Why should buyers seek independent advice before signing a real estate contract?
- The real estate agent is working for the seller.
- Neither the seller nor the real estate agent has a duty of disclosure, so buyer beware!
- There is no cooling off period
- If you don’t put it in the contract it ain’t going to happen
- Most buyers think they have more protection that they do
- Because the cost of getting advice is way less than the risk of not doing so!
In addition, we believe that the standard Offer & Acceptance and General Contract Conditions are weighted in favour of the seller. And no one reads them until it’s too late!
I don’t think a week goes by where we don’t hear a comment from a buyer along the lines of “But doesn’t the seller have to fix that?” Unfortunately the answer if often “No!”.
In the absence of any special conditions, the buyer is basically purchasing the property as-is. So, if they find a broken window, leaking pipe or faulty lock during an inspection (and the problem existed when the contract was signed) the buyer has no claim on the seller.
Does the standard REIWA Annexure that allows the buyer to obtain a Structural Building Inspection provide sufficient protection?
We don’t think so as it only covers ‘Structural Defects’.
Quite often a Structural Report will identify thousands of dollars’ worth of maintenance issues that the seller is not obliged to fix.
So what advantages can we offer in reviewing or preparing your contract?
- We can suggest conditions/clauses that will that address the imbalance in the General Conditions
- We can suggest conditions that take into account the particular property and your individual circumstances
- We can include the equivalent of a “cooling off period”
- We are both licensed settlement agents with over 50 years of combined experience
- Our advice is based on the knowledge & experience gained through settling over 12,000 contracts
How much does it cost?
- $199 or to prepare or review contracts based on standard REIWA terms.
- $399 to review non-standard contracts (normally off-the-plan apartment or land subdivisions)
That’s as little as 0.04% of the median house price in Perth and nothing compared to the potential cost of a poorly drafted contract.
Contact us to arrange a consultation before it’s too late!