In this blog/video we discuss  what we do when we provide pre-contract advice to our QLD property buyers! We explain what you need to know...

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Hi everybody - George Sourris, Empire Legal.

Today's topic: Your pre-contract checklist – what to look out for when buying a property in Queensland!

Hey guys, George Sourris, Empire Legal, back for another blog. Hope 2025 has been a cracker for you all so far. Bigger and better year than last year. Let's get into it.

So today, I want to talk about pre-contract advice. We review standard REIQ contracts as a part of the conveyancing process. Today, I'm going to explain the main things that we look for when we review contracts for clients here at Empire Legal.

All right. So, section 1 - property and contract. What are you buying? A house, a unit, or vacant land? That's going to affect the type of contract that is used. When we check this, we also check that it's the current version of the REIQ contract. This is because if it's an old version, the laws may not be accurate.

It's always best to be using the current version of the contracts, and we'd suggest if it's an old version, that it be redrawn up on a new one.

Next, we check the contract date. The contract date will be the date the last party has signed and each party has agreed on all terms. You will not be bound by the contract until you or we receive a fully executed copy. This means that if you sign and return the contract, you can withdraw your offer at any stage up until the fully signed contract has been dispersed. Of course, providing the sellers haven't already signed!  

We then take note of the square meterage as noted on the contract for the property you are purchasing. Now, if this is a unit, we recommend that you satisfy yourself with respect to the total area that forms part of the lot you are purchasing.

For example, in some body corporates, the car park is included as part of the lot. In others, it's common property or exclusive use, allocated to the lot. The registered plan will indicate the size of the lot you are purchasing and which areas are included as title for the lot. The CMS or Community Management Statement provides all this information. If you can't get a copy of this from the seller or the agent, we can order it for you from the Titles Office.

If you need help with that, just let us know. 

Alright, next step, Purchasing Entity. We want to bring to your attention the purchasing entity or entities. So,  traps for young players - not putting the FULL names (including middle names) of all purchasers correctly reflected on the contract. So that's super important guys, you want to make sure that's all correct because once it's signed up, you cannot change the purchasing entities unless it's like a minor typo, we just have to contact between solicitors. 

Alright, next - purchase price. If this does not correctly reflect the offer you're making, you can cross it out, write your new offer, and initial where the changes are made, or ask the agent to change it on DocuSign.  

Next step, insurance/risk. Although the seller has a continuing obligation until settlement to take reasonable care of the property, from 5.00pm on the next business day after the contract is signed, it will be at your risk.

So if this is a house, you want to straight away get full replacement value with an insurer. This is super important guys, and of course if you're getting a mortgage,  that lender will need to be noted as First Mortgagee.

If it's a unit, standard process is that the building replacement is covered by the insurance of the body corporate, however, each case is different, so we suggest at a minimum, you make sure that all the internals of the lot, for example, carpets, curtains internal blinds, and public liability is sorted out on your end and you have cover.

Okay, next step. Time essential. So time is of the essence of the contract. This means that you must perform all of your obligations under the contract strictly by the due date. For example, you need to be ready, willing, and able to settle on the settlement date, otherwise, the seller can terminate or affirm the contract.

In both cases, the seller would be able to claim damages from you, and your deposit is at risk.  

Next, cooling-off. So, contracts are subject to a statutory 5 day cooling off period where you can terminate the contract if you change your mind, unless of course you waive your cooling off rights, which is a separate form. You can learn more about cooling-off here.

If you do terminate under cooling off, there's a 0.25% of the purchase price penalty that gets deducted from the deposit if you terminate in that manner.

Guys, next section is Deposit, you've got an Initial Deposit and a Balance Deposit, so you put in the amounts there. It's all subject to negotiation and the time frames of when they're paid. For cyber security reasons, make sure you telephone the deposit holder and verbally verify the account details before you transfer any money.

If you don't pay any Deposits on time, you as the buyer will be in breach of the contract and the seller may terminate the contract, your deposit forfeited, and you could even be sued. So that's a not negotiable. We put all this in writing to you guys, this whole pre-contract advice as part of our service here at Empire Legal.

We strongly recommend you send the remittance for your payment of the deposit through to the deposit holder, ASAP, and also to us once you have made payment. That's important.

Alright, moving along, next section, Finance. The contract is subject to you obtaining a loan from the lender listed on the contract on term satisfactory to you by 5pm on the due date, providing all three sections are filled out. You've got to take reasonable steps to obtain finance, which includes making an application without delay to the bank. You can learn more about finance here.

And if you don't obtain a loan on satisfactory terms to you, you can elect to terminate the contract, your deposit refunded, and the matter at an end. If this isn't filled out, no finance clause, and you've got to find the money. You can't terminate if you don't have the funds.  

Okay, next section is Building and Pest. Similarly, if this section is not filled out, the contract is not subject to building and pest, and if you find any issues, you're not allowed to terminate the contract. You have to buy. Alternatively, if it is filled out, you've got until 5pm on the due date to be satisfied with the reports from a licensed building and pest inspector, and if you're not happy with the reports, you have to act reasonably. You can learn more about building and pest here.

You may terminate the contract by giving notice before 5pm on the due date. Your deposit would be refunded to you and the matter at an end. Something like a leaky tap is not acting reasonably, but termite, water damage, major problems would be.

Okay, we're nearly there guys. Next section is smoke alarms. So, we strongly recommend before you sign a contract, you check with the agent whether the smoke alarms are compliant with the property. It's now law, so  compliant smoke alarms have to be put in the property. If they're not, you as the buyer inherit this risk and you have to sort that out after settlement. 

There is a section in the contract that if written notice is given before settlement, 0.15% of the purchase price can be adjusted in the buyer's favour in the event that there's not compliant smoke alarms. Only way to find that out though is to go and inspect that with an electrician that's licensed to give you that advice. 

So easiest way around it is get the smoke alarm certificate beforehand if you can, don't have to worry about the inspection. You can learn more about smoke alarms here.

Alright, the next section we check is Settlement. So there's a settlement date or a time frame, for example, 30th of June 2025, or 30 days from the contract date. You've got to make sure you're ready to settle, otherwise you'll be in breach of contract and you can risk the deal falling over and you being pursued - i.e. sued!

In saying that, by default, we now have clause 6.2, which is the settlement extension notice, which allows either party to extend for up to five business days, as long as they give notice in writing before the settlement . We've done a whole other blog on this if you want to know more but that's a good one. It can buy you some extra time.  Bit of a trap. Some agents cross this section out, so you want to make sure that's in there. This is something we check for you as part of the pre-contract advice at Empire Legal.

We let you know about Registration Fees. So there's extra fees, registration fees that are payable to the titles office to transfer the land. 

Next we let you know about Transfer (formally know as Stamp) Duty. So how much that's going to cost you because these are all extra fees that the Government charges that you can't get out of that you have to pay. So you have got to factor that in. Usually your broker or your banker will tell you about this, but we let you know as well. 

Next section we check - included chattels, excluded fixtures. So, chattels are, if you were to turn the house upside down and shake it, anything that fall out. So, we check that for you and advise what's there. If it's blank, all the chattels must leave the property and all the fixtures must stay. 

Next section, pool safety. So we check there's a compliant pool safety certificate (if there is a pool on the property) and if not, let you know the consequences there. You can learn more about pool safety here. 

Then there's a Special Conditions section. This one can have all different things in it from subject to sales, due diligence, all sorts of stuff. Sunset clauses. So if there's anything in there, we pick this apart and give you that tailored legal advice so that you know what you're signing.  

Next section is Tenancy. So, if there's tenants in the property or if it's going to be subject to vacant possession, keeping in mind the new laws with the rent increases, that can only happen every 12 months now, so we give you all the legal information you need to know about these two sections. 

Then, easements/encumbrances - matters affecting the property. This is where statutory easements are put in. For example, sewer mains, stormwater mains, manhole covers, etc. If you've got any intended future use of the property to say put a pool in or develop, this section is super important, guys. You want to make sure you're able to do what you want to do with that property.

So, we check that out and if there's anything funny in there or on the Title search, we'll let you know. 

Next section is buyer beware for searches. So in Queensland, as it stands, it's buyer beware. Where you have to do your own due diligence. If you have any particular concerns about the property, this is where you want to let us know so we can give you tailored special conditions or legal advice. 

A really important one here, guys, is council building approvals or final inspection certificates. So in Queensland, there's no obligation to provide them, by the seller. So if we do a search and we find that there maybe isn't a final approval or building approval, can't terminate the contract unfortunately, there's no standard terms that allow that. So if you're concerned about this, we can do these searches up front.

Signing the document. So to sign the contract, 99 out of 100 now are signed electronically via DocuSign, however you can also wet ink sign, we give you the instructions on how that process works.  

So, we're going to wrap it up there guys. Standard REIQ contract, pre-contract advice. If you're buying, it's not negotiable, mission critical. This is a service that's part of our fixed fee conveyancing package. All of our pricing is on the website, we are super transparent.

We've got over 2,500+ 5 star Google reviews too! 

Pick a conveyancing team that you can trust. This is seriously important. You need to pick the right people to look after you. This is all we do. We want to help you.

If you're a real estate agent, a mortgage broker, or a banker, and you have clients that need help, we want to help these clients. Get in touch with us today.  I hope that helps.

Agents, brokers, bankers - you can also pass this on  to your clients as a nice little bundle of what to look out for at the pre-contract advice stage of buying a property in Queensland.

Thanks guys.  

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If you have any questions, you can email me: george@empirelegal.com.au. 

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Thanks for reading everybody. See you on the next one.

Ladies and gentlemen, please keep in mind that all advice is general in nature and does not constitute legal advice. This is authorised by George Sourris, Empire Legal, Brisbane, Queensland, Australia.

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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.