LOSING A DEPOSIT WHEN BUYING PROPERTY
The REIQ has now introduced changes to the standard House and Land contract in Queensland to include terms that permit both the Buyer and Seller to extend settlement deadlines by 5 business days if they are delayed by their bank.
Through the steps of buying a new home your Conveyancing Solicitors will help you understand the finance conditions of the contract so that you are prepared in advance for each term to be satisfied by the dates signed upon. Previously if your financier was not ready to provide funds on the day of settlement a request for an extension to settlement was made but only approved if agreed upon by all parties in writing.
In the case where the bank was not ready to provide funds on the date of settlement the Buyer would be considered in breach of the terms of the contract and financially liable. Under these terms the selling party was able to legally terminate the contract and collect the Buyer’s deposit. In addition the Seller could sue the Buyer for any loss or damages on the resale of the property.
With the new change made by the REIQ both the Buyer and the Seller are now able to extend the settlement deadline by 5 business days without written approval by all parties.
It is however still possible when buying a home to lose your deposit if you are in breach of contract. Conveyancing terms and conditions require the guidance of a legal professional to be sure your rights are protected and that your settlement is successful.
Here are five important details to discuss with your Conveyancing Solicitors when you are signing a contract:
the negotiation of a deposit amount in addition to the purchase price of the property
at what date your deposit is due to be paid
where the deposit is held before settlement is finalised; in some cases it remains in the trust account of the Agent conducting the sale
if you are requiring finance the steps you will need to take to obtain finance approval by your bank
the finance terms and conditions agreed upon before the contract is signed by the Seller and Buyer
Our Conveyancing Solicitors can help you check if you are covered by the new REIQ provisions and confirm if you have the current editions of the REIQ contract:
The Seventh Edition is the current REIQ contract for Houses and Residential Land.
The Thirteenth Edition is the current REIQ contract for Residential Lots in Community Title Schemes.
Horrocks Solicitors are Brisbane’s must trusted conveyancing experts with over 30 years of legal expertise. If you’re selling or buying property in Queensland contact our conveyancing team for a free fixed price quote for your new contract.