I was reminded again this week, that for those that don’t deal with property on a regular basis, or have some kind of legal background or experience, real estate just isn’t as straightforward as it seems to those on the inside.
We’re a bit spoilt in QLD, particularly since 2014, that the sum total of a contract of sale for a house or residential land, can be as little as 15 pages. And while few in the industry miss the older versions, the added (and outdated) disclosures and the danger of missing a staple and having a contract rendered void (I’m looking at you, PAMD Form 30C), the risk in this more printer friendly version, is that there is a lot that isn’t explicit. If you know, you know, but if you don’t it can be a hard slog.
Two of the best examples recently came across my desk, and while both related to offers, the questions and assumptions by the two (unrelated) properties couldn’t be more different.
The first case involved a buyer seeking to purchase a home, whom had submitted a contract signed by themselves for purchase. While the sellers were still deliberating, the buyer became (reasonably) agitated by the delays and ultimately decided to pull the offer, rather than remain bound to it with no commitment and risk missing opportunity elsewhere.
In this case, the buyer’s worry was somewhat premature. Under the terms of the standard contract for the sale o f houses and residential land, an offer is only binding on both parties once both parties have signed and agreed to all relevant terms, and the fully executed contract is delivered to all parties. So as long as the buyer has yet to receive that final completed agreement, they’ve still got a get out of jail (or sale) free card. Even once signed, the Cooling Off period has provisions to end a contract for whatever reason, with minimal or no cost.
At the other end of the spectrum, I have had buyers attempt the argument that in signing the contract, they didn’t realise they were signing THE CONTRACT, merely communicating the terms of their potential offer. In that vein of reasoning I have also seen those with a misunderstanding of the realities of a “cash contract” and that the absence of a finance clause means there is no recourse if they can’t come up with the money. You can imagine how well those scenarios might play out.
This is really one area, where if you don’t know, you need to ask questions. Ask them early and regularly. And speak to your solicitor first!