Land for Sale in Queensland—What Happens If You Break the Contract?
Whether or not it’s your first time to buy land for sale in Queensland, the experience can be different every time. There’s no guarantee that things will go according to your plan. One minute you are dead set on buying a certain property, the next minute you can’t wait to check out a different one.
This scenario is not unusual and buyers like you aren’t always to blame. Maybe you suddenly discovered something about the property that influenced your decision. But what if you already signed and submitted the contract? Would you still be able to back out? What will happen next?
Understanding Conveyancing
Contract signing is part of conveyancing, which is a major step in the purchase of land for sale in QLD. As soon as the seller receives the signed contract from you, a five-day cooling off period rolls out. During this period, you are allowed to break the contract without facing any legal action apart from being required to pay 0.25 per cent of the land’s purchase price.
This amount is quite small compared to your down-payment, and it’s a justifiable corollary of default because the seller has made some losses during your transaction. The cooling off period, however, does not apply if you purchase the land at an auction.
What If You Break the Contract beyond the Cooling Off Period
The law is quite clear about the cooling off period being the only time you can break a real estate contract without facing penalty. So, expect things to get a little bit rough if you break the contract past this period. Unless you have a valid reason for doing so, there’s a chance the seller will take this to court to force you to a settlement.
You can back out from the deal without being charged of contract breach if you can prove that the land is defective. This is why it’s important to have the property carefully inspected during conveyancing to find out if there are issues that the seller didn’t declare. Even if the seller is unaware of these issues, you still have the right to break the contract for that reason.
Before signing any documents, especially the contract, you need to know that the seller can come after you for damages. After all, they are also investing resources in the sale in the form of legal fees or real estate commissions they owe to their broker or selling agent. This is why it is very crucial that you don’t enter any kind of agreement with a seller unless you are absolutely sure you’d like to purchase the property.
One way you can avoid all these problems is by consulting with a top real estate company like Lion Land Marketing. Because they only offer the best pieces of parcel in QLD, you have a higher chance of landing the perfect land for your preference and budget. They will also guide you every step of the way so you only make decisions until all considerations have been made.
