readily misunderstood in the market place.
There are many things that we would have thought would be covered. Let’s say for example, if we refer back to the 2011 floods, you might be surprised to know that if you purchased a house in that flood area, there is no protection for you in the standard REIQ if the property floods.
The reason for this is the following:
the contract is designed to give you title to that property, but it doesn’t make any statement or promise as to the quality of that particular property. So if that’s not really important to you, if for example it is absolutely imperative that you would not buy that house if it flooded, the you need to put a special condition in the contract to protect yourself.
Our clients understand that that the cheapest part of any legal transaction is at the front end, so get our advice on the contract BEFORE you sign it.
Contact our Property Team at 1300 HATZIS (1300 428 947) to have a look at any contract you have.
Any clients of ours will be gifted a FREE perusal of the contract if it is an REIQ contract and we will even send a fax to the agent with any important recommendations once you have approved it.