This is the document that sets out the terms and procedures for selling and buying land in NSW. The most common contract is based on a copyright document prepared jointly by the Law Society of NSW and the Real Estate Institute of NSW. Most contracts will also have "special conditions" added by the conveyancer who drafts the contract.
What are special Conditions?
Special Conditions are also sometimes called "additional provisions". They are extra clauses added to the standard Law Society and Real Estate Institute Contract for Sale and Purchase of Land to cover specific matters relating to the particular transaction or matters which the conveyancer drafting the contract thinks are not adequately covered by the standard contract.
What is exchange?
In conveyancing practice in NSW, the person selling and the person buying each sign separate identical copies of the contract. These copies are called "counterparts". "Exchange" means the buyer gives their signed counterpart to the seller. The seller then dates both copies and gives the buyer the seller's signed counterpart in exchange. The purchaser must pay the deposit when contracts are exchanged.
What is the date of exchange?
The date of exchange is the date the seller dates the contract and gives the buyer the seller's signed counterpart.
What is a Section66W certificate?
66W refers to a section of the Conveyancing Act. In respect of a conveyancing transaction it refers to a certificate given by the buyer's conveyancer to waive any cooling off period. If there is no certificate, under the Conveyancing Act the cooling off period is 5 business days. A s66W certificate provides that there is no cooling off period.
What is the difference between joint tenants and tenants in common?
If you own property as tenants in common and one of you dies, the deceased owner's share forms part of their estate and is dealt with according to their Will. Tenants in common can specify the exact shares they hold and can deal with their own share independently of the other tenant/s in common.
If you own property as joint tenants and one of you dies, ownership of the property automatically passes to the surviving joint tenant/s. A joint tenant cannot deal with their interest in the land independently of the other joint tenant/s.
Does my real estate agent need a contract for sale before advertising or showing my property?
All real estate agents will need a copy of the contract before they start to advertise or show your property to potential buyers.
Am I responsible as the vendor if any damage occurs to the property before settlement?
Yes, the risk of damage remains with you 'the owner' up until settlement.
What if I make a verbal offer and it is accepted by the owner/s, does it legally bind me to my offer?
No, before exchange of contracts take place, both the buyer and seller can change their minds despite any verbal promises.
If I pay a holding deposit only, can the vendor sell to someone else?
What happens if I cannot settle on the due date?
In every contract for sale there is a clause that states that the buyer will have to pay penalty usually a percentage of the balance of the purchase price calculated on a daily basis.
I discover on my final inspection that the property has been damaged and there is rubbish left inside and outside of the property?
Generally, settlement will be postponed until the vendor compensates the buyers in some way and repairs any damage and removes all rubbish from the property.
Do I need to attend settlement?
No, you are not required to attend settlement. Settlement is attended by the us and your bank. We will call you as you soon as settlement has taken place.
Who notifies the authorities that I have purchased a property?
We will notify the local council and strata manager (if applicable) of the change in ownership. However, the local council will often wait to update their records until they are notified by the Land and Property Information. You will need to notify the electricity company, telephone line provider etc.
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