What is the maximum deposit required under the standard contract of sale?

4. What is the cooling off period?The cooling off period is a time period within which you can choose to exit from the Contract without providing the Seller with any reason. It is

What is the maximum deposit required under the standard contract of sale?

4. What is the cooling off period?

The cooling off period is a time period within which you can choose to exit from the Contract without providing the Seller with any reason. It is a right that you have as a Purchaser. However, please note that the Seller has the right to claim 0.25% of the Purchase Price offered by you as a penalty for exercising your cooling off right.

The standard cooling off right in Queensland is 5 business days from the day that you or your Solicitor/Conveyancer receive the fully signed Contract.

5. What sort of conditional clauses can you negotiate into the Contract in Queensland?

Many Contracts in Queensland purchases are made subject to Finance, Building and Pest Inspection and/or Due Diligence. The standard practice in Queensland is for Sellers to allow Buyers the opportunity to complete their due diligence in relation to the Property before they proceed to Settlement. If you have not had the chance to complete your due diligence before you sign the Contract, it is recommended that you make a conditional offer to allow you the opportunity to satisfy yourself of any queries or concerns before you approach Settlement.

6. How can I make the Contract subject to Finance?

The standard REIQ Contract already contains adequate protection for Buyers wanting to make the Contract subject to Finance approval by their financier. You only need to ensure that the Finance section of the Reference Schedule is completed in full. Please note that if this section is not completed properly then the Contract will not be subject to Finance. Hence, it is important that you engage a Solicitor and Conveyancer to confirm that the Contract has been completed correctly by the Sellers agent before signing.

7. How much Deposit should I pay under a Contract?

The amount of Deposit is dependent on the parties agreements. The standard Queensland practice is that the Deposit is payable in two lots. An Initial Deposit of a nominal amount is usually paid upon signing of the Contract by the Buyer, with a Balance Deposit due upon the Contract becomes unconditional or at a later agreed date. The Deposit is often viewed as a way of gauging a Buyers interest in the Property, hence, many Buyers will offer a total Deposit of 5  10% of the Purchase Price. However, it is ultimately based on parties agreement so you may want to discuss with the Seller how much Deposit they are looking for and go from there.

8. Why do I need to buy insurance for a Property prior to Settlement?

As a Buyer, the Property becomes at your risk from 5 pm the second business days after the Contract Date. Although the Seller does have the responsibility to look after the Property during the Settlement period, it is in your best interest to purchase insurance so you can be certain that a third party will step in to protect you should any misfortune befall the Property, reducing the risk you carry as well as potentially eliminating the need to spend time, money and effort in a dispute with the Seller closer towards Settlement.

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