CONTRACT OF SALE

THE OFFER FORMS PART OF THE CONTRACT

buying houseIt 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.

 

PURCHASE CONDITIONS

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.

BUT REMEMBER

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.

 

 


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