A property is ‘Under Contract’ when both Vendor and Purchaser have signed the Contract of Sale. It is deemed to be ‘Unconditional’ (sold) when all the conditions of the sale have been met.
The Contract of Sale can also be used by prospective Buyers to make an offer on a property.
A formal Contract of Sale of Real Estate ensures all parties involved in the sale process know exactly what is being bought and sold and the conditions by which the sale is taking place. This ensures it is tailored to suit the parties’ needs.
A Contract of Sale of Real Estate must be in writing and signed by both the Vendor and the Purchaser. A simple verbal Contract is not enforceable.
The Contract document can contain certain conditions which set out the rules by which the deal will proceed and eventually settle. As a general rule, once both parties have signed the Contract of Sale then the document is a legally binding Contract and the matter is final.
An Estate Agent is permitted to fill in the blanks of the standard Contract of Sale of Real Estate, which is an up to date standard form and contains all the standard conditions, rights and responsibilities. If variations or changes are to be made after signing the Contract, both parties need to agree with them and sign off on them. If one party does not agree, then the Contract stands as is, when it was first signed.
The Contract of Sale contains information such as:
Details of the property, the Vendor and Purchasers’ names, the name of the Estate Agent, details of Legal Practitioners or Conveyancers that the Seller and Buyer have engaged, the price, the deposit paid, balance owing at settlement and any special conditions, such as a clause ‘subject to finance’. The Contract must also clearly specify whether the price includes or excludes GST and if included, how the amount will be calculated.
Both parties should always have the Contract of Sale of Real Estate checked by a qualified Lawyer or licensed Conveyancer to ensure both parties’ interests are covered and protected.
Once a Contract of Sale of Real Estate is signed by both parties, they will be given a copy and a copy will also be sent to their Legal Representatives.
As a courtesy, the Lawyer or Conveyancer may inform the Real Estate Agent if there are any new developments (conditions or variations) that need to be made in the Contract.
Our fully qualified and experienced staff at One Agency Robert Mure are looking forward to assisting you with any of your real estate needs.