What is a Purchase and Sales Contract?
A purchase and sales contract, also referred to as a deed of sale or contract of sale, is a legally binding purchase agreement between a buyer and a seller of property. The contract sets out the terms and conditions of the sale, including the price, the deposit, when the balance is due and any special conditions that apply.
The purchase and sales contract is an important document and it’s important to get it right for parties that are involved in the business of buying or selling. Hoe Lawyers can help you take care of all the legal details and make sure the contract is fair to all parties involved, such as the cooling off period, which enables the cancellation of a contract within a certain number of business days without any penalties.
If you are buying or selling property, it’s a good idea to get legal advice before entering a purchase and sales contract, as it is a legally binding document. Should you find yourself unsure or uncertain, do contact a lawyer in your area for more information or send us a message.
The Offer and Acceptance Contract is necessary in transactions where one party is buying a property in Western Australia, while the other is selling the said property. In the sale of real estate, these legal documents are also recognized in the sale of movable items, company shares, and other negotiable instruments. The contract, which is important in real estate transactions, is also called a Deed of Sale Contract or, more simply, a Sale Contract.
The following are some of the essential clauses that must be included in the contract or any Offer and Acceptance Contract:
- Parties concerned
- Date of the contract and closing date of the contract
- Purchase price or consideration paid for the subject matter/property
- Description of the property or subject matter sold
- Delivery terms, if any
- Payment terms
- Possession and other ancillary matters such as whether vacant possession is given to the purchaser at the time of completion
- The conditions, if any, that must be satisfied before the contract becomes binding on the parties
- Warranties, if any, given by the seller
- Exclusions and limitations of liability, if any, of the seller
- The law that governs the contract
- Signature blocks for the seller and buyer respectively
- Other miscellaneous clauses, such as a confidentiality clause or an assignment clause.
Here are the two important legally binding documents in an Offer and Acceptance Contract:
- The Contract for Sale of Land, which sets down all pertinent terms and conditions wherein the sale and purchase of a property will be accomplished. Solicitors and conveyancers can help you out in getting the paperwork in the sale of land done, while a real estate agent can help you find the property that you want or a potential partner as buyers and sellers.
- The Joint Form of General Conditions for the Sale of the Land, which lists down and discusses all the rights and obligations of the buyer and seller while in the pre-settlement period.
You’ll need to consider the following things when making an offer, as these types of contracts shouldn’t be taken lightly:
- The purchase and sales contract is a legal document that binds both the buyer and seller to its terms
- It’s important to understand the contract before signing it, as there may be clauses that are not in your favour
- If you’re unsure about anything in the contract, don’t hesitate to speak to a lawyer
- Get the contract reviewed by a lawyer before you sign it, to ensure that all clauses are in your best interests
- The purchase and sales contract is usually the final step in the home buying process, so be sure you’re ready to buy before making an offer
- The deposit is usually 10% of the purchase price, and is non-refundable
- The balance of the purchase price is usually due on or before settlement
- The contract should include a clause that allows either party to terminate the contract in the event of a failure to settle
- If you’re the purchaser, make sure you have finance in place and that your solicitor is aware of the contract
- If you’re the vendor, make sure you have a clear understanding of when the purchaser plans to settle.
If you’re buying or selling a property, it’s important to get legal advice before entering into a purchase and sales contract. Contact Hoe Lawyers today for more information.
How Can a Commercial Lawyer Help with Purchase and Sales Contracts in Perth
A contract of purchase and sales is a legally binding agreement between a buyer and seller of real property. It should be noted that this type of contract is different than a standard contract, as it pertains to the transfer of specific property. The government of Western Australia has outlined specific requirements for a valid contract of purchase and sale. Commercial lawyers in Perth can help clients take care of this contract and can provide a number of advantages and benefits to the buyer or seller.
When entering into a contract of purchase and sale, it is important to have an understanding of the specific terms and conditions that will be in place. This document will outline the rights and obligations of both the buyer and the seller, and it must be clear and concise. A commercial lawyer can help to ensure that the contract is fair and reasonable for both parties and can also provide guidance throughout the transaction.
When you choose to do it yourself, whether you are a buyer or seller, you may come across certain challenges that can be detrimental to the transaction later, such as:
- Failing to read the entire contract before signing
- Not understanding the legal jargon used in the document
- Not realizing that you are responsible for all costs, including legal fees
- Entering into a contract without getting independent legal advice
Hoe Lawyers’ team of commercial lawyers can help to avoid any of these potential problems, and can also provide assistance with the following:
- Reviewing the contract for you and advising on any potential issues
- Representing you in negotiations with the other party
- Preparing and reviewing documents on your behalf
- Helping to resolve any disputes that may arise during or after the transaction
Some of the advantages of working with a commercial lawyer include:
- Assistance negotiating the terms of the contract
- Dispute resolution services
- Review of the contract for compliance with government regulations
- Assistance understanding your legal rights and obligations
- Assistance if a dispute arises during or after the transaction
Working with a commercial lawyer can help to ensure a smooth and successful purchase or sale of real property. If you are considering entering into a contract of purchase and sale, contact our office today for a free initial consultation.
Why Legally Binding Contracts of Purchase and Sales Need Legal Aid
When purchasing or selling real estate, it is important to have a legally binding contract in order to protect both the buyer and the seller. A solicitor can provide legal assistance with this, ensuring that all aspects of the contract are covered. Without legal aid, there is a greater chance for disputes to arise and for the deal to fall through. This can be costly and time-consuming for all involved, so it is best to seek legal assistance from the outset.
When entering into a contract of purchase and sales for real estate, both the buyer and the seller should have their own solicitor. This will help to ensure that the contract is fair and legally binding. If either party does not have their own solicitor, then they should seek legal advice from a qualified professional.
By getting legal assistance with contracts of purchase and sales, both the buyer and the seller can protect their interests and avoid any costly disputes.