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PRE-CONTRACTUAL STAGE – SELLER INTRODUCTION The Four Stages of a Conveyancing Transaction – Part 1 Sellers: Pre-Contractual; Conditional; Unconditional; and Settlement/Post Settlement. Each of these stages offers its own risks. PRE-CONTRACTUAL STAGE The importance of this stage, which occurs before the signing of a contract, is often overlooked with clients signing the “standard” Real Estate […]
The Four Stages of a Conveyancing Transaction – Part 1 Sellers:
Each of these stages offers its own risks.
The importance of this stage, which occurs before the signing of a contract, is often overlooked with clients signing the “standard” Real Estate Institute of Queensland (REIQ) contract without really reading the document fully. Brisbane Property Conveyancing requires expert care to get right.
A standard REIQ contract can be divided into the following parts –
This part covers important details such as:
Yet you would be surprised how many errors we find when we receive contracts signed by clients – this is an important legal document but common errors include:
Next are three key matters – the Finance and the Building and Pest Inspection dates and terms and the Matters Affecting the Property.
The Finance Condition sets out whether the contract is subject to finance, whether the buyer is free to seek finance from any financial institution, what finance amount is required to meet the condition, and when the Finance Date is due.
Please note that the standard REIQ contract specifies that unless Finance Amount, Financier, and Finance Date are all completed then the contract is NOT “subject to finance” and failure to be able to pay for the purchase is not a ground for termination.
The Building and Pest Condition set out when the inspection is to be performed and again it is important to note that if the Inspection Date is NOT “subject to Building and Pest” and issues that would be covered by such an inspection are not grounds for termination.
The Matters Affecting Property provides the place where the seller of the property is able to disclose:
The Reference Schedule then shows details of compliance with Pool Safety, Electrical Safety Switch, and Smoke Alarm requirements.
Finally, the Reference Schedule shows any Special Conditions that apply to the contract.
This is the ‘fine print’ of the contract and in an article of this size, we cannot provide a detailed commentary on each term. However, here are some key terms of which you should be aware:
Selling a House will for most people be the most important financial decision that they make so we cannot recommend highly enough the importance of reading the contract fully and ensuring that you satisfy yourself on all matters before you sign the contract.
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The Four Stages of a Conveyancing Transaction – Part 2 Sellers