QLD Finance Clause When does it start?

Discussion in 'Legal Issues' started by TILT, 31st Mar, 2015.

  1. TILT

    TILT Member

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    In QLD a contract becomes binding when both parties sign and the contract and it is returned to the purchaser or their solicitor. Five days cooling off starts from that day.
    What i want to know is when does the 14 day subject to finance clause start.
    It seems logical that it would start on the same day that the signed contracts are returned to the purchaser or his solicitor.

    Had a solicitor tell me that it starts on the day the contract was signed. Not the day the purchaser or his solicitor got the signed contracts back . This doesn't seem logical. There was a five day difference. Which reduces the time i have to arrange a loan by five days.
    Thanks for any help
     
  2. Terry_w

    Terry_w Member

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    Logically it would be the date of the contract. Which is the date of signing usually.
     
  3. TILT

    TILT Member

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    In Qld a contract does not does not become binding until the signed contract is returned to the purchaser or his solicitor..
    A purchaser can't act until he has a copy of the contract. NSW might be different.
     
  4. RPI

    RPI Member

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    Not quite correct. The contract is effective on the date of the last signing or initial. BUT you can withdraw from the contract if you communicate your withdrawal of the offer prior to the seller or their agent informing you of acceptance. The agent or seller only needs to call you and say your offer was accepted and that is sufficient.

    Finance date starts from the date of the contract. If they took too long then just get your solicitor to ask for an extension to the finance date.
     
  5. JDM

    JDM Property Lawyer

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    Not sure where you're coming from here. There is no contract until acceptance has been communicated.

    The contract date should be the date that acceptance was communicated. In practice, the contract is usually dated on the date that the last party signed. If there is a delay in acceptance being communicated after the last party signed, the contract should be re-dated.
     
  6. Jess Peletier

    Jess Peletier Mortgage Broker, Perth

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    Probably more to the point is that 14 days is a pretty tight finance clause, especially if you're not on the ball with valuations. No room for anything to come from left field, missing docs etc either.

    28 days is a bit more comfortable.
     
  7. Qlds007

    Qlds007 Broker,full time investor

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    Sorry Tilt that is incorrect.

    Once the contract has been signed by both parties and the deposit holder the agent needs to convey acceptance to the buyer.

    Often the original signed contract does not arrive at the solicitor office until half way thru the finance period.

    Yes 14 days is fairly standard in Qld but i prefer 21 days and then another 21 for settlement.

    Think my record is 6 days coming upto Xmas but you certainly need the co-operation of the financier.

    Cheers
     
  8. Jamie M

    Jamie M Mortgage Broker - Oz Wide

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    14 days is generally fine for finance - providing your broker is efficient, the valuer gets access to the property shortly after the contract is signed and the broker uses a lender that's equally quick (some lenders are shockers and will drag out the process for a looooong time).

    The thing with many QLD contracts is that finance is 14 days - but settlement is a month from signing the contract (which means it creeps up very quickly after the finance is approved).

    Cheers

    Jamie
     
  9. cu@thetop

    cu@thetop Member

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    This is also my understanding of the law.
     
  10. JDM

    JDM Property Lawyer

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    I feel like I'm missing something here given two other Lawyers have opposing views to mine.

    A contract requires (among other things), offer, acceptance and communication of acceptance. Without these three things, there is no contract.

    I don't understand the position that a contract is 'effective on the date of the last signing or initial' as there has been no communication of acceptance. What is the basis for the contract being 'effective' if the contract has not been validly formed at that time. We are not talking about a deed here.
     
  11. cu@thetop

    cu@thetop Member

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    Acceptance needs to be communicated. If the contract is signed by all parties but one is not aware the other has accepted their offer then the offer can be withdrawn anytime up to notification of acceptance. Best for the agent to let the offeror know of acceptance immediately.
     
  12. jerrybee

    jerrybee Member

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    The house I just bought was being sold by someone that lived several hours away and they insisted on signing in person. So when I signed the agent said to leave the contract date blank, and they filled it in several days later when one of their agents had time to drive up to see them.