Understanding ContractsContracts are part and parcel of selling property, and it’s important to have an understanding of what they all mean. While it can all be overwhelming to anyone not well-versed in the legal aspects of buying and selling, a little bit of knowledge is very valuable.

Here are some of the most important aspects of contracts for the sale of property/land to be aware of:

Agency Agreement

First and foremost, you need to select the real estate agent who is right for you. Ensure they are fully licensed to practice on your behalf. You will sign a legally binding contract with this agent, which includes agent’s services to be rendered, agreed fees and commission, timing and circumstances of commission payment, advertising fees, and other aspects of the agent/vendor agreement.

Click here for more information on Agency Agreement types.

Contract for Sale

This must be prepared prior to placing the property on the market. It must include vital information relating to and incorporating:

  • Title documentation (proof of ownership)
  • Zoning certificate outlining council restrictions on the property
  • Drainage and sewer diagrams
  • Easements, Covenants, and Rights of Way
  • Pool Compliance Certificates and Pool Registration
  • Strata-related Plans, Common-Property Certificates, and By-Law Changes

As a vendor, you must also certify that the property is not subject to government proposals or other affectations that might impact on the property, and also that all documentation is complete and accurate at date of contract.

Fixtures

Fixtures refer to any and all features of the property which may or may not be included in the sale. They are not easy to remove without negatively impacting on the property, and include taps, stoves, ovens, air conditioning units, etc. Fixtures can also refer to blinds, curtains, and other removable features of the home – and your contract must clearly stipulate what is and what is not included in the sale. Purchasers have the option of negotiating for removable fixtures to be included and if amenable, these can be written into the contract if required.

Contract Exchange

This occurs when both parties reach an agreement, sign the contract, and a deposit is paid. The sale is not finalised until settlement is reached and the terms of the contract are upheld. As a vendor, you are responsible for the delivery of the property to the buyer in the same state as when the contract was signed.

It’s crucial in the process of selling property to seek guidance from experts in the industry to ensure a smooth and streamlined procedure. Your local Ruralco Property expert can manage and walk you through all steps between signing on with an agent to finalising the contract for sale.

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If you have questions about buying or selling real estate or would like to speak to a real estate agent, contact us today. We’d be happy to offer advice.