A major part of the conveyancing process in Brisbane is preparation of a real estate contract. This contract comes into being after there has been an offer and acceptance made by both parties and an agreement is reached on the terms of the contract. Signatures on the written contract from the buyer and the seller provide a guarantee that both have accepted the terms of the contract. This document is prepared with the help of conveyancing professionals to ensure that all details are included in the adequate manner and that the rights of both parties are protected with these terms and conditions.
Every real estate or property contract must have certain essential requirements. The first and basic requirement is that everything should be in writing. There should also be mutual assent of the buyer and the seller. This means that they both agree to all the terms of the contract and have a clear understanding of the property and its price. The names of the parties with an indication of who is the buyer and who is the seller must be clearly mentioned on the document. The purchase price of the property should also be there in the exact amount. Consideration, that is anything of value that is bargained with, will be mentioned here. This is usually in the form of money, such as cash or financed mortgage loans. Another requirement is the exact description of the property being sold so that it can be easily identifiable. A street address might be sufficient for this purpose; however, a legal description should also be used for better clarification. Other details, such as date for completion, or the fact that the property is subject to any encumbrance, can also be included in the contract. This legal document has to be signed by all parties as well their authorized property agents. In case of businesses and corporations, authorized personnel may sign on behalf of the business entity.
Another essential requirement for a property contract is that it should be prepared for parties with the 'capacity' to enter a contract. Minors, mentally disables persons and bankrupts are not permitted by law to enter into any such contracts. Any person who is later labelled as mentally incompetent could also become voidable.
A contract becomes legal and binding if all essential requirements are duly completed by those involved in conveyancing in Queensland. This is the reason why services of competent conveyancing solicitors are considered essential when entering into any property contract.