SELLERS CONVEYANCING GUIDE QUEENSLAND
A residential property Contract of Sale is a legally binding agreement between the buyer and the seller and prepared as a legal document signed by all parties.
While the specifics of each sale contract may differ regarding the obligations of both parties, the contract typically includes;
This law is yet to come into effect in Queensland ‘A Seller Disclosure Statement - read our Guide here’
Property address and information
The names and information of both the Vendor and the Purchaser
The Real Estate Agent name and information
The agreed sale price of the property
The deposit amount and the date agreed upon for payment by the buyer
A ‘cooling-off’ period, not all contracts will have a cooling off period
The settlement period of the contract (from the date of the first day the contract is signed by the buyer and the seller to the date of proposed settlement.)
Any agreed upon terms or special conditions that the contract is subject to
A Finance Approval condition if the contract is subject to Finance Approval, whereby the buyer requires funds from a financier to complete the purchase
A Building and Pest inspection condition if the contract is subject to an inspection
It is recommended to have a conveyancer or solicitor draft any special conditions
DO I NEED A CONVEYANCING SOLICITOR TO SELL A HOUSE IN QUEENSLAND?
Legally, you are not required to hire a conveyancer or solicitor to sell your property. However, due to the complexities of real estate and property law, it is wise to seek independent legal advice to ensure a smooth process.
Can I sell my house without using an agent in QLD?
Yes, you can sell your property privately without the help of a real estate agent. However, it's important to understand the steps involved to ensure that the sale is conducted fairly and legally. Make sure you are aware of all the necessary procedures and legal requirements to successfully manage a private sale.
How is the purchase price of a conveyance negotiated in Queensland?
It is common for the buyer and seller to negotiate via the real estate agent before reaching a mutually agreed upon purchase price and any other additional terms or special conditions.
How long is the ‘cooling off period’ for the Seller in Queensland?
In Queensland, the cooling-off period lasts five business days from the day the buyer receives the signed contract. Selling your home in Queensland is a significant decision, and unlike buyers, the Seller does not have a cooling-off period to reconsider.
When is a conveyancing contract of Sale legally binding?
After both the buyer and the seller have signed the conveyancing contract, it becomes a legally binding agreement.
Is a verbal agreement legally binding in conveyancing Qld?
Gazumping occurs when a seller accepts a higher offer for their property even after having verbally agreed to a different offer. This is possible because verbal agreements are not legally binding; a written contract is required for the sale to proceed.
Who prepares the conveyancing Contract of Sale?
The contract of sale is typically drafted by the real estate agent, or by the conveyancer or solicitor acting on behalf of the vendor.
Do I need a pre-contract review before I sign an REIQ contract?
Whilst you do not require a pre-contract review before you sign it is strongly advised to have special conditions prepared by a conveyancer or solicitor, and to always ensure you obtain legal advice before signing any contract. Horrocks Solicitors provide a free contract review before you sign if you email your contract to reception@rivercityconveyancing.com.au
Which information must the Seller disclose to all prospective Buyers?
The seller must disclose any issues that could pose significant risks to the property’s foundation, the safety of the buyer, or the overall integrity of the home. This includes, but is not limited to: water damage and other hazards that might affect the property. The introduction of a Seller’s Disclosure statement is yet to come into effect in Queensland Read more about the Seller disclosure statement here.
Do you owe stamp duty when selling a property in QLD?
In Queensland the Buyer is responsible for paying stamp duty under a standard contract, not the seller. The stamp duty is usually required to be paid within 30 days of the sale’s settlement.
THE CONVEYANCING PROCESS FOR SELLING PROPERTY IN QUEENSLAND
The Contract of Sale is prepared or drafted by a Real Estate Agent, Conveyancing or Solicitor
The contract is signed and dated by both the Vendor and the Purchaser
Once signed the contract is forwarded to both the Buyer and Seller’s respective conveyancers or conveyancing solicitors
Your conveyancer will reach out to you to formally confirm their appointment to represent you in your sale or purchase.
The contract of sale proceeds and each of the conditions of the contract must be deemed satisfactory by the Buyer and the Seller for the settlement to continue.
Contracts of Sale are usually subject to the following conditions (but may include additional special conditions included before signing into the contract): Cooling off Period, Finance Condition, Building and Pest Condition, and any additional Special Conditions.
When all conditions in the contract have been met, it becomes unconditional, and both parties are legally obligated to move forward with the settlement.
Date of Settlement is confirmed and settlement figures are adjusted.
The conveyancing settlement occurs and the transfer of ownership from the Seller to the Buyer is finalised.
CONVEYANCING CONTRACT OF SALE ADDITIONAL SPECIAL CONDITIONS
Other special conditions can be added to the contract if both parties agree, such as:
Making the purchase contingent on the sale of the Buyer’s current property
Requiring satisfactory completion of property searches
Allowing the Buyer access to the property or early possession before settlement
Making the contract conditional on the Seller arranging for professional cleaning of the property before settlement
STEPS TO TAKE IF YOU ARE SELLING PROPERTY IN QUEENSLAND
Draft the contract of sale with a Real Estate Agent or privately
Decide the purchase price of the property
Conduct Open Homes and Private Inspections
Review offers of purchase
Review the contract of sale, finalize contract conditions and sign the contract of sale
Exchange signed contracts between all parties
Cooling-off period
Special Conditions are satisfied by all parties
The Contract of Sale is deemed unconditional
Settlement is completed
Can the Seller cancel a contract in Queensland?
Once the contracts are signed, the transaction becomes legally binding. If the seller chooses to withdraw from the sale, they could incur significant penalties, including the agent's lost commission, marketing costs, and legal fees for work performed by their conveyancer.
Are conveyancing deposits refundable in Qld?
If the Buyer cancels the contract during the cooling-off period in Queensland, the Seller can retain a penalty of 0.25% of the purchase price from the deposit and must return the remaining deposit amount to the Buyer.
Do you need to pay tax after selling a house in QLD?
Generally, when you sell an asset, you are required to pay capital gains tax (CGT) on any profit earned from the sale.
Conveyancing FAQs for a Sale Contract
It's always wise to seek independent legal advice before signing any contract. If you'd like the property lawyers at Horrocks Solicitors to review a contract on your behalf, feel free to call us today 07 3013 2300 or contact us through our online form.