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.

Here’s why.

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.

About the Author

Peter Fletcher

Peter began his real estate career in 1985 selling tin shacks and red dirt in Kalgoorlie. Moving to Perth in 1989 he quickly moved into agency ownership. By 2006, Peter had built a thriving agency managing over 600 rental properties. He then sold the business, taking time out of the industry to complete Honours in a Bachelor of Arts. Peter is now the Managing Director of Residential Settlements in Burswood and an active Army reservist. Peter has had just one hot shower since the 10th of May 2008.