We have set out below important information of which you should be aware.  Please read the information carefully and do not hesitate to contact us if you have any queries.  After you have read this, please complete, sign and return the Confirmation of Instructions form (Parts A, B & C) to our office.

THE CONTRACT

A copy of the contract is enclosed.  Please check the contract carefully to ensure that no alterations have been made since you signed it.

There are a number of expressions used in the contract which you may not be familiar with.  If you require any contract terms or expressions used in our correspondence to you to be explained, please do not hesitate to contact us.

YOUR OBLIGATIONS UNDER THE CONTRACT

The contract provides that “time is of the essence”.  This means that performance of a contractual obligation, for example, being in a position to effect settlement by the specified date must be strictly adhered to.  If the obligation cannot be met by the specified date, then an extension of time must be formally requested.  If we are unable to complete settlement on the due date and no extension has been granted by the Buyer, the Buyer may either terminate or affirm the contract and claim damages from you.

Accordingly, it is imperative that all necessary transfer and mortgage release documentation is completed and signed well ahead of the settlement date. 

Under the Property Agents and Motor Dealers Act 2000, a certain procedure must be strictly followed when a buyer is presented with a contract to sign.  Failure to follow the correct procedure may result in the buyer being able to terminate the contract at any time prior to settlement and claim their legal and other costs incurred.  We have requested the agent to provide us with confirmation that the correct procedure was followed.

If the contract provides that the property is sold as “vacant possession” the property must be vacant at the time of settlement.  If the contract shows a tenant the current tenant is to remain in occupation of the property until the lease expires.  Would you please provide us with your copy of the Tenancy Agreement and any Guarantee as we are required to deliver same to the buyer at settlement.

Under the terms of the contract, unless otherwise agreed between you and the buyer, any fixtures, fittings or chattels not included in the sale which are left on the premises after settlement has been effected will be deemed to be abandoned by you and the buyer may appropriate, remove or dispose of the same.  Any costs incurred by the buyer in the removal of such property or any substantial rubbish may be recovered against you. The contract may state that certain chattels, fixtures and fittings are included in the sale.  You should read the contract carefully and note what chattels, fixtures and fittings, if any, are to remain or otherwise with the property after settlement. 

The buyer is entitled to survey the land to establish the location of structures on the land or adjoining land.  If there are errors in the boundaries then the buyer may be entitled to claim damages or terminate the contract. 

The contract provides that the property is to be at the buyer’s risk from 5:00 pm on the next business day after the date of the contract, although, whilst continuing in possession, you are required to use the same with reasonable care and you may not do anything regarding the property (or tenancies) that may significantly alter them or result in later expense for the buyer.  We recommend that you do not cancel your building and contents insurance until after settlement has been effected in case the buyer does not insurer the property and there is a loss.

KEYS AND INSPECTION

It is usually most convenient for all keys for the property to be left with the real estate agent prior to settlement.  If you do not hear from us to contrary, would you please arrange to do that.

Would you also please provide with the keys a written record of all codes for all combination locks as well as any devices for control of security systems (if any) on the property.

After giving you reasonable notice, the buyer is entitled to enter upon and inspect the property before settlement for the purpose of ascertaining its condition. 

SAFETY SWITCH 

Please note that as from 1 March 2008, domestic rental accommodation in Queensland must have a safety switch which has been installed by a licensed electrical contractor.  If a safety switch is not installed, the landlord may be liable for fines in excess of $1,000.

If you do not have a safety switch installed, you are in breach of the Act and could be fined.  We strongly recommend you arrange to have one installed urgently so that you can indicate same on the enclosed form.

Under the provisions of the Electricity Regulation 1994 you are obliged to notify the buyer in writing as to whether an approved electrical safety switch has been installed in the residence.

We have enclosed a Notice to Buyer.  Would you please indicate on this form, by ticking the applicable box, whether or not you have an approved electrical safety switch installed.

SMOKE ALARM

From 1 July 2007 it was mandatory under the Fire and Rescue Service Act 1990 that smoke alarm(s) which comply with Australian Standard AS 3786-1993 be installed in every domestic dwelling.

If the dwelling was built before 1 July 1997, there must be at least one 9 volt battery operated smoke alarm installed on or near the ceiling on any store –

• Between any area contained bedrooms and the rest of the house or unit, eg hallways; or
• On a storey not containing bedrooms on the most likely evacuation route from the storey.

If the dwelling was built after 1 July 1997 or significant renovations (more than 50%) were made to the dwelling after that date, it should have at least one 250 volt (hard-wired) smoke alarm.

If you are unsure as to whether installed smoke alarm(s) comply with the Act’s requirements, please contact the Department of Emergency Services, Queensland Fire and Rescue Service or visit their website at www.fire.qld.gov.au for further information.

If the contract indicates that compliant smoke alarms are installed in the residence would you please confirm that on the enclosed form.  If the contract indicates that smoke alarms are NOT installed this means you are in breach of the Act and could be fined.  We strongly recommend you arrange for smoke alarm(s) to be installed immediately so that you can indicate same on the enclosed form.  Please note that if you do not have smoke alarm(s) installed, you are in breach of the Act and could be fined.

ENCUMBRANCES

Please note that if the property is subject to a registered or known unregistered encumbrance or interest which is not disclosed in the contract, the buyer may terminate the contract or claim compensation. 

YOUR DISCLOSURE OBLIGATIONS

You have an obligation under the contract and at law to disclose certain matters to the buyer.  There are a number of questions in the enclosed Part A – Questionnaire which addresses these issues, however if you are aware of any other matter not covered in the Questionnaire, please let us know immediately.  Should you breach your disclosure obligations, the buyer may be entitled to either terminate the contract, or complete the contract and claim compensation from you (see Seller’s Warranties” in the Terms of Contract)

IDENTITY

All lawyers are governed by guidelines set down by the Queensland Law Society which oblige us to confirm your identity.  Would you please provide us with copies of two forms of photo identification e.g. a driver’s licence, passport or student card (This will not be necessary if you are already known to us as a past or current client).

If the contract has been signed under a Power of Attorney please forward a copy of the Power of Attorney document to us and confirm that it has not been revoked.  If the transfer documents will also be signed under the Power of Attorney, then it must be registered prior to settlement.

 CONTACT PERSONS

Your purchase will be handled by a paralegal with the firm identified by your file number and will be supervised by Joseph McMahon who is the Principal of the firm.  Our office is open from 8.30am to 5.00pm every weekday.

We are confident you will find our services to be of the highest professional standard.  However, should you have any difficulty with either our service or the conduct of this matter and are unable to resolve that difficulty with the person handling your file, you should not hesitate to contact Joseph McMahon who is the Principal of this firm who will investigate the problem and contact you to talk about it. This will be at no extra cost to you.

Please let us know if you have any important time limits or if there is any item of particular importance or concern to you regarding the property.  Don't hesitate to keep in regular contact and ask us if you are not sure about anything.

Please note that we cannot give you advice regarding the commercial viability of the transaction or the tax, succession or matrimonial consequences or financial implications. If you require such advice, we suggest you contact a specialist such as a financial advisor or your accountant.