|
|
The Sale and Purchase Agreement
includes details of the terms and conditions of the sale. The
main points to cover are:
|
|
|
» Purchase price ...
While this is usually straightforward (once agreed), be
careful of whether or not the price includes GST (Goods &
Services Tax).
If the contract is silent on GST, then the price is deemed to
be GST-inclusive.
|
|
If the contract is silent on GST, then the price is deemed to be GST-inclusive.
|
|
|
» Deposit ...
A deposit of at least 10%, sometimes 20%, of total purchase
price is payable to the vendor.
|
|
|
|
|
» Possession date ...
This is the date of settlement when the transfer of title and
the resulting financial appropriations and adjustments take
place.
|
|
|
|
|
» Details of tenancies ...
It is important for both parties that any tenancies that must
continue after you have taken possession of the property are
stated in the contract.
|
|
|
|
|
» Chattels ...
The agreement for sale and purchase is only for the land and
building unless chattels are specially included in the
contract.
Generally, anything that is nailed to the building is most
likely a fixture, while anything that is easily removed will
probably be a chattel.
|
|
Chattels may include the oven, floor coverings, drapes, TV
aerial, light fittings, etc., and these need to be spelt out.
|
|
|
» Finance ...
The finance clause allows the purchaser a period of time,
usually 14 to 28 days, to arrange finance.
The "Subject to Finance" clause should be precise.
It is in the interests of all concerned - the real estate
salesperson as well as the vendor and buyer - that the
"subject to finance" clause is worded so that all
know just what is expected of them.
|
|
The
"Subject to Finance" clause should be precise.
|
|
0880