CONTRACT OF SALE
THE OFFER FORMS PART OF THE CONTRACT
It is usual in Western Australia to purchase a house via a method known as ‘Offer and Acceptance’.
This consists of the Offer and Acceptance form, the “O&A”and the joint form of General Conditions for the Sale of Land, the “General Conditions”.
The O&A can be amended to include any special conditions that meet the needs of the seller and/or the buyer.
REMEMBER If you put an offer in on a house in Perth and it is accepted then you are committed to complete the purchase, unless the seller does not meet a condition.
ELEMENTS OF THE CONTRACT
when you put in an offer on a property think about the terms of the offer you put forward.some key elements of the contract include:-
- Your name as the buyer
- the date the offer is made
- the address of the property
- details of the certificate of title for the property
- the purchase price you are offering
- details of any fixture & fittings to be included as part of the sale (these are no longer free from stamp duty)
- the amount of deposit to be paid on acceptance of the offer. (no more than 10% of the purchase price and is often less).
- the amount of finance and where you intend to get the finance (eg. your finance broker – we recommend Accrete Financial Solutions)
- the time frame in which the finance approval must be obtained ,b>(this time frame is commonly 21 days but it can be a longer time frame, try to avoid it being any shorter).
- any special conditions you want to include as part of the offer and the time frame for these to be cleared.
- the settlement date (it is common for this to be 28 days after finance approval)
- the settlement agent both parties propose to use.
When buying a house Perth it is important that you include purchasing conditions that are suitable to you when you put in an offer.
You can make a contract subject to almost anything.
The other party must agree to the conditions so you need to be realistic with the conditions you set.
Some typical conditions include:
- Subject to finance, this is generally 21 days but it can be a shorter or longer period.
- Subject to a satisfactory inspection.
- Subject to a satisfactory termite inspection.
- Subject to the chattels, fixtures and fittings as seen on the date of inspection.
- Subject to all electrical and plumbing items to be in good working order prior to settlement.
- Subject to all council and regulatory approvals on all building and renovations.
- Subject to builder’s warranty insurance (for new houses and renovations over $12,000 such as a pool or pergola).
- Subject to approval by the Foreign Investment Review Board (if an overseas buyer).
- subject to the sale of another property.