Advice For Contracts Of Sale In Victoria

When it comes to buying or selling real estate in Melbourne, having a solid Contract of Sale is crucial. Trust Select Legal to provide you with professional guidance and expertise in creating or reviewing Contracts of Sale, ensuring a seamless and secure transaction. Click the “Get a Free Quote” button now and experience the peace of mind that comes with working with Select Legal for your Melbourne real estate needs.

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What Is A Contract Of Sale?

A contract of sale outlines the details of a property transaction, including the names and address of buyers and sellers, terms of the sale, and what it includes. Once signed, is a legally binding agreement between the purchaser and the seller.

When it comes to buying a property, there is more involved than merely completing the sale between vendor and purchaser. Negotiations over price, the condition of the property and other compromises are common.

Once both sides have negotiated the deal, a contract of sale is signed by both the vendor and the purchaser, which is the legally binding contract of the sale and the particulars of the sale.

Who Prepares The Contract Of Sale?

Using your own solicitor  (Select Legal) is crucial in ensuring the contract negotiated has been checked and verified correctly and therefore the transaction is completed successfully. In more complicated cases, Select Legal can also negotiate on your behalf  to ensure the contract is in line with what is required and agreed upon. 

Which solicitor actually prepares the contract of sale largely depends on how the property is being sold and how complex the requirements are. For example, if the property is being sold privately, the solicitor  generally drafts the contract, which is presented to the potential purchaser to make an offer. This is why it is so important to choose the right solicitor, who has the experience to draft and deal with a solid contract.

Contracts are checked and approved by solicitors or conveyancers for both parties, and negotiations are usually carried out by the legal representatives, together with the real estate agent.

The contract should always be prepared by a qualified lawyer or licensed conveyancer for one party, and carefully checked by a lawyer or licensed conveyancer acting for the other. This is to ensure that both parties’ interests are protected.

What Should A Contract Of Sale Include?

The signing of contracts of sale is essential as it provides both buyers and sellers with a mechanism to establish their individual terms prior to any exchange of goods or services. Furthermore, these agreements safeguard against fraudulent acts and ensure compliance for both parties involved.

The contract of sale should provide clear and specific information. The list should include all parties and representatives, along with their full address and the sale price.

A contract of sale for real estate may be contingent on borrowing capacity, building inspections and the ability to dispose of existing property.

A contract of sale should contain various details, such as:

  • The names and addresses of the vendor and purchaser. 
  • The selling agent
  • The address of the property sold.
  • The initial deposit amount and due date.
  • The purchase price.
  • The date of the property settlement
  • Conditions of the property settlement.
  • Inclusions and exclusions. 
  • Fixtures and fittings, furnishings and chattels.
  • Certificate of title information
  • Encumbrances 
  • Whether the property is available as ‘vacant possession’ or ‘subject to a lease’
  • Any other property that is being sold as part of the deal

Each State and contract has different requirements for what is necessary to include So if in doubt, consult Select Legal. It’s a legally-binding agreement and once signed, it cannot be undone. This means you need to ensure it includes all the correct information.

Cancelling A Contract Of Sale In Victoria

A contract of sale is a legally binding agreement between two parties whereby one party agrees to transfer ownership of their property to the other. The seller and buyer have agreed to a price and timeline for the transfer of property. If the buyer does not pay the agreed amount or fails to meet the deadline, they owe the seller money.

You can cancel a contract of sale through the Victorian Civil and Administrative Tribunal (VCAT). This means you can get back the deposit you paid to the vendor. However, there are some disadvantages to cancelling a contract of sale. For example, you won’t receive any compensation from the vendor.

Things To Consider With A Contract Of Sale

When signing a contract of sale, it is important to be aware of potential issues that could arise. Before signing any contract, both parties should do their due diligence and gain legal advice.

Be mindful of the following:

  • A party who is not willing to negotiate on property price.
  • A lack of full disclosure about the condition of the property by the vendor. 
  • A bank valuation coming in lower than the asking price. 
  • Look also at the possession condition of the property. As a purchaser, does it suit you if it is subject to a lease?

It is recommended to review the contract of sale during the early stages of a property search. Potential purchasers will usually look through the contract after being interested in a property. However, there may be conditions in the contract that don’t suit your requirements. If these clauses cannot be negotiated on, it is not worth continuing the process or investing in the purchase if it does not meet your needs.

What Form Should The Contract Of Sale Take?

The standard form Contract of Sale of Real Estate has been in use since 1 October, 2008. This document did away with the unfair Contract Note document favour by estate agents, and with the old version of the Contract of Sale, replacing both with a more up-to-date standard document.

The new Contract of Sale of Real Estate contains all of the standard conditions previously hidden away from consumers, although the meaning and effect of these can be difficult for the average consumer to understand. 

Lawyers and Licensed Conveyancers are legally qualified to perform legal work associated with a real estate transaction, and this includes the drafting of a Contract of Sale of Real Estate and the terms and conditions it contains. Estate agents, on the other hand, are prohibited from drafting legal documents of any kind.

Select Legal and other solicitors mostly use the standard form contract of sale for real estate in order to ensure that there is some uniformity in the industry, allowing industry professionals and consumers to anticipate the rights and responsibilities they will assume in a real estate sale transaction.

The most important point to be made to both vendors and purchasers is that nothing is final unless and until a written Contract has been signed by both parties.

As a general rule, once the offer has been signed by the purchaser, and counter-signed by the vendor, a binding contract is created, and the matter is final. While it is possible to make changes to the Contract after it has been signed (for example, changing the settlement date, or extending a home loan approval condition) changes can be made only if both parties (the vendors and the purchasers) agree. If either party disagrees, then the Contract remains as it was when first signed.

How We At Select Legal Can Help You

Select Legal provides professional assistance throughout the entire process, regardless of the type of contract you choose. We can guide you through the paperwork and answer questions along the way.

Whether you’re selling a house, apartment, townhouse, commercial building, or land, Select Legal can create a contract of sale that meets your specific requirements. 

The contract of sale review begins with a meeting between the buyer and seller. At Select Legal, we’re dedicated to helping people navigate the complex world of real estate transactions, which is why we’re available to meet with buyers and sellers throughout Melbourne.

During these meetings, we’ll discuss the details of the purchase agreement, including the price, closing date, and other key points. Once everything is settled, we’ll make a contract of sale review.

This way, everyone knows exactly what they agree to, and neither party feels pressured to sign something they didn’t fully understand. If you’d like more information about the benefits of a contract of sale review. 

Our knowledge of the process and attentive service (as shown in our Google Review history) is what sets us apart from others in this field. Depending on the needs you have, Select Legal is ideally qualified to handle your contracts of sale and conveyancing and ensure your purchase or sale goes through all the required legal checkmarks.

Contact Select Legal today for all your legal advice or request a quote which will only a few minutes.

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