Posted by admin on 8 March 2010
Bought a property in recent times? Here in the Smart State we must have one of the most complex, confusing and convoluted contract processes in the western world. Warning statements, disclosures by the dozen, many of them in BIG BOLD LETTERS. We’ve written here before about the failure of these so-called consumer protections.
Last Friday night we met with a couple who wanted to buy their first home. It’s 7pm at the home’s kitchen bench, another offer’s been received, the auction’s the next day, so no time to waste. And out we come with the 5 documents over 22 pages. Nervous do you think? Do they understand fully the details and implications? Is it a fair environment to put anyone in?
Surely consumer protection is firstly about informing people? How can they be fairly informed by 22 pages of reading on a Friday night? And this isn’t including the 2 page Sustainability Declaration the seller’s provided or the building and pest inspections they still need done. Or the title/council/body corp/main roads/EPA/flooding etc searches their solicitor will ask them to check.
One option being canvassed is the idea of a disclosure document, prepared and paid for by a seller before they put their property on the market. Kind of like a “roadworthy” you need before you can sell your car. It could include all the usual info and even a building and pest report, and be available to each and every buyer when they first enquire. If you don’t understand something, you can ask your lawyer/valuer/townplanner/banker/Uncle Jack before you decide to buy…
Then we can have simple contracts that everyone can follow.
What do you think of this idea? Got another solution to the masses of contract paperwork?We’d love to hear your comments.
Tags: Brisbane home buyers, building inspection Brisbane, consumer protection, contract of sale, selling a house Brisbane, selling an apartment Brisbane, Sustainability Declaration Queensland
Posted in Brisbane's sales market, real estate marketing, trends in Brisbane property | 2 Comments »
Posted by Rob Honeycombe on 20 May 2009
and here on page 493...
No-one would deny that buying and selling real estate is an important legal issue. These are usually peoples’ biggest assets and the risks are too high for any of the process or documentation to be taken lightly. But we don’t believe quantity equals quality and with our current sales contracts at 21 pages (apartments – 15 for houses) you do have to wonder. It’s all for consumer protection we’re told…. page after page of warning statements and disclosures.
One page in the wrong order and the contract may be worthless. The first page must be a warning to get a valuation and legal advice (unless you read the Body Corp act which says its disclosure must be the first page). Then there’s the form to make sure the agent’s disclosed their fees, the section with the name of the body corp secretary… and on it goes.
So now we use another form to tell a buyer what’s attached (listed in one order) and the process of reading and signing (in yet another, different order please). Then we have another form at the end for them to acknowledge that they signed in the right order, stood on the correct leg while reading, and held their head at an incline of precisely 82.5 degrees while signing.
I promise we’re not making this up – only the last bit.
While the industry backed another truckload of paper up to the office door the government finally agreed something had to be done. Various departmental officials were annoyed that those darned buyers don’t seem to be reading this stuff… Ya wonder!
When a review of legislation was kicked off in 2007 we looked forward to some simpler documents. And a couple of weeks ago (yes it’s mid 2009) the state government responded to that review, agreeing the paperwork could be made simpler. But not yet.
Why?
“Implementation should be delayed until mid 2009. This is because as part of the Ministerial Council on Consumer Affairs (MCCA), the Standing Committee of Officials of Consumer Affairs (SCOCA) has commissioned research by an independent consultant (UniQuest Pty Ltd, via University of Queensland) into pre-contractual disclosure under the Uniform Consumer Credit Code, with the goal of developing an evidence-based disclosure model which addresses the needs of consumers.”
Oh dear…
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Tags: consumer protection, contract of sale, legislation
Posted in Brisbane's sales market, real estate marketing | 2 Comments »
