Important Information for Buyers
Cooling Off Period
The standard REIQ contract is subject to a cooling off period.
You can change your mind about purchasing the property during the cooling off period. If, during that time, you decide to terminate the contract, the seller must refund your deposit within 14 days less a termination penalty equal to 0.25% of the purchase price.
Items Included in Purchase
Items which are included in the purchase price are all stoves, hot water systems, fixed carpets, curtains, blinds and their fittings, clothes lines, fixed satellite dishes and television antennae and in-ground plants.
Insurance
The contract provides that the property is to be at your risk from 5pm on the next business day after the date of the contract although the sellers, whilst continuing in possession, are required to use the same with reasonable care. This means that if the improvements on the property and/or any chattels were destroyed before settlement, you would still be obliged to complete the purchase. Appropriate insurance cover should be arranged immediately.
Approved Electrical Safety Switch
Under the provisions of the Electricity Regulation 1994, the sellers are obliged to advise buyers in writing whether or not an approved safety switch for the general purpose socket outlets has been installed in the residence.
Smoke Alarm(s)
From 1 July, 2007, it is mandatory under the Fire and Rescue Service Act 1990 that the required number of smoke alarm(s) which comply with Australian Standard 3786 be installed in every domestic dwelling. The sellers are obliged to notify buyers in writing as to whether they have been installed or not. (For more information, please visit www.fire.qld.gov.au)
Transfer Duty
The Government requires transfer duty to be paid on the Contract within one month of the date of the Contract becoming unconditional. If transfer duty is not paid within this time, the Government may impose penalty duty.
Seller’s Warranties
The seller has a duty to disclose certain matters to you, for example, whether the land is on the Contaminated Land Register, and for improved property, whether it was ‘owner-built’ and whether an electrical safety switch is installed. (For a specific list, please see Clauses 7.2, 7.4 & 7.7 of the Terms of Contract)
The only way to confirm the seller’s compliance is to undertake specific searches or enquiries of the relevant authority. Some searches will take up to two weeks to receive a reply and if they are not received in time to exercise any rights you may have under the contract and/or legislation as a result of an adverse result, then you will lose the benefit of conducting them at all.
There are also certain enquiries which may reveal adverse impacts where you will not be able to terminate the contract. Examples include discovery of unapproved structures, non-compliant swimming pool fencing and flooding.
Property Adversely Affected
If you have not been advised in the Contract that the present use of the property is unlawful, any proposals to alter the dimensions or create a road or railway on or abutting the Property, any access or service to the Property passes unlawfully through another’s land, of any notice to treat or resume any part of the Property or that the Property is affected by the Queensland Heritage Act 1992 or is World Heritage Listed you may terminate by giving notice to the Seller at least 2 days prior to settlement.
Searches which are considered a must are: –
- Easements search (if there is an easement on the title)
- Survey Plan
- Land Tax
- Council Rates search
- Water Meter Reading
- Queensland Transport Search
- Department of Main Roads Search
- Check search at settlement
These basic searches will not necessarily reveal all problems with the property and further additional searches should be considered.
Additional Searches
We recommend every Buyer consider undertaking some or all of the following searches (as applicable) to confirm good title to the property or to check it has not been adversely affected.
Description Approximate Cost
| Local Authority Resumptions (checks claims to resume part of the land by a Local Council); | Varies with Council. |
| Building Approvals (advises what approvals have been obtained for improvements on the land); | Varies with Council. |
| Flood Search (Please note that even if a property has flooded before, this does not necessarily give you a right to terminate the contract, although your financier may impose conditions concerning this issue); | Varies with Council. |
| Drainage Plan (sets out plan of sewer, water and stormwater pipes); | Varies with Council. |
| Planning and Development Certificate (includes description of any planning scheme provisions and designations applying to the premises); | Varies with Council. |
| Property notices (checks to see if the Council has issued any notices requiring work on the property); | Varies with Council. |
| Certificate of Classification (confirms whether or not premises may be occupied). | Varies with Council. |
| Queensland Railway (checks claims to resume part of the land by Queensland Railway); | $27.50E |
| Powerlink (advises whether it has any existing rights over the property or any approved projects affecting it); | $55.00E |
| Contaminated Land (checks to see if the land is registered as a contaminated site); | $41.22E |
| Local Electricity Authority – either Ergon or Energex (advises whether electricity is supplied to the premises and if the authority has any resumptions on the property); | $39.06E |
| Telco Cable Search (searches for any underground cables that would prevent you from building pools, driveways, house extensions or fences); | $60.50E |
| Queensland Building Services Authority (checks to see if the building is covered by building insurance); | $29.45E |
| Mining (checks to see if there are any mines underneath); | $63.25E |
| Bankruptcy (checks to see that the Seller is entitled to sell the land and is not bankrupt); | $22.22E |
| Full search of Body Corporate Records (applicable if buying a unit only – provides a “history” of the body corporate. This search provides details on any disputes or works carried out by the body corporate). | Between $145.00 – $330.00 |
If you have any questions or would like to speak with one of our solicitors, please contact us.
