March 24, 2022

An insight into the Contract of Sale

When it comes to selling or buying a property, the Contract of Sale is the most important document involved.

This legally binding agreement maps out the terms and conditions of the sale along with critical information such as the date of settlement, the address of the property being sold and the identity of the buyer and seller.

So, let’s take a little look at what’s involved in the contract of sale.

Who prepares it?

In a standard sale of a residential property, the Contract of Sale is prepared by the selling agent. They then provide a copy to the buyer and the seller, who should read it closely and also seek any legal advice required.

Conveyancers and legal representation

If you’re buying or selling a property, you should appoint a legal representative in the form of a lawyer or conveyancer.

They will comb the contract of sale to ensure everything in the document is accurate and the conditions meet your needs.

Your legal representative might also have additions they wish to make, and due diligence they intend to carry out before the agreement is signed.

Clauses and conditions

The Contract of Sale is where any conditions related to the sale of the property are included.

Common conditions and clauses include:

  • The sale being subject to finance within a set period
  • Pending pest and building reports
  • Subject to bank valuation

Inclusions and exclusions

Also known as a chattels list, inclusions and exclusions document the fixtures and fittings that come with the property, such as curtains, carpets etc.

Standard information

The Contract of Sale will also include standard information about the property, the buyer and the seller.

This includes:

  • The address of the property, including any relevant lot numbers
  • The name of the seller and the purchaser, including their address
  • The sale price
  • The date the deposit is due, and the deposit amount
  • The date of settlement
  • Any conditions
  • Whether the property will be offered as vacant possession or subject to a rental agreement with a rental occupier.

Different in each state

While the above is a guide, contracts of sale can actually be different in each state depending on the applicable law.

That’s why it’s a good idea to have a legal expert on hand to help you navigate the terms, conditions and obligations of the contract before you sign on the dotted line.

Meanwhile, you should read the Contract of Sale carefully. 

Not only is it a good idea to familiarise yourself with the contract, the dates listed and the terms and conditions attached, it’s worth double checking because what you sign is legally binding.

Looking to buy or sell?

If you’re considering buying or selling a property, why not chat with one of our friendly Eview agents on 1300 438 439?

You can also view our list of currently available properties here.