Real Estate Sales

The REIQ Contract of Sale used to buy real estate in Queensland incorporates the following:

bullet“Reference Schedule” comprising the first two pages where relevant details of the sale are recorded; bullet“Terms of Contract” which are the remaining pages of printed clauses which are incorporated into the contract.

Even though this contract was approved by the REIQ and the Queensland Law Society, it is important that you are aware of the following points when selling.

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Things You Need To Know About Real Estate Sales

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Cooling-off

All contracts for the purchase of residential land in Queensland (excluding those signed at auction) have a built-in five business day cooling-off period which commences on the first business day the Buyer receives the contract signed by all Sellers and Buyers. If the Buyer uses this cooling-off protection, the Seller is entitled to retain from any deposit paid .25% of the price as compensation.

Insurance

Upon signing the contract, risk of the property passes to the Buyer at 5 p.m. one business day after the contract date. You would be wise to keep up insurance on the property from the date of the contract until settlement in case the property was damaged or destroyed and it was later discovered the Buyer did not take out insurance after the Contract was signed.

“Time of the essence”

Once each party receives a signed copy of the contract and the cooling-off period has expired, each party is bound by any time limits contained in the contract e.g. finance approval, Settlement Date. Failure by one party to strictly observe these time limits may result in the other party being able to terminate and sue for damages !!

Inclusions and Exclusions

The law makes a distinction between fixtures and chattels, with the sale price usually including fixtures but not chattels. Fixtures are structures secured either to the land itself (e.g. sheds bolted into concrete slabs, constructed BBQ’s, statutes or stone garden seats) or secured to buildings secured to the land (e.g. built-in dishwashers, alarms and vacumaids). Chattels, therefore, are generally movable items.

To avoid any uncertainty, the Contract Reference Schedule provides a section called “Excluded Fixtures / Included Chattels” where the parties can specify those items which are included in or excluded from the sale price. “Excluded Fixtures” can be removed by the Seller at settlement and “Included Chattels” remain with the Buyer.

Vacant Possession

The Contract provides the Seller will give the Buyer vacant possession at the time of settlement. As most settlements take place from 2 p.m. onwards, you must have completely vacated the property by the agreed time of settlement.

Mortgage Release

Should there exist a mortgage on your title deed at the time the contract was signed, you should immediately advise your bank your property has been sold and request they prepare necessary “Mortgage/Security Release” papers and a loan payout figure calculated to the settlement date.

Rates

As the settlement date often falls during the period rates are charged (which is commonly three or twelve months), rates are usually apportioned between yourself and the Buyer on the settlement date. You are responsible for rates from the start of the rates period until the settlement date. The Buyer is responsible for rates from the settlement date until the end of the rates period. If the rates are unpaid at completion, your portion is deducted from the purchase price with the Buyer then being solely responsible for the entire amount of rates after settlement. If the rates have been paid by yourself before settlement, the portion of paid rates from settlement to the end of the rates period is added to the purchase price as the Buyer will not have to pay any more rates until the next rates period.

Telephone and Electricity

Don’t forget to arrange for your accounts to be read on the settlement date and transferred to your next property.

Change of Address
  1. Drivers licence – the Traffic Act of Queensland requires a licence holder to notify Queensland Transport within 28 days of change of address with the new address being endorsed on the back of the licence;
  2. Mail – for a small fee, Australia Post will redirect mail to a new address;
  3. Bank and credit card statements – as these are regularly mailed out, don’t forget to notify the relevant financial institutions as soon as possible;
  4. Creditors – if you are making repayments on a loan, it is important to keep the lender advised of any change of address as any default notices and statements are sent to the borrowers last known address.
Pre-settlement inspection

The Contact allows the Buyer the right to one inspection of the property prior to the settlement date to check it’s state of repair.

Keys

The keys are usually delivered to the agent on the settlement date.

Legal Assistance

Once the contract is signed, please contact us to make an appointment with us so we can peruse the contract and advise you of our fixed fees.

Our fixed-fees also include a life-time of free initial advice on any subsequent purchase, sale, or mortgage of real estate by you or your immediate family….a valuable benefit which you can use at any time.

We promise to deliver you top service at a value you’ll be delighted with… guaranteed!

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