THE IMPORTANCE OF HAVING YOUR CONTRACT REVIEWED PRIOR TO SIGNING

Written by Abbey Currin

Congratulations! You’ve just found the house of your dreams; the price is right; the house is perfect and ready to move into; lets sign a contract.

In the current housing market, purchasing a home for the first time may be one of the biggest and most important financial transactions of your life. When looking at signing your life away for that perfect home it is important to keep a few things in mind before rushing into signing a contract.

What is a contract and why is it so important to have it right the first time?

 A contract of sale is a written agreement between yourself and the seller for the purchase of the property. This legally binding document outlines the parties of who is buying and selling the property, the property itself, what will be sold with it, and most importantly the price in which you will be paying for that property to be yours.

It is imperative that these details are correct before the contract is signed and completed by both parties. The reason being, that once the contract is signed and executed, there is a legally binding contract on foot, meaning that it cannot be amended, changed, or varied without agreement by both parties through their legal representatives. Keep in mind that the vendor is under no obligation to agree to any requests and can refuse to amend the contract in any way.

What if my name is spelt incorrectly and need to amend my contract?

So, you’ve signed a contract and your conveyancer has just confirmed receipt of the fully signed contract by the seller; how exciting! Now that the overwhelming initial excitement and anxiety of putting the pen to paper has passed, you realise that your name is spelt incorrectly on the contract. Should you leave it and hope that no one picks up on it? Absolutely not! Having your name spelt incorrectly can open the door to a lot of time sensitive issues. It isn’t the end of the world; however, it is an issue that needs to be fixed straight away so that your bank as well as your conveyancer can proceed with the legal transfer of the property.

When reviewing your contract before signing, it is always a good idea to ensure that your name on the contract reflects your given name/s detailed on your legal identity documents (e.g. drivers license, passport and birth certificate).

Why do I need a conveyancer to review my contract?

In Queensland, as soon as you sign a contract of sale for a property, the insurance liabilities lie with you, meaning you are responsible for the property from now until it becomes yours. When inspecting a property for the first time it’s not always your first thought to look around the property and see if there are any large structures on the property that might need to be council approved. However, small details like this may be a complete deal breaker when it comes down to you realising that you have to fork out thousands of dollars to have that beautiful big boat shed council approved.

As soon as the contract is signed you are legally bound to adhere to the conditions outlined as well as the specific date and times listed. It is imperative to give your conveyancer a call to discuss what conditions may need to be put into the contract to protect you from not only losing your deposit but protecting you from potential claims from the seller.

What if I signed a contract and just found out that I can’t get finance?

So, you signed a contract a few weeks ago; you sent the contract to your bank for your loan application and your banker has just called you to let you know that they cannot process your loan; your application has been declined. If you are not protected by a finance clause in your contract, this can open you up to not only losing the contract, but also losing your deposit paid and potential claims from the seller for any loss on the resale of the property. This could be a major financial liability that could cause you financial detriment.

How do I have a conveyancer review my contract?

At Bellco, we understand how stressful and overwhelming buying your first house can be; that’s why we are here to help. We are more than happy to help you with any questions you may have before or once you receive a draft contract from the agent. To have your contract reviewed by one of our staff members, please give our office a call on 4772 2188 so we can best help you.