A Contract of Sale is typically not something you come across everyday. So knowing what to include and why can be tricky, so here’s some things you will want to include in your Contract of Sale as well as some tips to consider…
Put your clauses in
There are two clauses that are a given, the finance clause and the building and pest clause.
What you’re saying is, I will have these two conditions covered BEFORE I commit to buying this property. This is to protect you incase there is any issues.
The finance clause
Typically the finance clause is 21 days however if you have a ‘fully assessed’ pre approval then you could look at 14 days or even 7 days.
This means, if you can’t get the finance approval from a bank within the 21 days you can cancel the contract and you’re not locked into the purchase.
The building and pest clause
The building and pest can be 7 or 14 days and this is where you pay for a building and pest inspection on the property to make sure there are no defects or issues. This will cost you some money however the price you pay (between $400 to $800) could save you thousands in the future. If there are defects with the property you can either terminate the contract or renegotiate the price depending on you.
Included Chattels
This is where you can specifically include anything that you would like the property to come with. For example there may be a pool table that you love in the home now, you may want to negotiate to include the pool table in the purchase amount , you would also list it in the Chattels to ensure it is left behind with the home.
Special conditions
There can be many other ‘conditions’ to your contract, these can be ‘subject to the sale of a current property’ or subject to soil tests ect. these will be a case by case basis if they are required.
Get your solicitor to check it
Your solicitor is there to help, they can check over the contract before you sign to make sure it covers everything you need for your circumstances and in most cases it’s as easy as emailing the unsigned contract to them to check over.
Where to next?
If you’re thinking about buying a property but have no idea where to start then check out my First Home Buyers Program, it’s an online workshop which will take you from saving for your First home through to the purchase. Check it out Here.
Still not sure? Book an obligation free appointment with me, we can meet face to face or via video conference so we can talk about your personal situation and what you can do now to make sure you’re ready to buy sooner. Book Here