Agreements for Sale & Purchase of Property
Fri Oct. 3rd 2014
Matters to be considered by the Purchaser of residential property when buying under an ordinary agreement for sale and purchase – not a sale by auction.
Agreements should, in most cases, contain certain conditions for the benefit of the purchaser. This is not possible normally if the property is being purchased at auction, as the purchaser will need to have made all necessary enquiries prior to attending the auction and placing any bid. A different agreement is signed where a property is sold by auction and this will be an unconditional agreement.
If not an auction, a purchaser, prior to signing an agreement for sale and purchase, should consider after consultation with their solicitor including in the agreement the following conditions amongst others:
- a condition making the agreement subject to finance (if finance is required);
- a condition making the agreement subject to a suitable building report;
- a condition making the agreement subject to a LIM report; and
- if the property being purchased is an apartment or unit title with a body corporate then special consideration is needed under the new Unit Titles Act 2010.
This is by no means an exhaustive list but four that immediately spring to mind.
Consideration will also need to be given to:
- Settlement date for the giving and taking of possession;
- Amount of the deposit (usually 10%);
- Whether the deposit becomes payable either upon signing of the agreement by all parties or upon the agreement becoming unconditional;
- The entity that the property is to be purchased in. If this has not been decided at the time of signing then the words “and/or nominee” should be included.
Upon signing of an agreement for sale and purchase (not an auction agreement) your solicitor will advise you in relation to clause 5.2 in the general terms and conditions of sale which allows 10 working days for searching by your solicitor of all matters pertaining to the title to the property.
Other considerations need to be taken into account when purchasing at auction or when purchasing a cross lease or unit title property.
The contents of this article are for general information only and does not constitute legal advice and should not be substituted for professional legal advice obtained from your solicitor.