A case before QCAT has recently
confirmed that the fee for terminating a property purchase contract during the
cooling off period (which is 0.25% of the total contract price) is payable by
the proposed Purchaser to the Seller if the seller requires payment even if the
proposed purchaser has not paid a deposit.
The proposed Purchaser had signed an
REIQ Contract of Sale for a property on the Gold Coast. They paid the deposit
by way of personal cheque which the proposed purchaser cancelled before it had
been cashed by the selling agent. The proposed purchaser attempted to argue
before QCAT that because no deposit had actually been received by the seller or
their agent that the buyer was not required to pay the termination fee. QCAT
rejected that argument and the decision from QCAT was that the buyers were
required to pay the 0.25% termination fee. If you are considering purchasing a
property, we can advise you regarding the insertion of additional special
conditions into contracts, for instance providing for a Due Diligence period
which enhances the proposed purchasers rights to terminate the contract without
penalty.