Are you looking to buy your next dream home or investment property? Perhaps you are trying to sell? Either way, the Contract of Sale is a key document to buying or selling property.
The Contract of Sale sets out the terms for the sale of the property. It details the total price payable, details of the deposit and when it is payable, the time and date for settlement, and any other agreed special conditions. The Contract of Sale is only binding once the seller and the buyer have signed the document.
A conditional Contract means the sale of the property will only occur if certain conditions are met. Common conditions are for the buyer’s finance to be approved, a problem free building and pest report on the property, or the sale of the buyer’s existing property being finalised.
If agreed by the buyer and the seller, there can be special conditions included in the Contract that are particular for that property or your circumstances. For example, do you require the house to be professionally cleaned? Does something specific need to be removed from the property?
Including conditions can protect you if those conditions are not met and you want to withdraw from the Contract. The wording of the condition/s is very important to ensure your rights are protected. For that reason, any conditions to the Contract should be drafted by either your lawyer or conveyancer.
An unconditional Contract of Sale means the buyer and the seller are legally obliged to follow through with the Contract, on those terms. Before entering into an unconditional Contract of Sale you must be completely certain that you want to proceed with the Contract in those terms.
The benefit of an unconditional Contract of Sale for a seller is that you have a level of certainty that the sale is going to go through. As a buyer, an unconditional Contract of Sale may mean that a seller is willing to accept a lower purchase price than if there were conditions to be satisfied before the sale goes through.
Conditional or unconditional – what should you do?
Make sure you obtain legal advice before signing a Contract of Sale – whether it is conditional or unconditional. The conveyancing team at MMLaw can provide you with advice specific to your circumstances, and what risks and benefits there may be for you to enter either contract type.
If you want to discuss options for your contract, or talk more about the conveyancing process, please contact the MMLaw conveyancing team on (07) 5443 1800.