We discuss in this episode whether a buyer can onsell in an off the plan contract and the complexities of onselling, emphasising the importance of understanding the specific contract terms and seeking pre-contract advice, the significance of a 10% deposit as a security measure, and the need for proper disclosure in off-the-plan contracts. We also address the current challenges in Queensland's property transaction system and the practical issues that often arise in on sale contracts, particularly for third-party buyers. Specifically, this episode will emphasise some important steps buyers should take in the on-sale process such as: • Seeking pre-contract advice from qualified lawyers in the off the plan space to understand the on-sale process and their rights and obligations. Is it possible at all? It depends. • Ensuring they understand the practicalities of on-sale contracts, including the importance of a 10% deposit for security, stamp duty implications, and legal costs. • Engaging a lawyer experienced to prepare the on-sale contract with the third-party buyer for compliance under the legislation, and understanding that settlement will be a paper settlement as currently there is no work around in PEXA for third party transfers. The ability to onsell depends on the specific contract with the developer, and buyers should seek pre-contract advice to understand the terms and conditions. We explain three possible scenarios for on-selling, including a process called a first right of refusal and what that process looks like, highlighting a warning to buyers concerning a claw back post completion that may apply to your contract. We also discuss the practical issues that often arise in on sale contracts that can be missed, particularly for third-party buyers, including the importance of pre-settlement inspections, the assignment of manufacturers' warranties, and the rectification of defects, which are typically the responsibility of the original buyer but may not be adequately addressed for the end buyer.
https://www.youtube.com/watch?v=hUVPtE2BMPo
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Posted By Despina Priala
Despina Priala has practised in property and commercial law on the Gold Coast for over 25 years and has extensive experience in this area.
Updated : 25th June 2024 | Words : 311 | Views : 232
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