CONTRACT OF SALE
THE OFFER FORMS PART OF THE CONTRACT
It is usual in Western Australia to purchase a house via a method known as 'Offer and Acceptance'.
This consists of the Offer and Acceptance form, the "O&A"and the joint form of General Conditions for the Sale of Land, the "General Conditions".
The O&A can be amended to include any special conditions that meet the needs of the seller and/or the buyer.
REMEMBER If you put an offer in on a house in Perth and it is accepted then you are committed to complete the purchase, unless the seller does not meet a condition.
ELEMENTS OF THE CONTRACT
when you put in an offer on a property think about the terms of the offer you put forward.some key elements of the contract include:-
- Your name as the buyer
- the date the offer is made
the address of the property
details of the certificate of title for the property
the purchase price you are offering
- details of any fixture & fittings to be included as part of the sale (these are no longer free from stamp duty)
the amount of deposit to be paid on acceptance of the offer. (no more than 10% of the purchase price and is often less).
the amount of finance and where you intend to get the finance (eg. your finance broker - we recommend Accrete Financial Solutions)
- the time frame in which the finance approval must be obtained ,b>(this time frame is commonly 21 days but it can be a longer time frame, try to avoid it being any shorter).
any special conditions you want to include as part of the offer and the time frame for these to be cleared.
the settlement date (it is common for this to be 28 days after finance approval)
- the settlement agent both parties propose to use.
When buying a house Perth it is important that you include purchasing conditions that are suitable to you when you put in an offer.
You can make a contract subject to almost anything.
The other party must agree to the conditions so you need to be realistic with the conditions you set.
Some typical conditions include:
Subject to finance, this is generally 21 days but it can be a shorter or longer period.
Subject to a satisfactory inspection.
Subject to a satisfactory termite inspection.
Subject to the chattels, fixtures and fittings as seen on the date of inspection.
Subject to all electrical and plumbing items to be in good working order prior to settlement.
Subject to all council and regulatory approvals on all building and renovations.
Subject to builder's warranty insurance (for new houses and renovations over $12,000 such as a pool or pergola).
Subject to approval by the Foreign Investment Review Board (if an overseas buyer).
- subject to the sale of another property.