Conveyancing Law - Contracts are Crucial to Property Transactions

Before a real estate transaction can be finalized and the ownership of a property transferred, both the buyer and the seller must come to an agreement regarding the terms of the sale. Both parties reach this final agreement based on the provisions and conditions contained in a document called the contract of sale of real estate. The contract of sale of real estate is a written document that is required by law to accompany every real estate transaction in Australia. This contract may be drafted by a licensed conveyancer and will take into account the interests of both the buyer and the seller.

Purpose of Real Estate Contracts

The purpose of a real estate contract is ensure both the buyer and seller know exactly what is being bought and sold. The contract establishes an agreement between both parties and details each party's rights and obligations in accordance with the agreement. In order for the contract to be of effect, each party must meet the conditions and terms provided in the contract. If either party fails to do so, the contract may be considered null and void. In this way, the interests of both parties are protected.

Typical Contract Conditions

If any of the conditions of a contract are not met, neither party will be obligated to continue with the real estate transaction. Conditions typically contained in a contract include: contingency for an inspection, insurance coverage of the property, and the amount of time allowed between the offer and acceptance or counter offer. The contract also provides a time that the buyer will take possession of the property. If the contract has been signed, no changes can be made to the terms or conditions of the contract without the approval of both parties.

Signing the Contract

When a written, signed offer to purchase a property has been made and the seller has counter-signed, both parties have legally entered into a binding agreement or contract. If the contract has not been prepared by or reviewed by a licensed conveyancing Brisbane solicitor, the best interest of both parties involved could be jeopardized. Most buyers and sellers do not fully understand the meaning and effect of the conditions contained in the contract of sale of real estate. For this reason, it is imperative that buyers and sellers speak with a licensed conveyancer prior to signing any contracts or documentation.

A licensed conveyancing QLD solicitor can help buyers or sellers ensure the terms of their real estate contract afford them the legal protection they need. A conveyancing solicitor can help the buyer or seller have control of the real estate transaction and ensure that they are not placing themselves at risk.