Purchasing property involves more than just an agreement between a buyer and seller. Negotiations on price, property condition, and other terms often occur. Once finalized, both parties sign a legally binding contract of sale, usually facilitated by solicitors or conveyancers. It’s crucial to have your own legal representative to ensure the contract is sound and that the transaction proceeds smoothly. Since the process can vary by state, expert advice is essential.
Contract Exchange
Once both parties sign, the contract is "exchanged," making it a legally binding agreement. At this point, the buyer typically provides a deposit.
Who Prepares the Contract?
The contract of sale is usually prepared by a conveyancer, solicitor, or real estate agent, depending on the complexity of the sale. For private sales, the real estate agent often drafts the contract, which is then reviewed by the legal representatives of both parties.
What’s Included in the Contract?
Key details that should be included are:
Vendor and purchaser names and addresses
Property address
Deposit amount and due date
Sale price
Settlement date and conditions (e.g., finance, inspections)
Whether the property is vacant or subject to a lease
Inclusions and exclusions (fixtures, fittings, etc.)
Key Considerations After Signing
Signing the contract is just one step. Several tasks need to be managed between exchange and settlement:
Finance: The buyer should immediately secure financing from their lender.
Conditions: Any conditions outlined in the contract (e.g., inspections) must be fulfilled.
Handover: A pre-settlement inspection ensures everything is in order before the keys are handed over.
Potential Red Flags
Be cautious of issues such as:
Lack of negotiation on price
Missing property condition disclosures
Low bank valuations
Unsuitable possession terms (e.g., subject to a lease)
Final Thoughts
It’s wise to review contracts early in the buying process to avoid complications with properties that may not meet your needs. Always ensure each clause is thoroughly reviewed and negotiated where necessary. Since property transactions are major financial commitments, simplifying the process is key.
When you need expert assistance, the experienced agents at V Nation Corp are here to help. With in-depth market knowledge, we make your property transaction as smooth as possible. At V Nation Corp, we’re your trusted partner in buying or selling your home.
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