While we are based in Queensland, we know that property contracts differ state by state. In the case of a new property, the contract is prepared by the developer or builder and passed to the buyer to read over before signing. It will usually include specifications and progress payments if the property is not built or completed yet. Contracts are prepared after a small holding deposit is paid – this might be $1,000 – and is generally refundable if you decide not to proceed for any reason at all.
Here, contracts are not ‘exchanged’ like they are in NSW and we recommend you have the contract examined by a property lawyer before signing it. Both parties will receive a copy of the final signed contract and each will generally employ a lawyer or conveyancer to act for them in the sale or purchase.
When you buy a new property that is not yet built, you usually buy the land on a separate contract and then the build is via a construction contract. There are also other variations, such as, a single contract house and land. This is necessary for buyers using a Self Managed Super Fund as they cannot change the character of the property after buying it.
Although you might want to put your own name on the contract, you might need advice on whether to buy it in your own name, joint names, as tenants in common, in a company or trust, or as a Self Managed Super Fund. Getting this wrong can be extremely costly. For example, you may need to pay stamp duty (or the transfer fee) twice if you later decide you want to change the ownership. So you really need to consider these things first and although we’re not solicitors, we can provide some guidance and recommend a good lawyer if you’re not sure of the best way to progress.
Everyone thinks about the total price on the contract, but there are many other variations that are just as important. There is the deposit amount required and date, the settlement date, conditions on the transaction set by either party and all the build specifications that can change to varying extents. You may decide you want different tiles in the bathroom or you may want security screens fitted at an extra cost. These sorts of things need to be negotiated and included in the contract, with additional costs where appropriate. Of course, we can help you with all this too.
At Investment Property HQ we can recommend exceptional conveyancing solicitors who provide special discounts to our clients. We receive nothing from them, but we pass any savings on to you instead. Should a disagreement or issue arise between the parties, it is important to have professional, specialist lawyers working for you to sort things out quickly. This takes the stress out of the process – and ensures it all goes smoothly.
We are with you all the way. We’ll explain the contract, get answers to your questions and guide you through the process to whatever extent you prefer. Rest assured, you’re in good hands.