Home Buying 101: Understanding Contract of Sale

When it comes to contracts, the number one rule is not to sign on the dotted line unless you understand everything written on the document—including the fine print. This is especially important when buying property. You should read the contract carefully and know what every detail means to prevent unfavourable circumstances, which will surely cost you a fortune.

Conveyancing specialists in Perth can help if you are having trouble understanding the contract of sale and other legal records involved in the buying-selling transaction. Ask for independent advice from these experts before signing the contract. They will be able to translate complex legal terms and help you understand what you are signing up for.

The key in understanding the contract of sale is to break down the elements. Here are some items involved in a contract of sale:

The Particulars of a Sale

This portion enumerates the details of the sale, such as the name of the seller and the buyer, their real estate agents and conveyancer. It also includes the property address and the certificate of title of the land, stating the lot, plan, and volume details.

Payment

This section shows the total cost of the property. The agent will ask you for a deposit at the time of signing. The money gives the seller guarantee that you will push through with the purchase of the property. This deposit amount and balance due at settlement are supplied in this section of the contract.

Goods Sold with the Land

Supply the details of and goods sold with the land if you are purchasing an established property. Any fixtures and fittings that come with the property should be included also. If you negotiated with the seller and bought things in the property, make sure that you also provide this information in this section.

Settlement

This section shows the date when the right of property ownership will be conveyed to you. This is called the settlement date. At the date of settlement, your lender will transfer the money and collect the deed from the seller’s lender.

These are just some of the details you need to understand in the contract of sale. Get in touch with a conveyancing specialist, as you review other items in the contract. Keep in mind that a fail-proof property buying transaction begins with that one crucial step of understanding terms and conditions.