What to Expect Once Your Property Goes Under Contract in Queensland
Congratulations! You’ve successfully secured a buyer and your property is now under contract. For many sellers, this milestone is a cause for celebration but also brings a whirlwind of processes and obligations. At Smyth RE, we understand the importance of a seamless transaction. That’s why we’ve prepared this guide on what you can expect during the critical post-contract phase in Queensland.
1. Understanding Contract Conditions
In Queensland, contracts can be either unconditional or conditional. Most commonly, contracts are conditional upon certain key events such as:
- Finance Approval: The buyer may have a set period (commonly around 14 to 21 days) to secure finance approval from their lender. During this period, the buyer works with their bank or mortgage broker to obtain final approval of their home loan.
- Building and Pest Inspection: Often, a buyer will request a building and pest inspection to assess the condition of the property. If issues arise, there may be negotiations to address any repairs, reduce the purchase price, or agree on other adjustments. This is usually completed within a specified timeframe, typically between 7 to 14 days from the contract date.
- Other Conditions: Depending on the situation, contracts may also be subject to the sale of the buyer’s existing home, pool compliance, body corporate approval (for units or townhouses), or other conditions unique to the agreement.
Once these conditions are met, the contract becomes unconditional and moves to the next steps.
2. The Cooling-Off Period
In Queensland, residential property buyers generally have a five-business-day cooling-off period from the date of the contract being signed. During this time, the buyer can choose to terminate the contract, though a termination fee of 0.25% of the purchase price may apply if the buyer pulls out. Sellers should be aware of this window, as it may impact their plans if the buyer exercises their right to cancel.
3. Legal and Conveyancing Processes
Your conveyancer or solicitor will play a key role once your property goes under contract. They handle:
- Title Searches and Documentation: Ensuring there are no encumbrances, caveats, or other issues with the title that might delay settlement.
- Drafting Settlement Statements: They’ll prepare a breakdown of funds, including adjustments for council rates, water charges, and any other relevant costs.
- Communication with the Buyer’s Legal Team: They’ll liaise with the buyer’s representatives to ensure both parties are prepared for settlement.
4. Preparing for Settlement
With all conditions satisfied, the contract is considered unconditional and moves toward settlement. Settlement is the official handover of the property, at which point ownership is transferred, and funds are exchanged.
- Final Inspection: Buyers typically have the right to a final inspection of the property (usually 1-2 days before settlement) to ensure it remains in the agreed-upon condition.
- Vacating the Property: Ensure you’ve moved all possessions out of the property (unless there is another agreed arrangement). The property must be left in a reasonably clean state, with any agreed repairs completed.
- Key Handover and Settlement Day: On the settlement day, your solicitor/conveyancer will handle the exchange of documents and funds. Once finalised, you’ll hand over keys and any remotes or relevant manuals to your agent or directly to the buyer’s representative.
5. What Could Go Wrong?
While most transactions proceed smoothly, unforeseen issues can arise, such as:
- Finance Delays: Buyers’ finance approvals may be delayed, potentially requiring an extension to the settlement date.
- Inspection Issues: Building and pest inspections might uncover unexpected issues, leading to potential renegotiations.
- Legal Matters: If title issues emerge, they must be resolved before settlement.
At Smyth RE, we work closely with all parties to minimise these disruptions, keep you informed, and ensure the best possible outcome.
6. Celebrating Settlement Day
Once settlement is complete, funds are distributed, and ownership is officially transferred. Congratulations—you’ve successfully sold your property! At Smyth RE, we celebrate this important milestone with you, and we’re always here to assist with any future real estate needs.
In Summary: Key Tips for Sellers
- Stay in close communication with your solicitor/conveyancer.
- Be prepared for potential renegotiations or adjustments during the conditional period.
- Ensure the property remains in the agreed-upon condition for the buyer’s final inspection.
- Trust your real estate agent to guide you and keep everything on track!
Selling a property can be complex, but with the right support and knowledge, it can be a rewarding experience. At Smyth RE, we’re with you every step of the way!
