Why Must My Contract Be Reviewed Before I Sign?
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Seek legal advice before signing your contract.
You are now ready to take that final step – you have found a property you wish to purchase, whether as an investment or to be your first or subsequent home (principal place of residence).
Contracts are generally prepared by real estate agents on behalf of the seller. You have most probably negotiated on the price and the agent is asking you to sign the contract so that they can put the offer to the seller for acceptance.
The residential REIQ /ADL contract contains a warning stating that you have the right to legal advice before you sign the contract. This is the point at which you should engage a trusted conveyancer to act on your behalf – not after you have signed the contract. The agent will require you to add your law firm’s details to the contract, however, the most important issue is that you do not sign the contract until you have had it reviewed by your conveyancer and received legal advice.
Your conveyancer will check the contract to ensure that it reflects your best interests. Standard form contracts include provision for a finance and building and pest clause to be included. Note that all details of these two clauses need to be fully completed in order for the contract to be subject to finance or building and pest inspections, as the case may be. You should consider whether you need any special conditions appropriate for your circumstances included e.g. a subject to sale clause if you are relying on the funds from a prior sale to fund your purchase or a due diligence clause to provide for searches / enquiries to be made of the property to cover any particular concerns you may have about it.
All purchases and properties are not the same and buyers have different circumstances associated with their purchase. Your conveyancer will discuss your options and guide you. This can be an extremely stressful time for you and knowing there is someone there to assist you and protect your interests at all times, makes the whole process less overwhelming – and an exciting one too!
Please contact MMLaw to assist with your legal requirements.
The information in this document represents general information and should not be relied on for your specific circumstances. If you require legal advice and assistance on the matters contained or associated in this document you should contact MMLaw.
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The content published in this Blog is in the form of academic papers and the opinions expressed herein are generalised. The information provided is for educational purposes, not specific legal advice.
The application of any principles referred to can alter from case to case and accordingly you should seek independent legal advice in respect of your individual circumstances.