What should I do if I don’t understand the Contract of Sale?
The REIQ strongly encourages buyers to seek independent legal advice before signing a Contract for Sale.
Issues that need to be understood by the buyer are: the appropriateness of accepting or waiving the five-business day cooling off period, seeking assistance with understanding the State Government forms, the Selling Agent's Disclosure to the Buyer Statement (Form 27b) and the REIQ Contract of Sale. It is recommended that the buyer seek legal advice relating to these forms.
Contact the Queensland Law Society for further details about how to contact a qualified solicitor.
If you wish to make a formal offer on a property, the selling agent will provide you with a PAMD Form 27c Disclosure to Buyer and a Contract of Sale with a Warning Statement attached. At this stage you should also seek advice on whether to waive the cooling-off period.
What’s a Warning Statement (PAMD Form 30c)?
It’s a document designed to:
- inform the buyer of whether a cooling-off period applies;
- advise the buyer of their rights under the contract, including when the cooling-off period starts and ends;
- advise the buyer to seek independent legal advice and a valuation before signing the contract and provide contact details on how to do this;
- inform the buyer that a percentage of deposit (0.25 per cent of the purchase price) may not be refunded if the contract is terminated during the cooling-off period;
- provide special warnings with regard to house and land packages.
Contracts that are entered into without a Warning Statement, or contain a statement that is not in the approved form, will be of no effect.
What happens if I pull out of the Contract?
The buyer may terminate the contract under the cooling off provision within five-business days of signing the contract, as long as they did not waive this right through a PAMD Form 32a Lawyers Certification.
If a buyer terminates a Contract of Sale at any time during the stipulated five-business day period, they will have to pay the seller 0.25% of the property price on the Contract. There is no additional GST payable on this amount.
If the buyer has elected to waive the cooling off period provision they will not incur any cost and consequently cannot terminate a Contract.
There is no cooling-off period in Queensland for properties bought at auction.
