Yes you do have a cooling off period if you are the buyer. This period is 5 business days with Day 1 commencing the day you receive a copy of the contract signed by both parties ( provided this is a working day and you receive the contract before 5pm). If you receive the contract on the weekend or a public holiday or after 5pm on a working day then Day 1 of the cooling off period will be on the next working day. The seller does not have a cooling off period.
No you will not have a cooling off period for a contract formed on a sale by auction or a contract entered into, by no later than 5p.m. on the second clear business day after the property was passed in at auction and where you were a registered bidder for the auction.
You may be liable to a termination penalty which is .25% of the purchase price, if you terminate under the cooling off period. For example if the purchase price is $300000 ( three hundred thousand dollars) then you may be liable for a penalty of $750 ( seven hundred and fifty dollars)
Yes, you should always sign a contract subject to finance if you intend borrowing money to fund the purchase, even if you have pre approval. Even though you have pre- approval the bank may still have to complete a valuation on the property and if they value the property less than the purchase price then you may not have sufficient funds to complete the purchase. This could potentially mean that you will be in default of contract if your contract is not conditional upon you getting finance approval.
This depends! Once your solicitor has advised the sellers in writing that you have obtained finance approval in accordance with the terms of the contract then the contract ceases to be conditional upon finance approval. This means if your lender decides after this notice is given that they are not able to advance you the funds required for settlement , then it is too late for you to terminate the contract . If you do not settle this will mean you will be in default of contract.
When the buyer has not fulfilled their obligations under the contract and in particular their obligations to pay the deposit when it is due under the contract and their obligations to settle the transaction and pay the balance of purchase price when this is due.
This will mean the buyer will forfeit the deposit payable under the contract and the seller may have a number of other remedies . For example the seller could sue the buyer to recover any loss they sustain on resale of the property. The seller may also recover any consequential loss that is reasonably foreseeable, any additional expenses they incur as a result of the sale not being completed on the nominated settlement date, and any solicitors fees they incur arising from the sale or subsequent legal proceedings against the buyer.
We recommend that you negotiate the inclusion of a building and inspection clause as part of the offer you intend making . This may entitle you to terminate the contract without penalty if you discover something adverse in the reports.
If you sign a standard Qld contract you may be entitled to terminate the contract if you are not satisfied with your building or pest inspection however you must act reasonably. Therefore if the reports revealed only minor issues that a reasonable person would not be concerned with, then you would not possess a right to terminate.
The contract will nominate the date by which you have to pay the deposit. You should check this date prior to signing the contract . If the date the sellers agent inserts into the contract is not suitable to you , and you wish to change this date then you need to ensure the date that is suitable is in the contract before you sign it and give it to the sellers agent. It is potentially too late to change this date after the contract is signed.
