Contract of sale- explained
06 Aug 09
A contract of sale is a legal contract that involves the exchange of a property from seller (vendor) to buyer (purchaser) for an agreed upon value in money. In New South Wales if you wish to sell residential property it is necessary that a Contract for Sale be prepared in advance and available as soon as the property is promoted or advertised for sale.
Any property 2.5 hectares or less is considered to be residential property.If you have listed the property with a real estate agent they must hold a copy of the Contract.This requirement was introduced as part of the NSW Government’s attempt to eradicate "gazumping".
The concept was that by having a Contract for Sale available at the time the property is listed for sale, if a buyer wished to proceed to buy a property the Contract for Sale could be exchanged immediately by the Vendor’s real estate agent.
There are additional laws which allow for the Purchaser to have a five day "cooling off period" for residential purchases, to obtain legal searches and conduct building and/or pest inspections and/or to get legal advice.
The minimum requirements for a contract of sale in NSW include: ·
a Council Zoning Certificate pursuant to Section 149 ·
a sewer diagram if sewer is available ·
a full title search ·
If available the Contract for Sale should also have a copy of any survey report and/or building certificate.