PREPARATION OF CONTRACT – PART 3 OF 3
Summary of what we will learn in this webpage:
3 other supplementary documents we normally include in the full contract
Namely, “Conditions of Sale by Auction”, “Special Conditions” and “Requisitions on Title” documents
Why are Vendor Disclosure Documents (or Prescribed Documents) important
Step 3: Now that we have ordered the “Contract for the sale and purchase of land 2018 edition” and other required documents (Vendor Disclosure Documents) that must go with this Contract – thereby creating a valid contract, we normally add a few more documents for compilation.
1. Conditions of Sale by Auction (if the vendor engages a real estate agent and sells the property by auction)
2. Special Conditions
3. Requisitions on Title
....................................................
To compile a valid contract with these 3 other documents, we will now put together all documents in the following order:
1. Contract for the sale and purchase of land 2018 edition (the first 3 pages, and the standard clauses with the watermarked address in pages 4 to 20)
2. Conditions of Sale by Auction
3. Special Conditions
4. Requisitions on Title
5. Title Search
6. Copy of Plan – Deposited Plan (could have more than one)
7. Copy of Plan or Plan Documents – Deposited Plan – 88B (could have more than one)
8. Dealing – Covenant (could have none, 1 or >1, depending on how many of these are on the Title Search document)
9. Dealing – Easement (could have none, 1 or >1, depending on how many of these are on the Title Search document)
10. Planning Certificate Section 10.7
11. Sewer Service Diagram
12. Sewer Mains Location Reference Sheet
We will also, between the documents in points 10 and 11 above, put an Occupation Certificate if this house is built after 2004. Swimming pool compliance or non-compliance certificate, Home Owner’s Warranty certificate, Certificate of Currency, if available, will also be included here.
So, here we have it – a FULL, VALID CONTRACT. Ready now to put the property up for sale and forward this contract to any prospective purchasers.
A valid contract is very important, because if we fail to even include one of the required documents / certificates, a purchaser has a right to rescind the contract within 14 days of exchange! (The legislation that underpins this is found in clause 17, Conveyancing (Sale of Land) Regulation 2017.)
This is highly undesirable, because after an exchange, in normal circumstances, the contract is binding on both the purchasers and vendors and if the purchaser(s) wants to pull out, s/he normally would have to forfeit the deposit of 10% of the purchase price. Allowing a purchaser to rescind within 14 days of exchange means that this purchaser does NOT need to forfeit the deposit, in fact s/he walks away getting back whatever deposit s/he has paid at exchange!
Summary of what we will learn in this webpage:
3 other supplementary documents we normally include in the full contract
Namely, “Conditions of Sale by Auction”, “Special Conditions” and “Requisitions on Title” documents
Why are Vendor Disclosure Documents (or Prescribed Documents) important
Step 3: Now that we have ordered the “Contract for the sale and purchase of land 2018 edition” and other required documents (Vendor Disclosure Documents) that must go with this Contract – thereby creating a valid contract, we normally add a few more documents for compilation.
1. Conditions of Sale by Auction (if the vendor engages a real estate agent and sells the property by auction)
2. Special Conditions
3. Requisitions on Title
....................................................
To compile a valid contract with these 3 other documents, we will now put together all documents in the following order:
1. Contract for the sale and purchase of land 2018 edition (the first 3 pages, and the standard clauses with the watermarked address in pages 4 to 20)
2. Conditions of Sale by Auction
3. Special Conditions
4. Requisitions on Title
5. Title Search
6. Copy of Plan – Deposited Plan (could have more than one)
7. Copy of Plan or Plan Documents – Deposited Plan – 88B (could have more than one)
8. Dealing – Covenant (could have none, 1 or >1, depending on how many of these are on the Title Search document)
9. Dealing – Easement (could have none, 1 or >1, depending on how many of these are on the Title Search document)
10. Planning Certificate Section 10.7
11. Sewer Service Diagram
12. Sewer Mains Location Reference Sheet
We will also, between the documents in points 10 and 11 above, put an Occupation Certificate if this house is built after 2004. Swimming pool compliance or non-compliance certificate, Home Owner’s Warranty certificate, Certificate of Currency, if available, will also be included here.
So, here we have it – a FULL, VALID CONTRACT. Ready now to put the property up for sale and forward this contract to any prospective purchasers.
A valid contract is very important, because if we fail to even include one of the required documents / certificates, a purchaser has a right to rescind the contract within 14 days of exchange! (The legislation that underpins this is found in clause 17, Conveyancing (Sale of Land) Regulation 2017.)
This is highly undesirable, because after an exchange, in normal circumstances, the contract is binding on both the purchasers and vendors and if the purchaser(s) wants to pull out, s/he normally would have to forfeit the deposit of 10% of the purchase price. Allowing a purchaser to rescind within 14 days of exchange means that this purchaser does NOT need to forfeit the deposit, in fact s/he walks away getting back whatever deposit s/he has paid at exchange!
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