What Should You Check Before
Signing a Property Contract?
Buying or selling property is a major financial and legal decision. Before signing a property contract, it is important to understand the terms, conditions, and obligations involved.
A contract may be legally binding once signed, so getting legal advice before signing can help you avoid unexpected risks.
1. Check the Property Details
Make sure the contract correctly states the:
- Property address
- Title and lot details
- Purchase price
- Land and property details
- Included items, such as appliances or parking spaces
Any errors should be corrected before signing.
2. Review the Deposit and Settlement Terms
Check the deposit amount, payment date, and settlement date. You should also understand what happens if settlement is delayed or either party fails to meet their obligations.
3. Understand Special Conditions
Property contracts may contain special conditions relating to finance, inspections, repairs, settlement, existing tenants, or other requirements.
Make sure you understand each condition before agreeing to it.
4. Check the Property Title
A title search can identify matters that may affect the property, such as:
- Easements
- Restrictions
- Mortgages
- Caveats
- Other registered interests
These matters may affect how you can use or develop the property.
5. Consider Planning and Zoning
If you plan to renovate, subdivide, develop, or operate a business from the property, check whether your intended use is permitted under applicable planning and zoning requirements.
6. Understand Cooling-Off Rights
Cooling-off rules vary between Australian states and territories, and some transactions may be exempt. Do not assume that you can cancel a contract after signing.
Your lawyer can explain whether a cooling-off period applies to your situation.
7. Know Your Legal Obligations
Before signing, understand what happens if you breach the contract. Depending on the circumstances, you may face financial loss, penalties, or other legal consequences.
Why Get Legal Advice Before Signing?
A property lawyer can review the contract, explain important terms, identify potential risks, and help you understand your rights and obligations.
Getting advice before signing can be much easier than trying to resolve a legal problem after the contract has been signed.
Property Contract Checklist
Before signing, check:
☑ Property and title details
☑ Purchase price and deposit
☑ Settlement date
☑ Special conditions
☑ Inclusions and exclusions
☑ Easements and restrictions
☑ Planning and zoning requirements
☑ Cooling-off rights
☑ Your obligations if the contract is breached
Get Property Law Advice From Law Empire
Whether you are buying, selling, investing in, or developing property, understanding your legal obligations is important.
Law Empire can assist with property contracts, conveyancing, property transactions, and property-related legal matters.
Contact Law Empire today to discuss your property matter and obtain legal advice before signing.
Disclaimer: This article provides general information only and does not constitute legal advice. Property laws and procedures can differ between Australian states and territories. Obtain independent legal advice about your circumstances.
