Understanding and negotiating suitable terms of contract is an important step in the purchase process when buying property. Buyers should be aware of all inclusions and any easements or covenants on affecting the property and proposed settlement or completion dates.
Ensuring that the contract accurately reflects the purchaser and seller and defines the correct property is of vital importance and will eliminate the need for costly changes to the agreement at a later date.
It may seem trivial, but entering a contract that contains a simple error such as an incorrect spelling of a name – where it doesn’t match other identification documents such as drivers’ licenses or birth certificates – can in fact create undue stress and issues down the track.
Similarly, where a contract doesn’t specify a complete list of inclusions, problems can occur upon settlement when items that the purchaser assumed were included are in fact no longer with the property.
Your solicitor or conveyancer should undertake thorough searches on your proposed purchase and make sure that you can “perform” within the terms of the contract.
Your legal representative should ensure the following:
- Any land tax adjustments.
- That completion dates are suitable to the purchaser, particularly if they are selling another property in order to buy.
- Inclusions match the buyers’ expectations.
- Any release of deposit clauses are accurate and workable.
- Development consents where the building has undertaken recent additions.
- Drainage and sewerage diagrams.
- A survey of the building ensuring that it does not encroach on an adjoining allotment.
- Confirmation of vacant possession if required.
Your legal representative will be well-versed with the contract and will understand all the clauses that affect your purchase. You need to liaise with them in terms of the inclusions, your expectations and suitable settlement time.