There is a huge number of things to consider when buying a house, and most of them are more important than paint colours. Buying real estate involves the legal transfer of property from one person to another.
That transaction is managed by a Contract of Sale, which can differ in some ways from state to state in Australia, especially around vendor disclosure requirements.
Contract of Sale
In general, a contract of sale will include the following:
- Conditions of the sale, such as financing information or additional building and pest inspections and the dates that these must be completed.
- The contract date.
- The names of the vendor and purchaser.
- The property’s address.
- The amount of deposit that must be paid and the date that it must be paid.
- The sale price of the property.
- The date of the property settlement.
- Whether the property will be available as a vacant possession or if it is subject to a lease.
- Any fixtures or fittings that are included in the sale (Generally, items that are fixed to the property or into the grounds of the property, such as pergolas, built-in barbecues, built-in playground equipment, lighting fixtures and blinds, are normally included in the sale of a property. They will remain on the property after the sale and form part of the overall purchase price).
Form 1 and Cooling Off Period
The cooling off period can be used by the purchasers to conduct further building or pest inspections or ensure the decision to purchase was not made in haste.
The cooling-off period expires at the end of the second clear business day after:
- The contract was made if the purchaser received the Form 1 prior to making the contract, or
- The Form 1 has been served on the purchaser if the purchaser received the Form 1 after making the contract.
Although a purchaser is entitled to withdraw from a contract within the cooling off period, the vendor is bound upon entering into contract with the purchaser.
Once the cooling off period has expired and provided there are no other conditions in the contract, the purchaser is bound to the contract and must pay a deposit. A settlement date will have been negotiated and the purchaser is obliged to follow through with the purchase.
The conveyancing process is the transfer of the legal title of a real property from one party to another and it must be completed for a real estate transaction to be completed. The settlement date are generally between 4-6 weeks upon signing the contract, however, it is not uncommon for either party to request a variation to the settlement date.
Here at Straits Lawyers, we can assist you with all legal matters associated with the sale or purchase of real property. If you are looking to purchase or sell your property and would like to find out more about your rights and options, Straits Lawyers are here to help. Simply send us an email at firstname.lastname@example.org or give us a call on 8410 9069 to arrange an appointment for an online interview.
Alternatively, if you would like to conveyance a property, Straits Lawyers are now offering online services at https://straits-lawyers.square.site/product/conveyancing-/2?cs=true.
Please note that this article does not constitute legal advice and Straits Lawyers will not be legally responsible for any actions you take based on this article.