Buying a residential property will be one of the most significant financial transactions you make.
Seek advice before you sign
Whether the property is to be your first home or an investment property it is important that you seek the advice of your Solicitor and in some circumstances, your Accountant, before you sign any Contract. Your Solicitor will review the Contract and ensure that it is correct, meets your needs and no unexpected costs or problems appear. Your Accountant will determine the most appropriate entity to purchase the property having regard to tax, asset protection and succession planning.
Obtaining pre-contractual advice is as simple as arranging for the Real Estate Agent to fax or email over a copy of the proposed Contract to our office and then us contacting you to provide our advices over the phone.
The Property
As the purchase of a residential property is a significant investment, it is wise to do your research before you sign a Contract.
You should consider the location of the property or any other matters affecting the property, including in particular:-
- The zoning, planning and use of the land. In Mackay, residents are able to access the Mackay Regional Council mapping service referred to as MiMAPS. MiMAPS can be used to find aerial photographs, property description, contours and sewer locations. You can access MiMAPS through https://mimaps.mackay.qld.gov.au
- Whether the property is in a flood zone;
- Whether there is likely to be development in the area that may affect the property or any services to the property;
- Whether there are any easements on the property;
- Whether there are any covenants affecting the use of the property;
- Whether the property is subject to any dispute;
- Whether there are any tenants in the property;
- Whether there is a swimming pool and if it complies with pool safety laws.
If you are buying a townhouse or unit, it is important that prior to signing that you carefully consider the By-Laws that apply to the property, the number of units within the Body Corporate, the amount of levies (administrative levies for general maintenance and sinking fund levies for major expenditure) that are payable to the Body Corporate, the amount held in the sinking fund and the condition of the common property.
Cooling Off Period
Whilst it is always our recommendation that you seek advice before signing the Contract, all residential sales in Queensland are subject to a Buyer’s cooling-off period of five (5) business days commencing on the date the Buyer or their Lawyer receive a copy of the Contract signed by both the Seller and the Buyer.
The cooling-off period does not apply to auction sales of residential property. However, if the property is passed in at auction and the Buyer and Seller later negotiate a Contract, then the cooling-off period will apply.
If you decide that you do not wish to proceed with the purchase, you can terminate within the cooling-off period by giving notice in writing to the Seller. You do not need to provide any reasons to the Seller but there is a cost to terminating that is payable to the Seller referred to as the “termination penalty”.
The termination penalty is 0.25% of the purchase price of the property. The importance of obtaining pre-contractual advice is heightened when there is a cost with terminating under the cooling-off period.
If you need assistance with your purchase please contact our office.
