Important Factors to Check Before Signing the Contract

 After saving a deposit and spending weekends running to open house, finally, you have gotten the house of your dreams. 

However, before calling the listing agent to make an offer. It is required for you to do your research and get the Contract of Sale thoroughly reviewed by a conveyancer or solicitor. So, it can protect you from any trouble or nasty surprises that can come on settlement day. If you want a smooth process then contact Manny Singh, Real Estate Agent in Narre Warren. You will get precise information at every step. 

The Contract of Sale is a legal agreement prepared by a real estate agent or solicitor. In this, terms and conditions are described; the buyer and seller get agreed on this in a clear and concise manner. The contract of Sale contains: 

• The name and address of the vendor. 

• The address of property, including reference and plan number. 

• Things that can be easily removed like blinds and appliances (Chattels)and fittings included in the sale. 

• The amount of deposit and purchase price. 

• Settlement details. 

• The property is free or subject to a lease. 

• Building inspection reports. 

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Here are the questions you need to ask your conveyancer and the conditions you need to check when reviewing a Contract of Sale. 

Where am I Exactly Investing?

 

The registered plan copy will be attached to the contract of sale. Here you need to cross check whether the title of the property is same as the one you inspected or not. But in case, if you suspect anything on the plan. You can hire a surveyor to inspect and independently can prepare a plan for comparison.  

You should also lookout for registered and unregistered easements on the plan. In the case of easements on the property (like electrical mains or sewers) you will be restricted in the use of part of the land. For example, whenever you plan to reconstruct or extend the property down the track. Then, the building cost over the easement may be increased or not possible for building approval which may delay your purchasing.  

You need to clearly review the contract to know what items will be sold along with the property. For instance, curtains and blinds, the stove, pool equipment, light fittings, carpeting are often referred to. Therefore, there will be no doubt whether these are included or not. 

Moreover, you should not assume automatically that all built-in appliances you see during the inspection (like a fridge, sound system, TV or microwave) will be in. If you want to add any item that you liked during inspection, you can add on it on a request. As a result, once you are clear that what you are or are not getting, then you can add the price that on what price you will pay after including everything. 

What is the Deposit Amount? 

Amount of deposit is mentioned in the contract. It is considered a maximum of 10 per cent of the purchase price. Furthermore, it is good to check with your financial advisor about the best method to pay the deposit. This payment can be either a lump sum by cheque or in instalments by electronic transfer. 

However, in the case of large property sales, it is often less than 10%. Apart from this, this amount is negotiable. 

Are There Any Particular Conditions?

 

You must review the contract properly to see if there are any particular conditions on the behalf of the seller. These need to be checked carefully. Otherwise, these special conditions could include penalties for delays in settlement or that the sale is subject to a tenancy. Even you can add your conditions like in the concern of obtaining finance and the sale of your home or satisfactory a pest and building inspection. 

Furthermore, another common Special Condition can be taking the property in its current condition that includes hidden and unhidden defects. If this happens, your conveyancer needs to make enquiries to know defect/s may be. This would be advisable to have a pest and building inspection before signing. While buying property, it is good to have an expert by your side to make things easy. If you are searching for one then contact Manny Singh, Real Estate Agent in Narre Warren, to get an accurate advice. 

What’s the Settlement Date? 

To know the information about this you will have to negotiate a settlement period with the sellers. Moreover, you can check the date from the contract which usually remains 30,60,90days. 

In such a case, two situations occur. In one seller eagerly wants and desires a shorter settlement. Whereas, others want vice versa of the former and require a longer settlement. It is appropriate to Check from the agent. They can tell you what the seller’s motivation is and when they exactly settle. If you get agree on a shorter or longer settlement period which suits the vendor, then you may sweeten the deal for them substantially. 

Is There a Cooling Off Period? 

In Victoria, a cooling-off period which is of three clear business days applies to private sales of residential and small rural property sales. It gives time to buyers to consider the offer. It starts from the date when a buyer signs the contract, not from the date when the seller signs it. 

Here you need to consider what will happen if you change your mind and think of withdrawing from the agreement after signing.  On contract, exactly cooling period is mentioned, if you have made up your mind to withdraw the contract. Well, duration of this time period varies from state to state, but will usually be in the realm of two to five days. Next, do not forget to Check, if there is a financial penalty for withdrawing from the sale. For example, in Victoria, the penalty you will have to pay for cancelling the contract will be 0.2% over $50000. 

A buyer can negotiate a longer or shorter cooling-off period depending on their circumstances. In addition, a buyer can request to remove it from the contract entirely as a negotiation tool to show their sincerity. 

Keep in mind that you will get a cooling-off period when buying at auction. Therefore, you have to do all your contractual negotiations, financial arrangements and building inspections before the auction date. 

In Conclusion 

You are making one of the crucial decisions. So, it is a must not to hurry for the purchase of a new home. Get the help of a real estate agent to review the contract properly. This will give you less chances of making mistakes. For instance, you can take the guidance of Manny Singh, Real Estate Agent in Narre Warren, a licensed agent and has adequate experience. 

Remember buying a property is a race of endurance not a sprint. Selling and buying a home may seem easy but there are a lot of things you need to take care of. Hence, take your time, do your hard work and research so you can become completely comfortable before signing the contract with all the terms and conditions.