In order for residential property in NSW to be advertised for sale, a Contract for the Sale of Land is required to be prepared. Whether you decide to sell your property through a real estate agent or privately, you are still required by law to have a Contract prepared. It is therefore important that vendors understand their obligations, especially in situations where vendors have privately listed their property for sale via an online platform.
Briefly speaking, a Contract consists of terms and conditions together with mandatory prescribed documents.
There are numerous terms and conditions contained in the Contract which are standard form, however, can appear quite daunting. Accordingly, vendors should approach a qualified solicitor or licenced conveyancer to assist in the preparation of their marketing Contract, at the earliest opportunity. Further, most solicitors and conveyancers also insert certain special conditions into the Contract, to protect a vendor’s interests and to assist in the selling process.
Also contained in the Contract are prescribed documents. These include, but are not limited to, title and plan searches of the land together with a zoning certificate and sewer diagrams. Any further documents recited on the title search are required to be attached to the Contract. For instance, documents relating to any easements, rights of way, restrictions on the use of land, etc. If a swimming pool is located at the property, a valid certificate of compliance or non-compliance, or relevant occupation certificate is also required to be annexed to the Contract.
It is important that the Contract is correctly prepared prior to the property being listed for sale to ensure the transaction is processed with due speed and minimum inconvenience to all parties. In particular, vendors should check that the improvements, inclusions and exclusions (if any) are correctly recorded in the Contract. Vendors should also carefully review the title and plan searches, and other prescribed documents to ensure they accurately depict the property. Addressing errors or omissions at the first opportunity avoids the added stress of attempting to deal with such issues once other parties become involved.
Having a Contract which is not properly prepared can have dire consequences. For example, a Contract which does not comply with legislation, entitles a purchaser to withdraw from the sale prior to settlement.
At Everingham Solomons, we strive to provide our clients with timely, proper and expert advices because Helping You is Our Business.
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