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Writing Contracts and Special conditions

When completing the Offer and Acceptance Contract please note the following:

  • Prior to completing the Buyer's details all Buyers should seek advice as to what entity they wish to purchase the property in as changes made later could incur additional duty.  Buyers may wish to purchase a property in their individual name(s);  their company name; for their Family Trust or for their Superannuation Fund.  When purchasing in their individual name(s) their full legal name should be shown.  If purchasing on behalf of a Family Trust or Superannuation Fund, ensure that the name of the Trustee and the name of the Trust or Super Fund is clearly stated on the Contract.
  • Show the Buyer's address, this can either be a street address or post office box.
  • The Buyer is to indicate whether they are purchasing the property as Tenants in Common or Joint Tenants.
  • Joint Tenants - The ownership of land by two or more persons where there is a right of survivorship i.e. on the death of one joint tenant, the surviving joint tenant becomes the sole proprietor.
  • Tenants in Common - Where there is a desire for two or more persons to hold the land in undivided shares. On the death of one party their share forms part of their Estate and is distributed in accordance with the terms of the Will.
  • If purchasing as Tenants in Common the shares must be shown. If no shares are shown there is a presumption that the shares are equal ie 50/50.   If it is discovered later that the shares are not 50/50, then additional duty will apply,
  • Address of the property to be completed.
  • Legal description of the property to be completed from a current Title Search.
  • List "chattels" that are sold with a property eg window treatments, floor covering and light fittings. If there is a shed or dishwasher being sold with the property we recommend that this be shown on the contract. Similarly if the Seller intends to remove anything from the property eg a set of curtains then this must be written on the Contract so that the all parties are aware that the item is being removed.
  • Complete the purchase price
  • Complete the deposit section. The deposit can be any amount. When calculating how much deposit should be paid take into account that the Buyer will also need to pay duty PRIOR to Settlement, so make sure they have enough money left to cover the duty liability.
  • Complete the settlement date. The settlement date can be for example, 28 days from Finance Approval or you could select an actual date. Make sure you consult a calendar to ensure the date does not fall on a weekend or public holiday.
  • If the Buyer requires finance, complete the finance section by writing in the name of the Bank the Buyer intends to obtain finance from, the latest date for finance approval (14 to 21 days from acceptance is a recommended time frame) and the amount of loan required. This section must be signed by the Buyer.
  • If the Buyer is making a cash offer, ensure the Buyer signs on the Cash section of the Contract
  • Any special conditions can be written in the blank space on the front of the contract OR you can write the special conditions on an annexure.  If the special conditions are written on an annexure ensure that you write on the front of the contract that "Annexure A/B/C/D etc forms part of this Contract". Most Real Estate Agencies have preprinted Special Conditions and Annexures. Read these very carefully to ensure they meet your requirements and to ensure they contain the six elements listed below:
    • What needs to be done
    • Who is going to do it
    • Who is going to pay for it
    • When does it need to be done
    • What is going to happen if something is discovered
    • Who is going to pay to fix it
  • If the preprinted special conditions do not cover your requirements then amend or replace them remembering that each special condition should contain the six elements listed above