Whether you are a first time buyer or already own property, there are always issues that can arise in a property purchase. So what are some of the common issues to be on the lookout for?
Owning and living in a home is very different from investing. A home owner can be entitled to a transfer duty concession – but only if it’s in their own name. And land tax can be vastly different between a company owner rather than an individual. So it’s always best to check with your lawyer and accountant before you buy to ensure that you are using the right entity.
“Pre-approval” of finance does not guarantee you the loan will be approved – it merely confirms that you meet the financial requirements for the repayments. A valuation of the property is almost always needed so make sure about this before signing up an unconditional contract.
What comes with the house? Pool equipment? Dishwasher? Furniture? Make sure you make clear what you are intending to buy as most items are excluded unless specifically named in the contract.
Do you need the property to be subject to the sale of your house? Is there a specific issue you need looked at? Allow yourself plenty of time to get these clauses drafted if you need them so you don’t miss out.
Most residential house contracts will have a 5 day cooling off period – but at a price. There is a penalty involved in terminating under the cooling off period so don’t assume there will be no responsibility if you change your mind.
Most contracts are “buyer beware” – meaning that you have to carry out all the searches and satisfy yourself before settling, and the contract doesn’t always protect you (i.e. in case of flooding). So doing a little homework on the area is a good thing. If in doubt, get in contact with on of our expert SPM Law property lawyers.
Changes to REIQ Contracts for Houses and Land coming in January 2022
The Real Estate Institute of Queensland (“REIQ”) and the Queensland Law Society (“QLS”) have announced that the new standard contracts for sales of houses, land and residential units will be released in late January. The changes have been introduced to resolve some issues faced by buyers and sellers when dealing with financial delays to settlement, in addition to updating a number of issues.View All News