10 Secrets to Successful Contracts
Looking to buy a property? Found the right one and thinking of making an offer?
A well drafted contract can be the difference between success and failure.
Consider the following before signing on the dotted line:
- The standard REIWA contract is based on the concept of BUYER BEWARE! In the absence of special conditions the buyer is purchasing the property “as is”.
- Consider including a “Due Diligence” Annexure that gives you time to make detailed enquiries and investigations (council approvals, termites, structural, bore flow, water quality, etc, etc, etc).
- Consider including conditions that require certain things to be done before settlement.
- If you want a water license transferred make it a condition – http://www.water.wa.gov.au/licensing/water-licensing/transfers,-trades-and-agreements#faq6.
- If you want the plumbing, electrical, bore and reticulation to be in working order make it a condition not just a warranty.
- If you want the seller to show you how the reticulation works make it a condition.
- Know the difference between a condition and a warranty – explained here.
- In the absence of conditions the final inspection is only an opportunity to ensure that the property is in the same state as it was when you made the offer.
- Don’t expect the seller to do anything that’s not in the contract.
- Remember that the real estate agent is working for the seller. Read every word of the contract. If you do not understand any part seek independent legal advice!
Finally, choose the best settlement agent you can afford (not the cheapest) and talk to them before you sign the contract.