The Dangers of Liquid Paper
Liquid paper is a very useful piece of stationery. But it has no place in offices that prepare contracts – so in our office, it’s nowhere to be seen.
The use of liquid paper (a.k.a. white-out) invalidates legal documents. After all, there’s no knowing what that white veneer could be concealing. Landgate, the banks and the Office of State Revenue will reject documents that have been liquid-papered.
Once liquid paper is used to correct a mistake on a contract, the document needs to be completely redone. Every party to the transaction needs to re-complete their part of the document before it can be lodged with the relevant authority.
Throw an overseas seller or a FIFO worker into the mix, and this seemingly minor inconvenience could well delay settlement, leading to penalty interest and very disgruntled clients.
Of course, agents and settlement agents know this. But unlike us, most clients don’t work with contracts every day.
As an agent, it’s worth going over what’s required of the client when filling out documents such as the Offer and Acceptance – including the simple requirement to avoid liquid paper.
Ensuring you don’t let liquid-papered documents pass by unnoticed is one step towards ensuring a smooth settlement experience for all involved.