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Buying in Qld

Discussion in 'Real Estate' started by mongrel dogs, 15th Nov, 2006.

  1. mongrel dogs

    mongrel dogs New Member

    Joined:
    17th Aug, 2006
    Posts:
    3
    Location:
    Sunshine Coast
    We are looking at purchasing in SE Qld, and as we haven't ventured out of NSW it's a bit daunting. Could somebody please clarify which part of the deposit is lost if the contract doesn't go ahead.

    We have recently returned from a field trip and have been told some conflicting information by some REA's.

    Also can anybody recommend a good Solicitor in Qld.

    Many thanks
     
  2. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi MD

    Same as NSW- if you rescind the contract within the cooling off period you forfeit 0.25% of the purchase price. This is basically a form of compensation (and rightfully so) for the vendor, as the property has been taken off the market and cannot be sold to anyone else during the cooling off period.

    My experience of Qld solicitors has been less than satisfactory, but I'm sure there are others here who can help with recommendations.

    Good luck with your purchase- where are you looking to buy?
     
  3. TryHard

    TryHard Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    863
    Hi Mongrel Dogs

    We use Liz Inder at Kelly Lawyers ph 3268 7199 Brisbane Legal Firm - Kelly Lawyers

    She's a very experienced conveyancer - you'll pay a bit more than the 'McDonalds' converyancing firms but from experience, worth every cent, if you hit an obstacle in the process.

    Cheers
    Carl
     
  4. MJK

    MJK Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    280
    I was absolutly blown away with the professionalism, comunication and low cost of KRG Conveyancing. 1300 796 488 :) :) :)

    Make sure you understand that you are only risking your deposit if the contact has gone unconditional. If it is still subject to finance or a pest inspection and they come back unfavourably you can pull out without cost if it is within the time frame allowed to check these things.

    MJK:D
     
  5. mongrel dogs

    mongrel dogs New Member

    Joined:
    17th Aug, 2006
    Posts:
    3
    Location:
    Sunshine Coast
    You are such a wealth of knowledge - many thanks Jacque. We are looking around the Maroochydore area.

    Thanks for the recommendations Tryhard and MJK - I will be giving them a call.

    My main confusion is the $1000 deposit which I was told needs to be given with the signed contract. I have spoken to another QLD REA today who told me that isn't payable until the Vendor accepts the offer - but isn't that when the full deposit (5 or 10% which ever is in the contract) is payable??

    Getting myself more confused... definately more research needed !
     
  6. TryHard

    TryHard Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    863
    Hi again MDogs

    This link might be useful :

    Fair Trading Qld

    You might want to download their booklet :
    Fair Trading Qld - General Consumer - Real Estate Realities

    The bottom right of page 19 deals with deposits. I'd say your agent has asked for the $1,000 as a sign you're not a tyre kicker. They can't keep your $1,000 if a contract doesn't eventuate, and it would form part of your eventual deposit if you do strike a deal. I don't believe you are obliged to give them that money.

    In my experience, I have always told the agent I only have $20 on me, happy to leave at the time of signing and will be back with a cheque for the full deposit once we know the seller has signed. The agent will always be trying to set the deposit amount high, at least to cover the amount of commission they are owed on the deal. Its my understanding (someone will correct me if 'm wrong), they can't insist on any particular amount/percentage. I tell them my funds are tied up elsewhere and it needs to be a $ x deposit (something sufficient to cover everyone's interests including the agent's :) ) In most cases I have told them I only have $10,000 available as a deposit, and that usually hasn't presented a problem as long as the REA can see you are definitely going to proceed and not stuff 'em around. Otherwise 5% is still a safe and 'normal' sounding figure :)

    I'd be doing as much DD as possible to avoid needing to rely on the cooling off period - on top of losing "up to 0.25% of the purchase price of the property" (say $1,300 on a $500K property) I imagine most agents up here aren't real experienced in handling the hassles involved.

    Have fun :)
    Cheers
    Carl
     
  7. Bundy

    Bundy Active Member

    Joined:
    21st Aug, 2005
    Posts:
    43
    Location:
    Mermaid Beach
    As the purchaser, you are in control of how much or how little deposit you put on the contract. You do not have to put an initial deposit down at all if you want to submit a contract. In the terms and conditions, I generally nominate how much money I wish to put down as the deposit with a clause payable within 48hrs of the contract being accepted and signed by both parties. I generally offer 5% deposit.

    Agents will generally try to make this amount 10 or 20% to cover their commission if the contract falls over. If the contrcat falls over due to other clauses (building, pest, cooling off period) etc, you are entitled to your deposit back. If you decide not to fulfill the contract "without grounds" then you are liable to be sued by the vendor. The commission side of the transaction relates to the vendor and the agent, not to you.
    Hope this helps

    Bundy :)
     
  8. Wayne

    Wayne Member

    Joined:
    27th Sep, 2006
    Posts:
    23
    Location:
    SE QLD
    An agent in QLD will always try and get a big fat cheque off you to staple to the contract when he takes it to the vendor.

    Its the old 'work on greed' principle. He/She has a much more likely chance of convincing you (the vendor) to sign an offer document if you see a full 10% cheque stapled to the top left hand corner. Any half ruthless agent in QLD will try this on for size.

    When I buy... Its a $1000 cheque, when we as buyers signand the balance of 5% within 24 hours of the vendors signing (if buying through an agent). And if buying privately, we just negotiate whats easiest and best for everyone concerned. I feel better off dealing privately, as I know some smarmy agent is'nt going to try and use my deposit against me down the track.

    You actually dont have to leave ANY deposit in QLD when you buy if you sign a contract. But you wont be taken seriously if you dont.

    Cheers