When seeking to buy a home in Victoria, one of the most essential things you can do is get a contract reviewed by a licensed professional conveyancer. After you have discovered the property, you wish to buy, the real estate agent will provide you a copy of the contract of sale and Section 32 statement.
It should contain all of the particulars and terms proposed for what you are purchasing, and if you are going to spend hundreds of thousands of dollars or even millions, then you should thoroughly read it.
We have put together everything you need to know about contract reviews, including what they are and why you need them.
What exactly is a contract of sale?
The contract of sale tells you about the sale.
The contract of sale is the legal agreement between someone who is selling a home and the person who wants to buy it – in this example, you. It lays out all the specifics of the transaction, such as how much you are agreeing to pay, how long you must change your mind if you sign the contract, and whether you are committed from the time you sign the contract.
The contract also specifies what is included and is not included for sale, as well as what happens if you discover a flaw in the property after you have signed the deal. It is a formal, legal document chock-full of information.
The Section 32 tells you about the land and buildings.
While the contract outlines the transaction, the Section 32 tells the tale of the property.
Is it in a bushfire-prone area? Is it lawful for you to build another house on the property? Is it okay for your neighbours to use your garden as a thoroughfare? Has the seller informed you that the property is near a new construction development that will have an impact on your neighbourhood? Do local zoning regulations limit how you may utilise or develop the property?
It is the seller’s obligation to include all this information in Section 32.
Why is a pre-purchase contract review important?
When you first started searching for a property to purchase, you probably set out with the intention simply to find a lovely house in a good neighbourhood.
However, there is a lot more to consider, and the contract and section 32 statement is crucial to that end.
It informs you about the property, as well as the guidelines for how the transaction will take place.
If you sign the contract without having it examined, you are consenting to whatever it includes, whether you like it or not. This implies that if you discover something in the contract that you do not like after signing it, you may not be able to modify it.
Worse, if your bank denies you a loan, you will not only be unable to purchase a home, but you may also be required to pay the deposit to the seller (up to 10 percent of the total price). Furthermore, the seller may seek further compensation from you for any loss on the selling of the property. You might end yourself thousands of dollars in the hole with nothing to show for it.
These are awful circumstances, but they are also entirely avoidable.
What should you do?
The good news is that at Tick Box Conveyancing, we have assembled an expert team of conveyancers in Melbourne with years of experience who can help you review a contract of sale before you sign.
Our team reviews hundreds of contracts every month and knows exactly what should and should not be included.
If you are interested in a certain property, ask the real estate agent for a copy of the contract and Section 32 before making an offer or attending an auction.
Get that contract evaluated by our expert staff, and we will make sure you are aware of the risks you may be taking.
Our staff will bring every crucial element to your notice and write any necessary changes to ensure a fair agreement that everyone is satisfied with.
Furthermore, our contract reviews are fixed price, which means we will do all necessary work without charging you additional hourly costs.
Purchasing property does not have to be a hazardous endeavour. Having the appropriate support will allow you to sign the contract confidently, with no surprises later in the process. We are here to assist you in doing exactly that.
Contact us today to request a Contract Review immediately.