When you have decided to buy a property in NSW, your rights and obligations are stated in the “Contract for Sale”. A contract for sale must properly identify the property you are buying and outline the terms of which it is being sold.
There are certain documents which form part of the contract, including the zoning certificate, a drainage diagram showing the sewer lines, a copy of the title deed and the plan of the land plus any documents showing easements, rights of way, restrictions and covenants on the land. If you are buying a strata title unit, the contract will also have a copy of the bylaws about the common property of the unit complex.
Next, in a contract there are standard items but also other terms which may favour the seller, known as Special Conditions. This is why the first thing your solicitor will do is make sure that the Contract for Sale isn’t just legal, but that it is fair for you, the purchaser. The contract usually envisages that you the property will be sold as you find it. Therefore property inspections for pests and building faults are critical.
Once these matters are satisfied, the contract becomes binding when the buyer and seller each sign the contract for sale and exchange them. At “exchange” the buyer also gives a 10% deposit to be held by the real estate agent in their trust account.
Next month we will discuss finalising your purchase.
