What legal protection do I have?

You have two contracts; one with the agent and one with the buyer. The items listed below are just a number of the more common ones. Your solicitor can give you in-depth advice.

 Agency agreement protection

You are protected by Common Law and Legislation in every aspect of the agency agreement.

Protection in the standard agreement  

1. The purchasers are entering into a legal binding contract subject to conditions. They can’t just walk away because they’ve changed their minds. If they breach their obligations, speak to your solicitor immediately as you could cancel the contract and keep the deposit. Always check with your solicitor first before you do anything.
   
2. If the purchasers settle late, (any Friday after 4pm) you may request penalty interest as it will be assumed that settlement took place on the following Monday.
   
3. If you’re selling rural real estate, check with your accountant to verify what the GST implications are for you. In normal circumstances where you are registered for GST, that should be added to the asking price. The standard contract makes provision for GST
   
4. When the encumbrances are noted on the Sales and Purchase agreement the buyer cannot object later.
   
5. If the parties can’t settle because of damage or destruction of the property, defect in Title or some of the conditions can’t be fulfilled, then the deposit must be paid back to the purchaser but there is no interest payable on it.
   
6. If you are selling with tenant, the information must be filled out at the front of the contract.
   
7. Make sure your chattel list is correct.
   
8. If the purchaser is not paying the balance (settling) in time you can charge penalty interest. However, if you receive rent from a tenant, that will be deducted from the interest.
   
9. The purchaser can ask you to rectify the title if there is a problem (it is called requisitioning). You are protected in the sense that if you are bona fide and can’t rectify the title the purchaser has the option to cancel the contract or to purchase with the defect. The procedure in the contract must be followed to the letter so you need to employ a solicitor who specialise in land law and conveyancing.  

Other legislation

According to the Contracts Enforcement Act, all negotiations of land must be in writing, which creates a paper trail in the event of any possible disputes.

Legislation regulates the payment of the deposit and the taking of commission. If the deposit is not paid in time, you must let your solicitor know, because you need to send a formal letter before cancellation of the contract.

What safeguards can we put in place?

Choose a knowledgeable consultant. We would love to work with you!

You can protect yourself by checking the Sales and Purchase agreement carefully, especially the chattel list. Demand a deposit.

Keep your insurance payments up to date. You are carrying the risk until the buyer takes possession. If you have a Unit Title the body corporate must pay the insurance.