In this blog we explain the difference between Expression of Interest (EOI) vs Signing a Contract for QLD Property.

We discuss the legal implications of both options, as well as a few tips & tricks - so you can be armed with the knowledge you need to navigate the negotations stage of buying a property in Queensland.

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Hi everybody - George Sourris, Empire Legal.

Today's topic: Should I sign?

Expression of Interests vs signing a contract? 

What is an Expression of Interest (EOI)?

Purchaser's are invited to submit their highest and best offer by a deadline to be presented to the vendor with the terms of the purchase. So, this includes things like: the purchase price, the deposit amounts, if there's going to be a building and pest clause or a finance clause, and what sort of timeframes, the settlement period, and any special conditions - for example, subject to sale, pet approvals, if it's a unit, etc.

It is designed so that the agent can showcase the offers from the prospective buyers with the conditions attached, to the vendor for their consideration. 

However, not all agents use this strategy. 

Alternatively, Agents may require a buyer to sign a contract first to then be presented to the vendor.

Now, if the vendor countersigns, then the contract is binding as soon as it's dispersed to the parties or their lawyers. 

So - there is massive risk here, right? If you're signing a contract before you get it legally reviewed by a lawyer; especially if that contract is say, unconditional and you've waived cooling off - you could be stuck up a creek without a paddle because you didn't realise what you are signing. 

We can help. 

As always, we suggest you obtain pre-contract advice from our team prior to signing a contract. 

Okay, so what have we learnt here? 

You can sign an expression of interest. It's not a legally binding contract obliging you to purchase. 

It is just an expression of interest with the pricing and terms that you are prepared to move forward with a formal offer in the future. 

So don't be scared to sign an EOI and take caution if you're signing a contract of sale.

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Thank you guys. 

See you on the next one.

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We can help…

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Note: all information is general in nature and as each matter is unique please contact our office for tailored advices: the above does not constitute legal advice.