Importance of Property contract

 

Contract conditions

Usually the contract for house is prepared by sellers solicitor. The conditions are mentioned in contract does not mean they can not be negotiated.

The conditions in order of importance will be

  1. Days for settlement (generally 42 days for normal contract and 21 days for auction), but can be negotiated to larger if the seller is interested in deal.
  2. Attachments: Kitchen attachments sometimes are not included as part of contract, be careful for it. As it will cost about $2,000 to $15,000 just to fit normal kitchen appliances and other white goods.
  3. Non-fixed items: These are items like curtain, blinds and things in garden shed, light fitting, extra hot water system, garden ornamental, light bulbs and loose fittings. This will look good at the time of inspection but may not be part of deal.
  4. Deposit money refund policy: Purchaser does not obtain Refund if building inspection is adverse in nature, finance etc. can be negotiated.
  5. Deposit amount and way it is provided: Deposit can be 5% rather then 10%. The deposit provided can be bank guarantee  or bank note.
  6. Agent holds deposit money  until date of settlement: The deposit provided is kept in trust account by seller’s agent and it can be in interest bearing or non interest bearing account.
  7. Solicitor responsibilities include to look for all council restriction, planning issues and other property related reports.
  8. Engage solicitors as soon possible you have decided to put deposit on the property. Let solicitor act on your on your behalf with sellers solicitor and let professional outcome be in your favour.

 

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