What Should I Consider Before Signing A Contract?
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It’s such an exciting day when you finally find the house of your dreams in Cairns. But it’s worthwhile taking some time to get everything right when it comes to signing the contract of sale.
This is where the services of conveyancing lawyers can be of assistance, making sure that the contract reflects your individual specifications before you sign on the dotted line. It is important to remember that it is a legally binding contract and you should meet all your obligations concerning the law so that you don’t find yourself facing penalties and potentially being out of pocket.
So what are the main things to take into consideration before you sign?
Buying Entity – Is it Correct?
It is vital to make sure that this is listed correctly on the contract. As an individual buying a property, make sure that you have used your full name, including any middle names.
If you are applying for a home loan, the bank will use the full legal name listed on the mortgage documents, so it is critical that it is identical to the details on the contract, otherwise, your finance application could be slowed down while the error is fixed.
If you are buying property as a company, make sure that the correct spelling of the business name has been used.
Standard Contract Conditions
In Queensland, a standard contract will include two main conditions by default:
- Building and pest condition
- Finance condition
These must be correctly set out in the contract before you sign.
Make sure to leave plenty of time to arrange the building and pest inspection and for the report to be returned and reviewed. The due date for this should be recorded on the contract. If any issues arise from this, your lawyer or conveyancer will negotiate with the seller’s, and this will require adequate time.
In most cases, the buyer has to secure finance to pay for the property before the purchase can be completed in full.
Most of the banks need a minimum fourteen days from contract date for unconditional approval of a loan, even if it has been pre-approved. There will have to be a property valuation which may hold things up.
Time also must be allowed for the conveyancing lawyers to carry out searches on the property once the sale is unconditional. These need to be returned in advance of the settlement date. The results of these searches can take as long as fourteen days to be completed.
Your lawyers may have to undertake the searches before the contract goes unconditional, but in this case, you risk being liable for legal costs if the contract is terminated for some reason (e.g. finance not being approved).
Addition of Special Conditions
This is one of the most important services of a conveyancing lawyer. They will work with you to draft any special conditions and add them to the contract before signing.
An example of these special conditions might be additional searches that are required, or you may stipulate that you are buying the property subject to the sale of your current home.
Experienced lawyers will make sure that these are drafted correctly following the law and represent your particular requirements.
If you need advice about conveyancing, the law, and the sales process, Cairns Conveyancing Solicitors can help. Contact us today to find out more about our services in Cairns and arrange a no-obligation consultation.
Cairns Conveyancing Solicitors is part of the Preston Law Group and is locally owned and operated.