Making sure you get your contract right the first time

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Making sure you get your contract right the first time

Commonly some of the problems we see home buyers make are those created by clients, whether living in Forest Lake, West End or Sunnybank Hills, in fact living anywhere in Brisbane, who enter into contracts or offers to purchase and do not understanding what the fine print really says and not understanding how to protect themselves when they sign an offer to lease or letter of intent.

First things first, in Queensland we do not have a system of exchange like other states in the country when buying a property. When you sign an REIQ contract and deliver it back to your real estate agent, although you are not bound to that contract until both parties sign, that is as good as saying “this is my final offer.”

This means that as soon as the seller of the property signs the contract you are no longer at liberty to make any alterations without the seller’s permission because a contract was formed when the seller signed it and accepted your offer.

Secondly, understanding what is in the fine print of a legal document is a dilemma for a lot of home buyers. One common misconception with standard REIQ contracts that people assume that they are able to terminate the contract if there is found to be a fault with the house.

The standard REIQ contracts do not mention anything regarding the quality of the house and so it is not a condition of the contract.

Bear in mind the following:

  • the contract is designed to give you title to that property but it doesn’t make any promises as to the quality of that property. 
  • so if the quality of the property is really important to you, for example, if it’s absolutely imperative that you would not buy a house if it flooded then you will need to put a special condition into the contract.

Our clients who utilise our conveyancing services get a free perusal of the REIQ contract BEFORE they sign, and we will even send a fax to the agent recommending some changes once you’ve approved it, so take advantage of that service.

That can in fact be the most important part of your conveyancing transaction that started before you even should sign the contract.

If you are looking at buying a property in the near future, or would simply like more information on the topic,
feel free to contact or call 1300 HATZIS (1300 428 947).