When completing Contracts of Sale please ensure that you consider:
Full names of the parties purchasing and selling. This eliminates the need for amending the Contract after it is signed.
Ensure that middle names are stated.
If you use more than one name, consult with their legal advisor prior to the Contract being drawn.
Full name of the company including ACN and registered address
Ensure that the contract is signed by the appropriate authorised persons
One director/one secretary
Is the company acting as a trustee of a trust? If so it needs to be set out correctly in the contract
Any changes to the Contract need to be initialled by both parties.
List all items included as part of the sale.
Please be very specific, for example: dishwasher, tv aerial, cubby house, sheds, garden furniture.
Purchasers tend to “assume” that certain items are included in the sale and this can lead to frustration, disappointment and further legal costs.
Correct description of the property
Example: All that land described in Volume: 10101 Folio 101 being Lot 1 on Plan of Subdivision 133456A known as 5 Dave Street, Lilydale, Victoria 3140.
Ensure that special conditions are written clearly. It is common for disputes to arise in relation to the interpretation of special conditions.
Consideration must be given as to whether the special condition is for the benefit of the purchaser or the vendor. It is preferable that you seek advice from your legal adviser regarding the wording of any special condition.
Common special conditions
Sale of purchaser’s home
A complete copy of Contract of Sale and Section 32 Vendor’s Statement is provided to your legal adviser.
Delays in providing the signed Contracts to your legal adviser can result in cooling off periods having expired before you receive legal advice regarding the Contract.
It is preferable that a copy of the Section 32 and Contract is given to your legal adviser to review before you sign any documents.