26 May 2010
If you’re a first time property buyer, you probably have a few questions running through your mind, that you’re not sure about asking an agent. Here are a few questions that I’ve been asked over the years and some (hopefully) relatively simple answers for you.
Question: When do I sign a contract?
: In Queensland, you sign a contract to confirm your offer on the property you wish to purchase. The contract has to be countersigned by the seller (or Vendor as they’re also known as) for it to be officially accepted. The contract will have a Warning Statement that will be presented to you first (PAMD Form 30c – Warning Statement
) which advises you to seek an independent property valuation and legal advice. You should read the form carefully to understand your rights and obligations.
Question: What happens after I’ve signed the contract?
Answer: The agent will present the offer to the seller, and they will either decline or accept the offer. Declining may open up negotiations on the price and conditions of the contract. If your offer is accepted, the seller will sign the contract and you’ll be asked to pay the applicable deposit.
Question: Can I get out of a contract?
Answer: In Queensland, you have a 5 business day cooling off period in which you can withdraw from the sale. This is not applicable to auction sales. After the cooling off period has ended, a condition of the sale must not be met for the contract to not carry through. If all conditions are met satisfactorily, the contract becomes unconditional and you cannot get out of the contract.
Question: What conditions should I have on a contract?
Answer: The answer depends on the property and your circumstances. Building & pest inspection, finance, and safety switch are all common conditions, however you will need to seek the advice of your agent, lender and solicitor for a specific answer pertaining to you and the property in question.
I’ll post in future blogs some more questions and answers to help buyers. If you have something that you’d like specifically answered though, don’t be shy! You can post a comment, or contact me directly