Understanding the Contract of Sale

The contract of sale, just like any other contract, is an agreed, signed and stamped document of terms and conditions in between the buyer and the seller with proof o buyer’s property ownership. If you are buying your property in Australia, there is a definite need for you to be able to understand and digest the information stated in the Contract of Sale.

In a highly developed country like Australia, where all commercial or non-commercial related transactions are carried out under strict laws, the contract of sale is important to legally sell the property for the buyer to buy. Once the property buyer and the seller get on the common grounds of property agreement, the real estate agent would often provide the buyer with a Contract of Sale that is compulsory by the law to be signed by both parties in order to make a legal property transaction. It is important to make sure that the contract is prepared meticulously by one party, and checked thoroughly by the other in order to avoid any discrepancies, errors, or any omissions and protect the interests of both parties fairly.

Often it is observed that in order to settle down the property transaction swiftly, most of the buyers and the sellers hire conveyances and estate agents to get a standard contract form. Although in accordance with law, these people are allowed to make the contract and get it signed by both parties, these people are not qualified solicitors or lawyers due to which, they are unable to provide solid legal advice to the parties involved in the transaction.

This contract is basically a checklist and although most of the points are listed below herein, it should never be used for any legal transaction. Always involve a lawyer in your property transactions for the most accurate checklist. Make sure to get the contract signed by a certified solicitor or lawyer who can check the contract and communicate with you its essential matters. Here is the checklist:

Address & physical dimensions of the purchased property

Plan & reference Num.

List of non-fixed items like curtains, portable cabinets, and other fixtures

Details of the settlement

Inspection reports

Loss or damage of property prior to settlement

Legal notice in case of breach of contract

Special conditions put forward by the vendor such as:

Late penalties occurring due to delays in the settlement

Property to be taken in the current condition with any possible defects

Easements and restrictions

Check for any easement in the contract where one party is allowed to use the land of another party for some common interests. One example could be the neighbor using the driveway land of an attached property.

Cooling-off period

A cooling-off period allows certain leverage to the buyer to withdraw from the contract within a specific period of time.

There is an important consideration that needs to be made in between the buyer and the seller. Nothing should be confirmed until the contract gets signed. Any considerations taken into the contract should be discussed before signing it, such as the property purchase price, condition of the proportion, liabilities for any damages, property insurance, etc. Once the contract is signed by both vendor and the purchase, the deal is considered final and confirmed, hence making it next to impossible to make any changes afterwards. In case of any changes, it is essential for parties to be agreed to make any amendments. If any one party, either the buyer or the vendor, is not agreed to make changes, the contract remains final and the buyer is liable to follow all conditions in the checklist in accordance with the state laws.