When selling a property in Australia, a contract of sale is essential, but the specific requirements vary from state to state. As the seller, you’ll need to have this contract prepared before your home can be listed. Drawn up by a solicitor or conveyancer, the contract safeguards both parties by clearly outlining the terms, conditions, and inclusions of the sale.
What every property sale contract must include
A property sale contract will include essential information such as the names of the buyer and seller, the property address, sale price, deposit details, and any included or excluded items, such as fixtures, fittings, or other features. “It also includes specifics like the title information and settlement date, and may note any repairs or improvements scheduled to be completed before settlement,” advises Jaime Pratt, Head of PM at VPM.
Contracts often contain clauses for conditional elements like building or pest inspections, finance approval, or additional time for settlement if needed by either party. Jaime says you’ll also need to disclose any information that may impact the sale, but this is something your agent and legal representative can discuss with you.
When your contract needs to cover special conditions
Certain properties may require extra conditions in the contract, particularly when work is needed before settlement or where strata rules apply, such as pet restrictions. According to Jaime, other tailored clauses might allow buyers early access to begin renovations before settlement, with the terms carefully negotiated to protect the interests of both parties.
How to safeguard your property sale
Your solicitor or conveyancer will assist in preparing a thorough contract and help you understand any implications of the conditions, including potential penalties for unmet terms. They will also work to resolve any issues that arise, ensuring a smooth process.
“We always recommend you consult with your legal advisor before listing your property,” Jaime suggests. “It’ll give you peace of mind and protect your interests throughout the sale process and it can also help streamline the process so you can focus your energy on your next steps.”
If you’re considering selling and need some guidance around the contract of sale, contact our qualified and experienced team, who can help you understand the terminology and walk you through the relevant clauses and other documentation
* Please note: This information is not intended to replace legal and financial advice. Please consult your financial advisor and legal team for information relating to your individual circumstances.