Contracts

For further information on matters to consider prior to completing the Buyer's details on the Contract, please refer to the section titled "The Offer and Acceptance Contract" on the Handy Hints for Buyers submenu on the Buyers page

With regards to completing the Offer and Acceptance contract please note the following:

  • The Buyer's FULL legal names should be shown together with their address.
  • The Buyer is to indicate whether they are purchasing the property as Tenants in Common or Joint Tenants.
  • Joint Tenants - The ownership of land by two or more persons where there is a right of survivorship i.e. on the death of one joint tenant, the surviving joint tenant becomes the sole proprietor.
  • Tenants in Common - Where there is a desire for two or more persons to hold the land in undivided shares. On the death of one party their share forms part of their Estate and is distributed in accordance with the terms of the Will.
  • If purchasing as Tenants in Common then the shares should be shown. If no shares are shown then there is a presumption that the shares are equal ie 50/50.
  • Address of the property to be completed.
  • Legal description of the property to be completed from a current Title Search.
  • List "chattels" that are sold with a property eg window treatments, floor covering and light fittings. If there is a shed or dishwasher being sold with the property we recommend that this be shown on the contract. Similarly if the Seller intends to remove anything from the property eg a set of curtains then this must be written on the Contract so that the all parties are aware that the item is being removed.
  • Complete the purchase price
  • Complete the deposit section. The deposit can be any amount. When calculating how much deposit you need to pay take into account that you will also need to pay your stamp duty PRIOR to Settlement, so make sure you leave enough monies to cover your stamp duty liability.
  • Complete the settlement date. The settlement date can be for example, 28 days from Finance Approval or you could select an actual date. Make sure you consult a calendar to ensure the date does not fall on a weekend or public holiday.
  • Complete the finance section by writing in the name of the Bank the Buyer intends to obtain finance from, the latest date for finance approval (14 to 21 days from acceptance is a recommended time frame) and the amount of loan required.
  • Write in the special conditions in the blank space on the front of the contract OR you can write the special conditions on an annexure and then state on the back of the contract that "Annexure A/B/C/D etc forms part of this Contract". Most Real Estate Agencies have preprinted Special Conditions and Annexures. Read these very carefully to ensure they meet your requirements.
  • If they do not cover your requirements then amend or replace them remembering that each special condition should contain the following elements:
    • What needs to be done
    • Who is going to do it
    • Who is going to pay for it
    • When does it need to be done
    • What is going to happen if something is discovered
    • Who is going to pay to fix it
  • There is no requirement to have special conditions however most buyers will want at least a Termite Report or Building Inspection Report.
  • All parties should initial any special conditions or comments written on the second page of the Contract.
  • The Contract should be signed by the buyer in the presence of anyone over the age of 18. The witness must be someone who is NOT a party to the transaction. The Buyer should date the contract.
  • The Buyer must also sign to confirm they have received a copy of the Joint Form of General Conditions and they must nominate a settlement agent/solicitor and sign underneath this appointment.
  • If the property is a strata, the Buyer should ensure they receive and read the FULL Strata Disclosure PRIOR to signing the Contract. Once the Strata Disclosure has been read, the Buyer should sign the acknowledgement on the Contract.
  • All special conditions and annexures must be signed by the buyer, witnessed and dated. Any amendments must be initialed.
  • The Contract is then presented to the Seller who will decide whether or not to accept your Offer as is, or the Seller may choose to make a counter offer and change some of the conditions.
  • The Contract is then returned to the Buyer to accept, or counteroffer the changes.
  • Each change and counter offer should be initialed and dated.
  • Once the terms and conditions have been agreed by all parties the original Contract is provided to the Buyer's settlement agent/solicitor with a copy provided to the Seller's settlement agent/solicitor.
© Haskins (2006) | Terms of Use | Privacy Policy | designed and hosted by aussiehome.com