1. Can I terminate the Contract during the Cooling Off Period and if so, what are the consequences?
The Cooling Off Period is the period during which you can terminate the Contract for any reason. However, the Seller may charge a penalty of 0.25% of the Purchase Price which is normally taken from the Deposit.
2. What is Transfer Duty?
Transfer Duty, also known as Stamp Duty, is a tax imposed by the State Government on the purchase of a Property which is payable by the Buyer. The amount payable is determined by the Purchase Price of the Property along with any concession you may be entitled to. In Queensland, you may be entitled to a First Home Concession, Home Concession or a First Home Vacant Land Concession.
3. What happens at Settlement and do I need to attend?
At Settlement, the representatives of the Buyer and Seller along with their banks attend. You do not need to attend Settlement but you are more than welcome to attend.
At Settlement, the Seller will discharge any mortgages the Seller has with their Financier and deliver all necessary documents to the Buyer’s Representative. The Buyer’s Representative ensures that the documents are correct and then deliver’s them to the Buyer’s Financier who advances the funds to complete the Purchase.
Once all parties are satisfied with the documents, the matter is settled. We then contact the Real Estate Agent to authorise the release of the deposit to the Seller and the keys to the Buyer.
4. What happens if I cannot settle on the Settlement Date?
If you cannot settle on the Settlement Date we can request an extension of time from the Seller’s Representative. Depending on the situation, the Seller may grant the extension without penalty or grant the extension on the basis that you are liable for Default Interest on the balance of the Purchase Price or their additional legal fees as a result of the delay.
If the Seller is not agreeable to the extension request, and you cannot settle on the Settlement Date, you will be in breach of contract entitling the Seller to your deposit and also being sued for damages or specific performance.
5. I have received the Building and Pest Inspection Report and want to negotiate with the Seller. Is this possible?
You may negotiate with the Seller to fix issues identified in the report at the Seller’s own cost prior to Settlement or ask for a reduction of the Purchase Price to take into account the cost of fixing the issues yourself.
Due to the time spent negotiating Building and Pest matters, we recommend that you obtain the Building and Pest Report and inform us of any issues as early as possible.
6. Who notifies the authorities that I have purchased a Property?
After Settlement, the Transfer Documents are lodged at the Titles Office to officially record the change in ownership of the Property. This is normally performed by your financier or by us if you are not obtaining finance for the Purchase. The Titles Office then notifies all authorities about the change in ownership of the Property. This process can take up to 30 days so we recommend that you follow up with your financier to ensure that all documents have been lodged.
7. What are Settlement Adjustments?
Rates, water usage, body corporate levies and sometimes rent are adjusted on the Settlement Statement to account for each party’s share of the fees. Also, if there are any outstanding amounts, we ensure that they are paid at Settlement accordingly.
8. When should I obtain insurance for the Property?
We recommend that you obtain insurance as soon as possible as the Property is at your risk from the date of Contract.
9. I have some concerns with the Property. Are there any searches I can order?
We will provide you with a list of searches that you can order in relation to the Property. It is important that you inform us of any concerns that you have with the Property so we can order the relevant searches as soon as possible as some searches take up to 10 business days to process.
10. Do I need to conduct a Building and Pest Inspection?
We recommend that you conduct an inspection to identify any structural problems or defects with the Property. If the Contract is subject to a Building and Pest Inspection, and the report reveals significant structural problems or defects then you may terminate the Contract and your deposit will be refunded to you.