Legal Comment by Mark Illidge

9 November 2006

Check contract and seek legal advice before you sign

With so much at stake you should never sign a contract without being sure it actually reflects the deal you have struck.  Most property transactions are formalised by using one of the standard contracts developed by the Real Estate Institute of Queensland and the Queensland Law Society. The contract is usually prepared by the agent and presented to a buyer to sign either when an offer is being made or when a verbal offer has been agreed upon.  If the seller accepts the terms of the contract from the buyer and signs it, the contract immediately becomes binding on both parties.  Ask the agent to fax the contract to your solicitor, for discussion with you, before you sign.

Consider your individual needs

Both you and your home are unique so don't assume a standard contract will meet your requirements.  A standard contract cannot deal with the individual circumstances of every transaction.  Special needs require "Special Conditions"!  Just a few of the issues particular to your transaction might be: a rent back period; a soil test; a requirement for you to sell your home first; items that are included or excluded from the sale; or problems that must be fixed prior to settlement.
If you have asked for special conditions to be included  in your contract you need to be  sure they will be effective.  Special conditions that are poorly drafted may have little or no effect if a dispute arises.  So while you thought you were protected you may not be!  We recommend you discuss your special conditions with your lawyer so that they are drafted in a way to give effect to the deal and give you proper protection.

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