Getting the fundamentals right
Start by confirming that the parties, property details, price, deposit and settlement date are recorded correctly.
Confirm the correct buyer and legal names
The buyer may be an individual or company, including in the capacity as trustee. Confirm the intended purchasing entity and capacity, and ensure the legal names align with your identification, finance and professional advice before signing.
Check the property description and lot on plan
Confirm the address, lot number and plan number match the property you intend to purchase. Ask your solicitor about any inconsistency before signing.
Verify the purchase price, deposit and due date
Confirm the purchase price and negotiated deposit are recorded correctly. Check when the deposit is due and whether the payment arrangements are achievable.
Confirm the settlement date is workable
Check that the proposed settlement date allows enough time for finance, searches, documentation and any other steps relevant to your purchase. Confirm the timing with your solicitor, lender or broker before agreeing to it.
Understanding the conditions
Contract conditions can provide rights where specified requirements are not met. The wording, deadlines and notice requirements matter, and your solicitor should explain how each condition operates before you sign.
Check the finance condition
Confirm the finance amount, financier and approval date are appropriate for your circumstances. Ask your lender or broker how much time is realistically required and have your solicitor explain the clause.
Check the building and pest condition
Confirm the inspection date is achievable and understand the standard that applies if the report identifies an issue. The available rights depend on the wording of the condition and whether its requirements are met.
Understand every condition date and notice requirement
Record when each condition is due, what evidence or notice may be required and what happens if the condition is not satisfied, waived or dealt with by the deadline.
Review every special condition
Special conditions can change the standard contract terms or create additional obligations. Ask your solicitor to explain each one and confirm that any condition required for your circumstances has been included.
What you are actually buying
The contract should clearly record any exclusions, movable items included in the sale and other negotiated arrangements. Ask your solicitor about anything that is uncertain.
Check fixtures and exclusions
Fixtures generally form part of the property unless the contract excludes them. Review the contract for any excluded fixtures and clarify uncertain items such as window coverings, light fittings, solar equipment, batteries, pool equipment and air conditioning systems.
Record any movable items included in the sale
Movable items such as furniture or freestanding appliances generally need to be clearly identified if they form part of the agreement. Ensure any negotiated chattels are recorded in the contract.
Check whether GST applies and whether the margin scheme is relevant
GST does not generally apply to the sale of existing residential property. Different rules may apply to new residential premises, commercial property, taxable land transactions or a going concern, so ask your solicitor and accountant whether GST or the margin scheme is relevant.
Checks to discuss with your solicitor
Some checks may be completed before signing, while others continue during conveyancing. The timing matters because a problem discovered after signing may not give the buyer a right to terminate.
Request an initial title search
Where possible, obtain an initial title search before signing. It can confirm the registered owner and identify registered interests such as mortgages, easements, covenants and caveats. Ask your solicitor what should be checked before you commit.
Ask which additional searches are appropriate
The appropriate searches depend on the property, location and intended use. They may include council, planning, building, flood, contaminated land, heritage, transport, body corporate or other records.
Confirm whether a cooling off period applies
Most Queensland residential private treaty contracts have a five business day cooling off period. It generally begins when the buyer receives the contract signed by both parties and ends at 5pm on the fifth business day. Exemptions apply, including auction sales and some other contracts or buyers. A buyer may waive or shorten the period in writing, and the seller may deduct a termination penalty of up to 0.25 per cent if the buyer terminates during it. Ask your solicitor to confirm the position and exact expiry time.
Confirm the Seller Disclosure Statement was provided
For contracts covered by Queensland's seller disclosure scheme, the seller must generally provide a signed Form 2 Seller Disclosure Statement and the prescribed certificates before the buyer signs.
If the documents were not provided, or the disclosure was inaccurate or incomplete about a material matter, a termination right may arise before settlement where the statutory requirements are met. Ask your solicitor to confirm whether the disclosure is complete and what it means for the property.
The Form 2 does not cover every due diligence matter, including the property's flood history, structural condition, pest history, current or past approvals and planning limitations. Separate searches, inspections and advice may still be required.
Understand disclosed and registered interests
Ask your solicitor to explain any easements, covenants, caveats, community management statements, body corporate records, scheme documents or other interests affecting the property.
Confirm when risk passes and arrange insurance
Under many Queensland residential contracts, risk passes to the buyer from 5pm on the next business day after the contract date. The contract controls the position, so confirm the timing with your solicitor and arrange appropriate insurance when advised.
Confirm the parties and signing authority
Check that the correct sellers and buyers are named and that the contract has been signed correctly. Where a company or trustee is involved, have your solicitor confirm the legal entity, capacity and signing authority.