There are times when real estate contract disputes may arise after a closing contract is signed. If a dispute does come up, it may be a good idea to talk with a litigation lawyer Brisbane who can tell you more about your rights and how the dispute process may play out. What is the dispute process like, and what can you do to increase your odds of a successful outcome?
What Is the Nature of the Dispute?
As part of the estate litigation process, it is important to understand what the dispute is about. If an inspection shows that the home has pest or structural damage, it may be the buyer's right to back out of the contract without paying any penalties or owing any money to the seller. However, if the buyer pulls out of the contract because he or she doesn't have the money to close the deal, he or she could be liable for financial damages.
Buyers Have Five Days to Reconsider Their Position
When buying a house in QLD, the buyer has five days to back out of the deal with minimal penalty. In fact, he or she would only owe .25 percent of the purchase price to terminate the deal and walk away with no future obligation to the seller.
A conveyancer may be able to tell an individual who is buying a home more about this provision and how it can help someone who isn't sure about following through with a purchase contract. It is important to note that a property bought at auction is purchased as-is, and there is no cooling off period for the buyer.
What If a Contract Was Breached?
In the event that a buyer doesn't have the funds prior to taking possession of the house, the seller may sue for damages. The seller typically has until 5 p.m. the day after the scheduled closing date to reserve his or her rights going forward. He or she generally has about a week after that to decide whether or not to actually go to court as opposed to letting the buyer out of the contract.
If a seller decides to allow the buyer out of the contract, the two sides part ways with the home going back on the market. If the seller decides to go to court, a buyer could be liable for legal fees, commissions and other costs related to putting the home back on the market. A buyer may have to pay the difference between the home would have sold for and the amount it did sell for if that amount is lower.
It is also possible that a buyer and seller will come to new terms that will eventually allow the sale of the house to go through. For instance, it may be possible to extend the settlement date to allow a buyer time to find a new lender.
Other Issues Can Be Settled Prior to Close as Well
The buyer and seller may get together to discuss any issues with the home that may have caused the buyer to back out of the deal. For example, the seller may agree to spray for termites or have any dead trees in the yard removed. The seller may also agree to fix any structural issues before the buyer moves in.
The two parties can also decide to split the costs or otherwise come to terms that are beneficial without the need to go to court. Even if a case does end up going to court, it is possible that the two sides settle before a trial starts or before a decision is reached by a judge.
Buying a home is a complicated process, and problems should be expected at some point before the sale becomes official. When issues do arise, it is important to know where to turn for help to ensure that they are settled in a fair and favorable manner for both the buyer and the seller.