Thinking of putting in an offer to purchase your new home? Here are a few tips to ensure you come out smiling.
1. The standard purchase of sale of a residential property in Queensland is usually on a standard Real Estate Institute of Queensland (REIQ) contract. Whilst these contracts contain standards terms, it is always best practice to have your Solicitor or Conveyancer look over the contract prior to signing, to ensure that it has been filled in correctly and it is completed with your best interest at stake – especially if there are any special conditions included in the contract.
2. Even if you have spoken to the Selling agent and put up a verbal offer to purchase the property, nothing is final and binding until it is written down and signed by both parties on an official contract.
3. Are there any included or excluded chattels that accompany the sale of the property? Chattels and Fixture can often be confused, and both can feature in a contract when purchasing a house.
To explain the difference:
- A fixture is legally considered something such as equipment or appliances that have been attached or fixed permanently to the house.
- Fixtures are regarded as part of the property, and it is a given that they will go to the buyer along with the rest of the property.
- Chattels are items that are not permanently fixed to the property and can be removed.
- At times there is definitely a fine line between the two and buyers need to get good advice as it is easy to find yourself disappointed when it comes to the pre-settlement inspection, only to realise that the beautiful plant in the urn at the front door was not coming with the sale of the property.
- If you are interested in retaining some of the chattels seen in the property during the open inspections, then you need to clearly identify them in the contract.
4. Conditions to purchase the property.
Do you need to arrange finance, conduct building and pest inspections or do further due diligence on the property? These are all conditions upon which the Seller can either accept or refuse your offer. As one of Brisbane’s leading Buyer’s Agents we always ensure that our Buyers are in the best position to buy the property when we go to contract. Therefore, we always advise our clients to complete any inspections and due diligence, as much as possible, prior to submitting their offer. This makes the contract as clean, or free of conditions as possible, and that always makes the Seller happier and more open to accepting your offer or to negotiate further. Having a Buyer’s Agent working for you, will always put you in a strong, confident and educated position, enabling you to have your new property sooner.
HOWEVER, IN AN AUCTION SITUATION – THERE IS NO COOLING OFF PERIOD.
5. Cooling off is a period of 5 business days from the day that you receive the fully signed (by both parties) contract. If you receive the contract on a weekend, then your 5 days of Cooling off begins on the next Business day. During this time the Buyer has the option of exiting the contract, without explanation. After 5pm on the 5th business day, you are then committed to going ahead with the sale. Keeping in mind that it is also the right of the Seller to retain a penalty of 0.25% of the purchase price from the deposit paid.
6. How much deposit should you put down? The standard practice in Queensland is that the deposit is paid in two lots. The initial deposit of a nominal amount at the time when the Buyer signs the contract, with the Balance of the Deposit paid when the contract goes unconditional.
Generally, 5-10% of the purchase price is considered normal and the higher amount is always deemed as a strong act of good faith by the purchaser, that they intend to honour the contract.
7. Location One Buyer’s Agency always encourage our clients to take out appropriate insurance over the property as soon as both parties have signed the contract. Even though the property is still in the Seller’s name it is always best practice to cover and protect your asset, especially if something happens to the property and the Seller doesn’t have insurance.
Location One places our clients in the strongest, safest and most secure position when it comes to buying good property at good prices. We do all the hard work for you, ensuring that you can reap the rewards, both now and into the future. Let us help you find your next home or investment property, without all of the stress, frustration, and uncertainty.
Our website, www.locationone.com.au has more information about our services, or give us a call and organise an obligation free chat about how we can help you on 07 3262 5311.