Is it ok to pay 10% deposit w/o having the solicitor review the terms?

[Lilith]

Hi there,

I employed the service of a solicitor based on recommendations of the forum. Unforunately the solicitor / or the clerk seems quite irresponsive. I have signed the sale contract but haven't paid the deposit. Now I am about to make the 10% deposit but the solicitor still hasn't received the contract from the seller's agent. I rang up the solicitor and she said it is fine to go ahead before she views it, since the contract should be fairly standard. This is quite different from how we handle it in the US, since my lawyer will not allow me to do anything without his consent.

Is this normal for QLD? Should I make a deposit AFTER the conveyancing solicitor has reviewed the contract? What are consequences if I pay the desposit first? Thanks!

 

[MarkB]

Lilith

In Queensland the purchaser (not the vendor) has the benefit of a 5 (working) day cooling off period.

It is therefore my understanding that you can sign a contract in Queensland and then still back out (within that cooling off period) without penalty.

Why are you paying 10%?

(I think you're being very generous)

Both times I have signed a contract in Qld it has been on $1000 (the first sale did not proceed, the second did).

One other thing - in Qld the property is at your risk from COB the day after contracts are exchanged. So if you are serious about buying this place, arrange some insurance ASAP.

MB

 

[Lilith]

Hi Pitt Street,

it is an OTP and I believe the latest law changes require the buyer to put down 10% (the Mirvac case). I am fine with the 10%, but I am concerned that my solicitor sounds like she doesn't care if I pay before her reviewing the contract. Let's say, if during the conveyancing stage something goes wrong, can I still pull out? If the solicitor hasn't seen the contract, how does she know whether the clauses are standard?


Thanks!

 

[Aceyducey]

Lilith,

The Mirvac case was in Vic about a state law.

QLD is a different legal jurisdiction.

Cheers,

Aceyducey

 

[BUNDY]

Lilith,

Acey is right. You can put down whatever deposit youl ike in Qld as long as it is acceptable to the vendor, (Not the agent). It is the vendor who makes the decision, however, they are often influenced by the agent - who generally wants to cover their commission. - Fair enough, business is business.

I'd be finding a new conveyancer if I were you. Surely they are not too busy to look over your contract in 5 days. If it's the agent fault, I'd be stipulating that they contact the vendor and explain to them why your solicitor has not received the contract??? Are you sure the vendor has counter signed it??

Cheers
Bundy.

 

[Kevin Hockey]

Hi Lilith,

I hope the contract is subject to something, preferably finance plus building and pest inspections. If not, as has been mentioned you do have the cooling off period to fall back on but it will cost you .25% of the purchase price if you exercise your right under this condition.

5% deposit is probably normal in Qld but 10% is fine. Some do go through with minimal amounts, $500 or $1000, but most owners, agents and solicitors are not receptive to it. The solicitor doesn't need to see it first for you to pay the deposit. Over 90% of our office contracts would have a deposit paid prior to the solicitor having perused it. If the condition of the deposit to be paid in the contract states "when buyer signs this contract" then you are technically now in breach of the contract and potentially it can be made void by the owner if they wanted to.

In Qld we prefer to keep contracts out of the hands of those who want to stuff everything up. ( This is tongue in cheek, no offence intended)

If you want any further help feel free to contact me on 07 3266 3555. Hope all goes well.

Kev

www.nundahrealestate.com.au

 

[Wiseguy]

what is the procedure to exercise this option in NSW?

thanks!