When you’re looking to buy a house in New South Wales, one of the most important things you can do is to get a contract review. After you’ve found the place you want to buy, the real estate agent will give you a copy of the contract of sale. It has all the terms and inclusions for what you’re buying, and if you’re about to spend hundreds of thousands of dollars, it would be wise to go through it properly.
We’ve put together everything you need to know about a contract review, what it is and why you need one.
What is a contract of sale?
It tells you about the sale
The contract of sale is the legal agreement between someone who is selling a house and the person who wants to buy it – in this case, that’s you! It sets out all the details about the transaction, including things like how much you are agreeing to pay, how long you have to change your mind, what exactly is and isn’t for sale, and what happens if you find something wrong with the property after you’ve signed the contract. It’s a formal, legal document full of information.
The section 10.7 certificate tells you about the house
While the contract gives you the details about the deal, the section 10.7 council certificate tells you the story about the place you want to buy. You’re about to take responsibility for a property, which means you need to know what to expect. The 10.7 certificate will tell you about the zoning of your property, as well as what can and can’t be built on your land. It will outline which trees have to be kept, as well as whether this property is at high risk of flooding or bushfires. It will tell you about whether the property is heritage listed or in a conservation area, and whether it’s likely your land has been impacted by mine subsidence. This kind of information can either confirm you’re making a good choice or completely change your mind about a property.
Why does it matter?
When you started looking to buy a place, you might have just wanted to find a nice house in a good neighbourhood, but as you can see there is a lot more to consider and the contract is very important. The contract lets you know about the risks you’re taking on with each property, as well as the rules of how the sale will happen.
The seller can add all sorts of special conditions to the sale, and if you sign it without having it reviewed, you’ll be agreeing to whatever is in the document, like it or not. Which means that if you find something wrong with the house after signing, you won’t be able to pull out of the deal. Or worse, if you’re denied a loan from your bank, you’ll not only miss out on the finances to buy a place, but you may still have to pay the deposit to the seller (usually 10% of the total price), plus, the seller could claim even more from you for any loss on resale of the property. You could end up thousands out of pocket, without anything to show for it.
These situations are terrible, but they’re also completely avoidable.
What should you do?
The good news is, our legal team have dealt with thousands of contracts, and they know exactly what should and shouldn’t be included. As many as 80% of the contracts we review will need a change of some kind.
If you’re interested in a particular place, ask the real estate agent for a copy of the contract before you put in an offer or attend an auction. Get that contract reviewed by our experienced team and we’ll make sure you’re aware of the risk you could be taking on. Our team will bring every important detail to your attention and draft any adjustments to make sure it’s a fair agreement that everyone’s happy with.
Plus, our contract reviews are a fixed price, which means we’ll do all the work needed without charging you extra hourly fees.
When you’re buying property, it doesn’t have to be a risky process. Getting the right support will help you sign the contract confidently, with no hidden surprises later in the process. We’re here to help you do just that.
Click here to get a Contract Review now or simply fill in the form below.
This article is provided for general information purposes only. Its content is current at the date of publication. It is not legal advice and is not tailored to meet your individual needs. You should obtain specialist advice based on your specific circumstances before taking any action concerning the matters discussed in this article.