When buying a property, there are a number of legal issues that have to be negotiated including the Contract of Sale and conveyancing.
The Contract of Sale
The Contract of Sale is presented to a buyer when an offer is made on a property for sale, and subsequently accepted by the seller. At this stage, it is important that buyers seek independent legal advice - a licensed solicitor will be able to advise you on any conditions of the sale and/or take the appropriate steps to include conditions that you want made. For example, most buyers make the sale subject to building and pest inspections.
The REIQ Standard House and Land Contract has been prepared in accordance with the Property Agents and Motor Dealers Act 2000 and in conjunction with the Law Society of Queensland, and is commonly used among real estate agents around Queensland. A sample copy of the REIQ Standard House and Residential Land Contract is available for buyers who wish to familiarise themselves with a Contract of Sale before beginning their real estate transaction.
In the case of a property sold through auction it is important to get a copy of the contract before the property goes to auction. Properties sold 'under the fall of hammer' are unconditional, and therefore definite. A solicitor will be able to advise you on conditions of the Contract of Sale before you begin bidding on the property.
Tip: on the day of the auction, make sure there are no late changes to the contract you were given by checking with the auctioneer.
Conveyancing
Conveyancing is the legal transfer of a property's title from the seller to the buyer. Queenslanders have the choice of employing a solicitor to handle the conveyance or doing the job themselves.
When using a DIY kit, buyers or sellers take on the risks of costly and/or time consuming mistakes such as missing a contract deadline or failing to make appropriate adjustments at settlement.
Experience shows that a high proportion of those people who set out to handle their own conveyancing strike problems in the process. They may end up seeking professional legal advice that can cost as much as, or more, than the original conveyancing charges they sought to avoid.
Using a licensed solicitor often saves time on paperwork such as title searches and stamp duty and can also provide peace of mind when you may be making the largest single financial transaction of your life.
Whether you use a solicitor or decide to do-it-yourself, conveyancing still incurs costs such as searches of the Titles office, certificates of rates, zoning, stamp duty and registration fees. Searches of zoning, and Titles will determine whether the property has any restrictions such as adverse planning, demolition orders, outstanding taxes linked to it, or encumbrances on Title such as easements.
The REIQ strongly recommends that buyers and sellers avoid the risks associated with do-it-yourself conveyancing and use the services of a solicitor in property matters.
