Selling Property? Here’s What You Need to Know
As the property market continues to heat up, sellers should be aware of several new obligations regarding residential contracts. Here’s a summary of key points to consider before completing the sale of your house or land.
Compliant Smoke Alarms
You must install compliant smoke alarms in any domestic dwelling. If you fail to do so, the buyer can claim an adjustment at settlement equal to 0.15% of the purchase price. On a $750,000 contract, this equates to an adjustment of $1,125. Ensure working smoke alarms are installed to avoid potential complications.
Pool Compliance
You are obligated to provide the buyer with a pool safety certificate. Under the contract, this certificate may include:
- A pool safety certificate;
- A building certificate used in place of the Pool Safety Certificate under the Building Act 1975 (Qld); or
- An exemption from compliance due to impracticality under the Building Act 1975 (Qld).
Failure to hand over a certificate at settlement allows the buyer to terminate the contract.
Deposit by Direct Debit
With the rise of electronic payments, deposits are now considered paid on the day the buyer makes the payment—not when funds clear in the destination account. If the buyer fails to pay by the due date:
- You cannot immediately terminate the contract.
- You may issue a notice requiring payment.
- Termination is only allowed if payment is not made within two business days of issuing the notice.
Seller Warranties
New contracts specify that sellers do not “warrant that the present use is lawful.” For example, if a property is being used as a gym, this does not guarantee its lawful use as a gym. As a seller, disclose if you are unsure about the lawfulness of the property’s current use.
Extension of Settlement Date
Either the buyer or seller can extend the settlement date by giving written notice anytime up to 4 pm on the initial settlement date. The new settlement date cannot be later than five business days from the original date.
Need Assistance?
At GLG Legal, we aim to simplify the buying and selling process. Contact our team today to see how we can help you.
📞 Phone: (07) 3161 9555
📧 Email: info@glglegal.com.au