Before you sign: what to look for in a contract of sale
The contract is where the surprises live. A conveyancer will go through it properly, but knowing what to look for helps you ask the right questions early.
RentBuy Team
3 min read
Every home for sale in Australia comes with a contract, and the seller's side prepares it before the home is listed. You can ask the agent for a copy at the first inspection, and you should. Your conveyancer or solicitor will review it before you make an offer or bid, but here is what to look for yourself.
The basics
Check that the address, lot and plan numbers match the property you inspected, and that the vendor named is the registered owner on the title. Look at the settlement period: 30, 42 and 90 days are all common, and a short period can be a problem if your finance is not ready. Note the deposit amount and when it is due.
What is included
The contract lists the fixtures and chattels that come with the home. Fixtures such as built-in wardrobes and the oven usually stay; chattels such as curtains, dishwashers and garden sheds only stay if they are listed. If the agent has told you the fridge is included, it needs to be in the contract, not just in the conversation.
Conditions
By private treaty, you can ask for conditions: subject to finance, subject to a building and pest inspection, or subject to the sale of your own home. The seller does not have to agree, and in a competitive market a clean offer often beats a higher conditional one. At auction there are no conditions and no cooling-off period, so everything has to be done beforehand.
The searches and disclosures
Depending on the state, the contract will include or refer to a title search, a zoning certificate, drainage diagrams and any easements or covenants on the land. An easement for a sewer across the backyard limits what you can build there. A covenant might stop you from adding a second storey. Ask your conveyancer to explain anything you do not understand rather than assume it is boilerplate.
For apartments, ask for the strata records: the last two years of meeting minutes, the sinking fund balance and any special levies planned. A building about to spend a million dollars on cladding is a very different purchase from one that is not.
Cooling off
Most private treaty sales come with a short cooling-off period during which you can withdraw for a small penalty. The length and the penalty vary by state, and it can be waived. Do not rely on it as a substitute for doing your inspections first; use it as a safety net.
If something in the contract does not match what you were told, raise it before you sign. Changes are easy to negotiate at that point and very hard afterwards.
