The Devil is in the (Contract) Details: Why Diligent Conveyancing Matters
Buying or selling a property is often one of the biggest financial transactions a person will ever make – so it’s surprising how many people rush through the legal process, unaware of the risks that can arise from seemingly minor oversights. As a lawyer practising in property law, I’ve seen how easily things can go wrong when contracts aren’t reviewed carefully or compliance is taken for granted. Here are two recent examples that highlight just how critical good conveyancing advice can be.
Example 1: The Case of the Missing $100,000
A family attended a Saturday morning auction, excited to bid on their dream home. After some tense back-and-forth, they secured the winning bid at $950,000. Cheers and congratulations followed, and all parties sat down to sign the contract.
Later, during the conveyancing process, a startling discovery was made: the signed contract of sale listed the purchase price as $850,000 – not the agreed $950,000. Somehow, a version of the contract with an earlier draft price had been signed by all parties. No one had picked up the discrepancy at the time.
Here’s the kicker. Once signed, the contract could potentially have been considered to be legally binding at the recorded purchase price – $100,000 less than what the seller thought they had sold the property for. Both buyer and seller had to seek legal advice and negotiate an outcome to avoid the threat of a drawn out legal battle and extensive costs.
So, who’s responsible in situations like this? While the parties bear some responsibility, this scenario also illustrates why it’s so important for conveyancers to carefully review contracts before they’re signed. A professional who is diligent, detail-oriented, and present during the signing process can help catch mistakes that might otherwise become expensive – and legally binding – errors.
Example 2: Cooling Off on a Dodgy Deal
In another case, a couple agreed to purchase a property after a quick inspection. But after instructing us to act on their behalf, we began to uncover some red flags. The property was in worse condition than they had realised, but more importantly, the Form 1 – a key disclosure document required under South Australian law – was incomplete. A critical annexure was missing.
Our advice? Request a new, fully completed Form 1.
Why does this matter? Because under the Land and Business (Sale and Conveyancing) Act 1994 (SA), when a fresh Form 1 is issued, it resets the buyer’s statutory two-business-day cooling off period. This gave our clients a chance to step back, reassess, and ultimately withdraw from a deal that could have been a financial trap.
This case underscores the importance of full and accurate documentation. The Form 1 isn’t just a formality – it’s a legal requirement designed to protect buyers by disclosing relevant details about the property, such as encumbrances, easements, or zoning changes. When something’s missing, the risks can be significant.
The Bigger Picture
These examples share a common thread: in both situations, simple oversights could have had major consequences. The role of a conveyancer or property lawyer isn’t just to tick boxes and file paperwork – it’s to act as a safety net for buyers and sellers navigating complex, high-stakes transactions.
If you’re buying or selling property, don’t cut corners. Read every document carefully (or better yet, have a legal professional do it for you). Ask questions. And most importantly, don’t be afraid to slow down and get advice. The costs of haste and inattention can far outweigh the price of good legal guidance.
In property, as in life, the fine print matters.
Need help with your next property transaction?
At TGB Lawyers, our experienced property law team can guide you through every stage of the conveyancing process – protecting your interests, minimising your risks, and making sure nothing slips through the cracks.
We’re here to help… because property deals should never be left to chance.
Get in touch on (08) 8212 1077 or
Email: smichele@tgb.com.au