A Contract for Sale of Land is an agreement outlining the terms and conditions between a seller and a buyer of real property.
The common details in a Contract include the names of the parties, the subject matter, the purchase price and procedure for transfer of title of the property.
In New South Wales, the Law Society of NSW and the Real Estate Institute of New South Wales have issued the 2014 edition of the Contract for Sale of Land. This Contract is the standard form used for conveyancing in New South Wales.
Before the Vendor is able to market the property for sale, the Vendor should have a Contract drafted and ready for review by any potential purchasers.
The Contract provided by the Vendor or by their representatives may include the following details:
• Vendor’s name and residential address.
• Vendor’s solicitor’s name, address and contact details.
• Real Estate Agent’s name, address and contact details.
• Complete date.
• Description of the property.
• Inclusions and exclusions.
• Strata manager details (for strata property).
• Any applicable purchase price (including deposit amount and balance payable).
• Standard terms and conditions.
• Special conditions.
• Title search and any applicable dealings.
• Applicable property certificates, diagrams and searches.
Drafting a Contract can often be complex and preparing it incorrectly could have unexpected consequences. As a result, it is common practice for a Vendor to engage the services of a Conveyancer or Sydney Property Lawyer to prepare the Contract.
To protect your interest, we may insert a number of special conditions. These special conditions usually relate to consequences for breach of contract, deposits, interest for delays in settlement, fees for late submission of documents, completion date, sunset conditions, representations, real agent’s commission, condition of the property, finance approval and many more.
Our Sydney conveyancing lawyers will walk you, as the Vendor, through each step of the drafting of the Contract and ensure your requirements are catered for in the Contract.
As Unified Lawyers have drafted and reviewed thousands of Contracts, we know what to look out for. If you are looking to buy a property and need the Contract reviewed, our Sydney property team can provide you with guidance and advice on the Contract as well as arranging any property inspections.
What are improvements, inclusions and exclusions in Contracts for sale of land in NSW?
When buying a property in the state of New South Wales, the buyer is actually buying the land, which does not necessarily include all the things that are on the plot of land. Before the seller can market the property for sale, the seller should have a contract for sale of land drafted and ready for review by potential buyers.
Drafting a contract for sale of land is often a complex process, and it is best to obtain professional help from a Property Lawyer or Sydney Conveyancer. Many law firms provide Sydney conveyancing services that include the preparation of the contract for sale. Part of the Sydney conveyancer’s role is to minimise any misunderstanding between the seller and buyer with regards to the improvements, inclusions and exclusions that come with the land.
Improvements are structures that have been constructed on the land. Some examples include a house, carport or garage. If the land is vacant, it should be noted in the contract.
Inclusions are items that are part of the deal when the buyer takes ownership of the property. Some standard inclusions are curtains, blinds, floorings, lighting fixtures, insect screens, and clothes line. Other common inclusions may include air conditioners, fans, heaters, and home security system. Sometimes the buyer may want to buy something on the property from the seller that are not part of the deal.
For example, the buyer may want to buy the sofa or home theatre system in the living room from the seller. If the seller agrees to sell, the Sydney conveyancer must include the item, no matter how small, in the contract. It’s the conveyancer’s job to be as specific as possible to avoid any confusion. In other words, if the seller agrees to include pot plants in the deal, make sure that it is specified in the contract.
Exclusions are items that the buyer specifically does not want to be on the property when the seller turns over the ownership.
For example, if the buyer doesn’t own a dog, he probably doesn’t want the doghouse in the yard. On the other hand, the seller may want to keep something, especially things of sentimental value. For example, the seller may want to keep the front entrance door or light fittings as it reminds them of their childhood memories at the property. These items must be listed in the contract as exclusions.
There is no room for ambiguity in the contract. Therefore, to avoid any argument and reduce unnecessary stress, all the agreed upon inclusions and exclusions must be included in the contract in detail.
If you are currently looking to purchase a property, call our Sydney conveyancers to assist you on 1300 667 461.