Recently, we handled a case where the seller, without seeking legal advice from a lawyer, signed an “unconditional” commercial property contract worth nearly $2 million with the buyer and agent at an auction, hoping to sell the property quickly.
As a result, the agent made errors in the contract and in handling tax matters, completely overlooking issues like GST. At settlement, the seller suffered a significant loss of over $180,000 in GST (the ATO would still pursue the seller for payment). Since it was an auction, the contract was immediately unconditional upon signing, leaving no room for amendments. Representing the buyer, we certainly wouldn’t compromise, as it was the seller’s responsibility to address these issues beforehand. The contract we received was entirely unconditional, and any attempt by the seller’s lawyer to modify it came too late. My duty is to protect my buyer client’s best interests, not those of the seller.
Sometimes, potential clients might say, “I know everything about property, just handle the conveyancing. There’s no need to review the contract—just finalize the transfer.” But when you’re about to use your life’s savings to buy or sell a property, can you really afford to take the risk of signing a contract without thoroughly reviewing it?
