Checklist 03 of 06 — Before Signing
A signed contract is a binding legal commitment. This checklist is designed to be worked through with your conveyancer before you sign, so that you understand what you are agreeing to and the conditions you have in place to protect yourself if things do not go as expected.
Many of these items are for your conveyancer to advise on. Your role is to understand the answers, not just collect the ticks.
Before examining conditions and clauses, confirm the foundational details of the contract are accurate. Errors in names, property descriptions or purchase price need to be identified and corrected before the contract proceeds.
The names on the contract must match your identification documents and, if applicable, your finance approval. Errors in legal names can cause significant delays at settlement and may require amendment before the contract can proceed.
Confirm the lot number, plan number and address in the contract match the property you inspected. Errors in property descriptions are rare but can occur, particularly with rural properties, recently subdivided lots or properties with complex titles.
Confirm the purchase price matches your agreed offer, the deposit amount is correct and the deposit due date is achievable given your bank's processing times. Standard Queensland deposits are 10% but this is negotiable and should reflect what was agreed.
Ensure the settlement date allows enough time for formal approval. Lender valuations, assessment queues and document processing can take longer than expected. Standard timelines are 30 to 60 days, but complex situations may need more.
Contract conditions give you the right to exit or renegotiate the contract if specific circumstances arise. Understanding them, and whether they are adequate for your situation, is essential before you sign.
The finance clause should specify the lender, loan amount, loan type and the date by which finance must be formally approved. Ensure the date allows enough time for a valuation, credit assessment and written approval. A date less than 14 days away in normal conditions is very tight.
The building and pest condition should specify the inspection must be completed to a standard satisfactory to the buyer. The due date should allow at least five to seven business days to book, complete and receive a written report.
Understand your rights if finance is not approved or the building inspection reveals significant issues. In Queensland, unsatisfied conditions generally allow you to terminate and receive your deposit back, but the contract wording matters. Have your conveyancer explain the termination provisions.
Special conditions can alter the standard contract significantly. Common examples include early access provisions, subject to sale clauses, inclusions or exclusions, delayed deposit arrangements and pool compliance requirements. Do not assume they are standard.
The inclusions schedule defines exactly what you are purchasing. Items not listed in the contract belong to the vendor unless otherwise agreed in writing. Verbal promises from agents are not enforceable.
Every fixed item you expect to be included in the sale should be listed in the contract. This includes window treatments, light fittings, solar systems, batteries, pool equipment, air conditioning units and any items the agent represented as included. If it is not in writing, it is not included.
Moveable items that were part of your negotiation, such as appliances or furniture included in the sale price, should be itemised. Verbal agreements with agents about inclusions are unenforceable unless confirmed in the contract itself.
For most residential property transactions GST does not apply. However, new residential properties sold by a developer, properties used for commercial purposes or transactions involving going concern provisions may have GST implications. Ask your conveyancer if you are unsure.
These are the checks your conveyancer should be progressing from the moment you have a signed contract. Understanding what they are looking for helps you ask the right questions and respond quickly if issues arise.
An early title search reveals the current registered owner, any mortgages, easements, caveats or other registered interests on the title. This is a preliminary check that can surface issues while you still have the most options available to you.
For contracts signed by private treaty in Queensland, a five-business-day cooling off period applies. Note the exact date and time it expires. Termination during this period must be done in writing before expiry and a 0.25% penalty applies.
The contract should disclose known encumbrances affecting the property, including registered easements, restrictive covenants, community management statements or body corporate by-laws. Your conveyancer will investigate further, but you should understand what has been disclosed.
In Queensland, risk generally passes to the buyer at contract signing for private treaty sales. Building insurance should be arranged immediately after signing. Confirm the insurance position with your conveyancer and understand what happens if the property is damaged during the contract period.
A contract must be signed by all registered owners of the property and all purchasing parties. If the property is held in a company or trust name, confirm the signing authority of the person executing the contract. An improperly executed contract may be unenforceable.