Information For Buyers

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An Expression of Interest is not a legal document.  A contract will be binding upon acceptance from the seller.

When filling out a contract, the deposit you put in is not the deposit required by the bank.  It is the amount to secure the property.  Basically, it shows the seller that you're committed to the purchase and if you do find a cheaper house that you like better, you won't “walk” out on their property.  Different agents will have different deposits, there is no set amount, some will ask for $10,000, others $25,000.  For a rule of thumb work on 2-5% of the purchase price.

Once your contract is accepted, you will need a Conveyancer or Lawyer to handle the legal transaction involved in the changing of the title, searches for easements and encumbrances. The Conveyancer will need to be qualified to practice in the state (QLD, NSW, SA, VIC, etc) that you are purchasing in. 

You need to prepare before buying a home at auction. There is no cooling-off period for buying at auction. If you are the successful bidder at the auction, you will have to settle the contract - the sale is unconditional. This means you cannot have any conditions, such as:  subject to finance subject or building and pest inspection. 

Before the auction, make sure you:  

• inspect the property 
• arrange your finance
• get a property valuation 
• do your own research of the market 
• get a copy of the contract 
• get legal advice about the terms and conditions in case you’re the successful bidder.  

Make sure you ask the agent about how much deposit they will ask for (as a percentage of the winning bid) and how you’ll need to pay it (a personal cheque, bank cheque or deposit bond is usually okay).

In Queensland, it is illegal to give a price indication on an auction property.

Once you enter into a contract, except at an auction, you may be entitled to a cooling off period, in which it is legal to change your mind on the purchase.  Each Australian state and territory legislates a different cooling-off period and financial penalty associated with cancelling a residential sale. Contract cancellations need to be made in writing and within the specified period of time, either in person, by email or by fax. 

- Queensland: You have five business days from the day both seller and buyer sign the contract. If this falls on a weekend or public holiday, the five-day period starts the next day. The cooling-off period ends at 5 pm on the final business day. The seller may deduct a financial penalty of 0.25 per cent of the purchase price from your deposit if you opt out.

Depending on how much deposit for the property you have, you may or may not be required to take out Mortgage Insurance.  This insurance basically covers you if you were to default on the loan. 

A building and pest inspection is recommended for any buyer to conduct, generally after the contract is signed.  You will have a period, usually around 7 days, to consult with the solicitors any issues with the property that might be flagged.