Contracts are very important and must be thoroughly reviewed

Buying a house is a deal that requires much more than a handshake. There is usually a lot of back and forth before an agreement is reached on price, compromises, and the condition of the property.

When both sides finally come to an agreement, a contract of sale is signed to seal the deal and commit the purchaser and seller to the sale. Like most legally binding agreements, a contract of sale for a property is a complex legal document that can be difficult to understand without conveyancing experience.

What to look for when signing a house contract

Using a Sydney conveyancer is critical to keeping everything on track and avoiding surprises. Always go over the contract of sale with a professional to ensure all details are correct, including terms often hidden in the fine print.

Details that must be included in every contract of sale include:

• The property’s address
• Vendor and purchaser names and addresses
• Sale price
• Property settlement date
• Conditions of settlement such as finance and inspections. Each condition must be numbered and initialled by both parties.
• Whether the property is “subject to lease” or is a “vacant possession.”
• Details of other properties included in the deal
• Inclusions and exclusions (sometimes added as a “chattels list’ to cover items like fittings, carpets, curtains, and fixtures)

Remember, once the contract is signed, it can’t be undone. Always ensure all information is correct with the help of your conveyancing Sydney professional.

Key points to watch for

You can’t undo a signed contract, but the vendor and seller still have some things to organize before settlement.

Conditions

Conditions include items like extra inspections. For example, a purchaser can request building and pest inspections be done to ensure the house is in good order before settlement.

Finance

A purchaser should have a good idea of the amount they can borrow before signing a contract. As soon as the contract is signed, you will need to contact your financial provider to arrange finance for the property. Most buyers will request a “subject to finance” clause in the contract, so they are covered in the event that financing falls through.

Pre-settlement inspection before handover

A pre-settlement inspection ensures the property is in the same condition as when the contract was signed. When the purchaser is happy that everything is as expected, the seller will hand over the keys to the real estate agent, who will pass them on to the new owner.

Most people sign a contract as soon as they find a property they love. First looks can be misleading, however, so it always pays to take advantage of your Sydney conveyancer’s experience when reviewing a contract of sale.