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Picture this: you are buying a house for the first time, ready and confident to buy a pre-existing property. The seller accepts your offer, and you are now receiving a contract of sale and memorandum of transfer in front of you. Now what?
These documents can appear vague and difficult to understand in the first place, and that is absolutely okay. That is when searching for a conveyancer near me in Sydney comes across as the solution to understanding these contracts. In this blog, we will cover everything about these two most important documents, familiarising you with the legal process to start your home-buying journey.
Let’s gather insights into details of the contract of sale and memorandum of transfer to make your home purchase a smooth ride.
What is a Contract of Sale?
The contract of sale is an essential legal document that a seller prepares before selling his house. It outlines the names and addresses of the seller and buyer, property description, terms and conditions of sale, assets included or excluded in the sale, or other important documents.
While the seller prepares a contract of sale and sends it to a buyer for signing, it is your responsibility to search for the term “conveyancer near me” before signing the contract.
The Role of Conveyancers in Contract of Sale
As soon as you find a reliable and licensed conveyancer in your location in Sydney, it is best to ask your conveyancer to review the sale contract. A conveyancer holds adequate knowledge and understanding of the legal terms and clauses that you will find difficult reading in the contract of sale.
Having a conveyancer by your side ensures everything is in order, and you can enter into a legal contract without any future problems.
Details Written in the Contract of Sale:
1. Names and Addresses of Both Parties:
The contract of sale clearly identifies the buyer and the seller, including their legal names and addresses. This helps both parties know who is involved in the transaction and have the right to complete the transaction.
2. Property Description:
The contract includes measurements and an accurate description of the property. This typically covers the address, legal description, lot number, and any unique characteristics or inclusions that will remain with the property, such as fixtures or furnishings.
3. Price and Payment Terms:
Purchase price and payment terms are another component that a seller adds to the list. This should include the exact purchase price that you agreed upon.
Conveyancing in Sydney ensures that a seller also outlines the deposit amount you must pay as a percentage of the purchase price after signing the contract and the payment schedule, method, and settlement date.
4. Special Conditions:
- The contract also outlines what happens in case of a delay in settlement, including potential penalties and transfer charges.
- The contract may contain specific conditions that must be met for the sale to proceed. This includes:
- finance approval date that outlines a timeframe during which the buyer must approve the financing to protect their interests. This helps sellers avoid delays in settlement while also ensuring you can cancel the contract on solid grounds without heavy penalties.
- Building inspections or pest inspections.
Conveyancing in Sydney makes it possible for you to avoid heavy penalties as they can negotiate with the other party if you are ending a contract after signing it.
5. Title Transfer:
The contract details how the title transfer will occur, including any steps that need to be taken to ensure a smooth transition. This process usually involves the signing and lodging of a Memorandum of Transfer, formally transferring ownership from the seller to the buyer.
6. Warranties and Representations:
The contract may include warranties and representations from both parties. For instance, the seller may warrant that they have full legal ownership of the property and that it is free from encumbrances. In contrast, the buyer might warrant that they have the financial capacity to complete the purchase.
7. Easement, Sunset Clause, and Cooling-off Period
Easement rights are rights to another individual or organisation to use a particular area of a property. A seller must include easement rights that he has given to another person to avoid any late surprises. This can include sharing a driveway with a neighbourhood or having a utility company running power lines or drainage systems across a seller’s property.
Also, the process of conveyancing in Sydney takes care of understanding the sunset clause which both the parties can take advantage of. For example, a buyer can include a condition for the seller to construct a specific area within a time to avoid contract cancellation. Similarly, sellers can include a sunset clause to transfer ownership only after full settlement is paid to avoid delays.
Role of Conveyancers:
A conveyancer for a buyer assists in reviewing and managing the contract of sale. They ensure that the document is legally sound and that it accurately reflects the agreed terms. To keep things clear on both ends, conveyancers often negotiate between the parties, reviewing any changes or special conditions.
In addition, they are responsible for examining and inspecting the property, including title searches and other legal checks, to ensure no hidden encumbrances or legal issues that might affect the sale. That is why they provide the signing and lodging of the Memorandum of Transfer to complete the legal process of transferring ownership.
Final Words
In conclusion, the contract of sale is a clear and transparent document that helps buyers and sellers enter into a property sale. Clearly outlining the terms, conditions, and legal requirements of the transaction helps ensure a successful and secure property purchase.
We hope you are clear about the contract of sale terms and why they matter to both parties. We have outlined who signs the contract, the terms and conditions included, and the role of conveyancers in Sydney to understand and review the contract before signing.
Are you searching for a conveyancer near me in Sydney? Get a complete transaction done with Easy Link Conveyancing. Book your first call today.
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