Before you Sign that Contract

Are you about to sign a Contract to purchase a House or Land?

Buying a property for most people is one of the biggest decisions you will make.

So, it is important before you sign on the dotted line, to ensure the contract contains the correct information to avoid potential issues or delays during the conveyance, and additional costs.

It is also a good idea to have the contract checked by your solicitor or conveyancing officer prior to signing.

A Buyer should consider the following before signing a Contract:

  • Is your full name noted and is it spelt correctly? Often a Buyer’s middle name is not included and this causes delays with settlement as the financing bank requires the property to be in the buyer’s full name. It is best to use your full name as noted in your licence or passport;

  • Is the purchase price correct?

  • Are you able to pay the deposit by the due date? If not, you may need to request the date for payment of the deposit be extended by an extra day or two to ensure you are not in breach of the Contract by not paying the deposit on time;

  • Is the Contract subject to finance? If you require finance from your bank to complete the purchase, the contract should be subject to receiving finance approval;

  • Is the Contract subject to a Building & Pest Inspection? If you want the right to terminate for issues that a building and pest inspection may reveal, the contract should be made subject to a building and pest inspection;

  • Is there a known easement over the property? If so, this should be noted on the contract. If you are unsure, you should make enquiries with the seller or agent so you are aware of any encumbrances on the property;

  • Are there any included or excluded chattels from the sale? If so, then these should be noted in the Contract. Dishwashers and solar panels are just a few items that are often noted as either included or excluded from a sale.

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