Qld Sales Contract from Sellers Perspective

[Scout]

I have just given birth to a contract to sell a house and geez was it the most difficult thing ever! I won't go into the details of the birth pains

With a nice full glass of French cognac at my side to sooth the frayed nerves, I now wonder about the following: At what stages of the contract can a seller withdraw from the contract without penality?

Cheers

 

[sailor]

If the purchaser is unable to meet any of the conditions...for example if there is a subject to finance clause, and they can't get finance. There are others.

So you are having cold feet....what's chilling you?

 

[Kevin Hockey]

With a nice full glass of French cognac at my side to sooth the frayed nerves, I now wonder about the following: At what stages of the contract can a seller withdraw from the contract without penality?

Cheers

You can't. Didn't you put it up for sale to sell it?

Kev
www.gogecko.com.au

 

[geoffw]

In Queensland, as I understand, once a price has been agreed by both parties, then exchange is deemed to have taken place.

This is a week later, so probably no use to you.

I don't know about Queensland, but I am between exchange and settlemt for my "flock of bats", selling in NSW.

For me, the ideal outcome would be that the purchaser withdraws. Then, I would get 10% of the proceeds but still keep the property.

However, as the seller, if I withdrew, I'm not sure the penalty. I understand that I would be liable to pay him all reasonable expenses. As well as legal, accounting, and inspection fees, that could also possibly include trips to Queanbeyan (from Sydney) and other fees.

Like Kevin says- I put it up for sale to sell it. I have some regrets. It's been a good investment. But if I can't draw on the extra equity to move forward, then it's a dead duck.

 

[Kevin Hockey]

In Queensland, as I understand, once a price has been agreed by both parties, then exchange is deemed to have taken place.

Well.....we don't call anything in the process, Exchange. Once all parties agree to price and conditions and everyone has signed the agreement it becomes a contract. In most circumstances the solicitor has not been involved to this point. The signed contract is now sent to the legal reps for both parties to deal with the conditions until it becomes Unconditional (all conditions having been met), often after 14 days, until Settlement on the agreed date.

Obviously each contract is unique to itself and conditions may vary and settlement may be at any time all parties agree to, however 14 days from unconditional and 30 days for settlement is most common.

Kev
www.gogecko.com.au

 

[David E-Noosa]

Once all parties agree to price and conditions and everyone has signed the agreement it becomes a contract

Not to pull my learned friend up but its more than that.

PAMD Form 30c states on page 2 of 2

Both the buyer and seller are bound by the contract as soon as the buyer or their agent, lawyer or personal representative receives a copy of the signed contract.

In any dispute concerning the commencement of the cooling off period, it will be up to the seller to prove the buyer received a copy of the contract.

Laymans terms, they must all get a copy of the fully signed contract for it to be binding and enforecable. A form is signed stating they got their copy.

btw this PAMD Form 30c MUST be signed prior to signing the contract, its a long convolted mess now with sign this don't sign that, who got the fax, who flung dung ..... bla bla bla. One day they might make it all easy for us hey Kevin.

 

[Rixter]

Its a rather simple process here in WA. The Offer & Acceptance (O&A) is a double side A4 size sheet of paper. Basically the purchaser makes an offer on it and sets out any additional conditions on the reverse side, then the purchaser signs and dates it.

The RE Agent then presents the O&A to the vendor and also signs it if they accept the offer price, and set conditions. The RE Agent then forwards a copy to each parties settlement agent/solicitor.

Once signed by both parties it then becomes "Under Offer" status, until such time as all O&A conditions are met.

Once those are met and has gone unconditional it goes through the normal settlement process to be effected