A residential purchase is often the largest financial commitment that a person will make.
The important details that every residential contract should include are:
- The selling agent – if there is one;
- The details for the seller and buyer – check names are correct and use full names;
- The purchase price and the deposit and when is the deposit payable;
- A full description of the property – lot and address details;
- The nature of any improvements and what chattels are included;
- Encumbrances – check the title search – for example, easements must be disclosed. Don’t insert the existing mortgage number though – the buyer does not want to buy the property subject to the mortgage;
- Finance – ensure every item is complete – bank, amount and date it is due;
- Pest and building inspection – again, make the buyer aware that they should get one and that the contract is completed accordingly;
- Settlement date and place – make sure the settlement period is reasonable. An existing and incoming mortgagee of the property will as a rule of thumb require at least 28 days to prepare for settlement;
- Compliant smoke alarms and the approved safety switch have been disclosed;
- Pool, if there is one, is disclosed and whether it is compliant;
- Disclosure of any Neighbourhood Disputes;
- From the 1 December – make sure the compulsory warning is included directly above the buyer’s signature.
Our experienced conveyancing team can assist you. Contact Donnie Harris Law to discuss your residential conveyancing matter.