Warning statements |
For real estate agents and pastoral house agents
You must give the buyer a copy of the warning statement, attached to the contract, before they sign any contract. A warning statement stresses the need for the buyer to get independent legal advice and an independent valuation of the property they are about to buy.
You must attach the warning statement to the contract for sale of residential property (vacant land, or land and already existing house). The agent or vendor must draw the buyer´s attention to the warning statement when giving the buyer the contract and warning statement, regardless of the method by which the contract is given to the buyer; that is: in person, or by mail, or by electronic form or fax.
The buyer´s attention to the warning statement need only be given on the first occasion that a residential property contract is presented for consideration and signing.
If the buyer signs the Warning Statement, it is taken that the buyer´s attention has been drawn to the warning statement and cannot terminate the contract on the basis that their attention was not drawn to the warning statement.
If the buyer is not directed to the warning statement and it remains unsigned or is not attached to the residential property contract, the buyer may terminate the contract without penalty. They should get independent legal advice before deciding to terminate a contract.
Making mistakes in sending
Before both parties sign the contract
If you make a mistake sending the documents electronically, the amendments allow you to fix mistakes if both parties have not already signed the contracts.
If you do not send the documents in the correct order, the amendments allow you to correct such an accident or error.
You can give the buyer a notice that:
- indicates the error
- recalls the proposed relevant contract documents
- advises whether new documents comply with the requirements.
You can do this only before both parties sign the contract.
After both parties sign the contract
Failure to ensure that the warning statement remains attached to the relevant contract, once it has been signed by both parties is an offence, but does not give the buyer the right to terminate the contract on that ground.
The contract´s cooling off period commences once the seller gives to the buyer a signed copy of the completed relevant contract and runs for 5 business days commencing on the day that the contract is given to the buyer, if it is a business day, or otherwise commences on the next business day.
Other requirements
Agents must be aware of the requirements of the Electronic Transactions (Queensland) Act 2001 if they intend to fax and email contract documents.
The Act is part of a national scheme to facilitate the use of electronic transactions generally. It requires all parties to agree to using an electronic communication method before using it.
Related links |
Last reviewed 21/11/2011 |
 |
