What stage does fines apply if breaching sales contract - QLD

[eggnog]

For a queensland sales contract, is there a stage during the settlement period where it becomes binding on both the seller and buyer. At what stage is this at for both parties.

I ask because I would like to get early access to do a renovation. But I would like to begin renos when the contract becomes binding to the seller so that they do not renage on the deal and keep the benefits of any reno's I do. What is the consequences of renaging on a contract for the seller.

 

[vaughan]

Contracts are "binding" when both parties have signed, excepting any "get out" clauses that might be in the contract -- typically these are death, bankruptcy and insanity of either party, but also may include special conditions from the vendor. My recent purchase had a clause that the sale could be rescinded if repairs exceeded 5% of the purchase price, so if while waiting for settlement the place was vandalised, the vendor could just pull out rather than spending $100K to fix it up to complete the sale.

(BTW If you think death of vendor during settlement is unlikely: search the forums, it happens regularly.)

If you want early access to renovate, get that condition put into the contract.

Search the forums for some of the issues surrounding early access and renovations. Summary: there is no upside for the vendor to allow it; there are also risks for the buyer.

As for the vendor benefiting from your renos, here's a thought: you rip out the kitchen etc, vendor dies, sale is cancelled, you get your deposit back. You have to restore the house to original condition at your cost.

 

[RPI]

1. get the early access in writing.
2. IF you have complied with all your performances under the contract and the seller won't settle, you can seek an order for specific performance. This basically means that the court orders everything necessary to effect the transfer from them to you. They would also have to pay your party/party costs if you are successful.
3. Many solicitors are very wary about advising their client to grant early access for renovations

I have access to 3 different suites of legal precedents which each contain a Library of special condition clauses, not one of them contains an early access for renovation. The closest is outlined below.


Possession before completion
Subject to the terms and conditions of standard condition 8.5 the seller will permit the buyer to enter into occupation of the property on at a licence fee of $ per week until the date of settlement.