Real estate contract clauses Qld: What you should know before signing the dotted line
When it comes to buying or selling a property in Queensland, it`s essential to understand the various clauses that make up a real estate contract. These clauses are legally binding, and failing to comprehend them before signing on the dotted line can result in costly mistakes. In this article, we`ll explore some of the most important real estate contract clauses Qld buyers and sellers should know.
1. Purchase Price
The purchase price clause is the most critical aspect of a real estate contract. It outlines the agreed-upon amount that the buyer will pay the seller to purchase the property. It should be clear, concise, and include any additional costs, such as stamp duty or legal fees.
2. Settlement Date
The settlement date clause is the date on which the buyer must complete the purchase of the property. This clause outlines the time frame in which the buyer must pay the purchase price and take possession of the property. It`s crucial to ensure that the settlement date is reasonable and achievable for both parties.
3. Deposit
The deposit clause outlines the amount of money the buyer must pay upfront as a sign of good faith. The deposit is usually 10% of the purchase price and is held in trust until the settlement date. If the buyer fails to complete the purchase, the seller can usually keep the deposit.
4. Special Conditions
Special conditions are clauses that can be added to a contract to address specific needs or concerns of either party. These clauses can include things like building and pest inspections or finance clauses. It`s essential to include any necessary special conditions in the contract to avoid any complications or disputes later on.
5. Cooling-Off Period
A cooling-off period clause gives the buyer a certain amount of time (usually five business days) to back out of the contract without penalty. During this time, the buyer can conduct further inspections or change their mind about purchasing the property for any reason. However, if the buyer decides to back out, they will usually forfeit a percentage of the deposit.
6. Title
The title clause outlines whether the property is being sold with a clear title or subject to any encumbrances, such as mortgages or liens. It`s crucial to ensure that the title is clear before signing the contract, as any encumbrances can affect the buyer`s ability to obtain financing and take possession of the property.
Understanding these essential real estate contract clauses can help buyers and sellers avoid common mistakes and protect their interests. However, it`s always a good idea to seek the advice of a professional before signing any contract. A qualified real estate agent or lawyer can ensure that the contract meets all legal requirements and protect your interests throughout the transaction.