Prospective buyers will sign a contract note or contract of sale when they wish to make an offer on a property.  The contract note contains details of the property for sale, names of the seller and buyer, seller’s estate agent, price and the deposit paid, balance owing at settlement and any special conditions such as a clause “Subject to finance”.  An agent or agent’s representative can complete a contract note in preparation for the buyer and seller to sign.

Contract of Saleis a more detailed legal document than the contract note and is usually prepared by the Vendor’s Conveyancers.  The terms agreed upon in the contract note can be set out more formally and in greater detail in the contract of sale.  It is possible to proceed straight to a contract of sale without first completing a contract note.

A cooling-off period of three clear business days applies to non-auctioned residential property sales regardless of price.  The cooling-off period allows the prospective buyer time to consider the offer, and begins from the date the buyer signs the contract, not from the date the seller signs it.

A scheme providing first home owners with a non-means tested, one-off payment of $7,000 (as of 1 July 2000).

Items which are attached to the property and cannot be removed without causing damage to the property such as bathroom suites, build-in wardrobes, kitchen stoves, dishwashers, lights, blinds.  They are usually included in the sale.  If there is a specific item that is in the home that is of a fixed nature, please ensure you write down the item as a fixture on the contract of sale.

Rescind means your ability to be able to ‘get out of a contract’.

Section 32 Vendors Statement Is a statement that needs to be provided by the Vendor in accordance with Section 32 of the Sale of Land Act.  This statement provides you with all the information pertaining to the land and helps you to make a learned decision about purchasing the property. It highlights things like Sub-division or Building Approvals, Easements, rates details and much more.

The Sale of Land Act provides for early release of Deposit Funds that have been paid and held in Trust.  However, this release is not guaranteed.  If the Purchaser is not satisfied that there is enough money left over from the balance of funds at settlement to payout the existing Vendors Mortgage, the Purchaser may decline the request.

Settlement is the date on which the balance of the purchase price is paid to the seller, and the title of the property is handed over to the buyer.  The seller sets the date of settlement in the contract   The settlement period is usually between 30 to 90 days but a buyer may be able to negotiate an alternative settlement period with the seller prior to signing the contract.

Unconditional is the term used in reference to a contract in which there are no conditions.  When purchasing a property privately you can place conditions on the contract such as “Subject to Finance” or “Subject to Building Inspection”.  If finance is not obtained or the Building Inspection is returned unacceptable you may Rescind from the contract (get out of it).When a Contract is unconditional you do not have the luxury of using these conditions.  All properties that go to Auction are Unconditional.

Section 32 Vendors Statement Is a statement that needs to be provided by the Vendor in accordance with Section 32 of the Sale of Land Act.  This statement provides you with all the information pertaining to the land and helps you to make a learned decision about purchasing the property. It highlights things like Sub-division or Building Approvals, Easements, rates details and much more.