Buying and selling of properties involves a number of processes and procedures. There is a lot of documentation required at each step of the way in order to make it a legally binding contract. Conveyancing in Brisbane can be tricky as both the buyer and the seller are looking for their own best interests. Property managers and conveyancing solicitors provide all kinds of assistance and guidance to both parties regarding rules that govern buying and selling contracts for real estate. It is important to be informed of all legal issues before going ahead with the deal.
When going through the property contract, there is a cooling off period that can be effectively used by the buyer and the seller. During this period the buyer has the right to cancel the property deal due to any valid reason. The rules regarding cooling off periods may vary for different regions or territories. These rules are applicable for a private sale and not when a property is being auctioned off. Also, cooling off period is for residential property and does not apply to a commercial real estate. In case the buyer consulted a lawyer and obtained a Lawyers Certificate before the contract was signed, the cooling off period may not apply.
The duration of cooling off period is five business days commencing from the date when the buyer enters into a binding contract. The buyer becomes bound only after receiving the contract papers signed by both parties. All of these five days have to be business days so any holidays coming in between may not count.
The benefit of a cooling off period is that it gives the buyer the right to terminate the contract any time during these days. Pre-sales inspections can be carried out for the property to identify any presence of pests and termites. This information may not have been previously disclosed by the seller. Also, faults in the structure can be inspected by the building inspectors to ensure everything is the way it was supposed to be. In case the contract is terminated due to any of the reasons mentioned above, the seller is legally bound to refund the deposit. However, a termination penalty of 0.25% of the contract price may be deducted.
The cooling off period protects the buyers from buying a property after realisation that it is not worth the asking price. There can be many reasons why the buyer might want to terminate the contract. Whatever the reason may be, the decision of not to go ahead with the deal can easily be implemented during the cooling off period.
All complex and complicating conveyancing processes in Queensland are best handled by conveyancing solicitors that can be consulted prior to getting into a property deal.