When it comes to purchasing property in New South Wales, one of the most important documents involved is the contract of sale. This legally binding agreement sets out the terms and conditions of the sale, including the price, settlement date, and any special conditions.
So who exactly prepares the contract of sale in NSW? There are a few different parties involved, each with their own responsibilities.
Real estate agent
In most cases, the contract of sale will be prepared by the seller`s real estate agent. This is because the agent is usually the one who first makes contact with potential buyers, and will be responsible for negotiating the terms of the sale on behalf of the seller.
The agent will typically use a standard contract template provided by the state government, which includes all the necessary clauses and information required by law. They will then work with the seller to make any necessary amendments or additions to the contract, based on the buyer`s offer and any agreed-upon terms.
Solicitor or conveyancer
While the real estate agent is responsible for drafting the initial contract, it is recommended that both the buyer and seller engage a solicitor or conveyancer to review the contract before it is signed.
A solicitor or conveyancer is a legal professional who specializes in property transactions. They will be able to advise their client on any legal implications of the contract, ensure all relevant information is included, and make any necessary amendments or additions.
This step is particularly important for the buyer, as they will want to ensure they fully understand the terms of the contract and their legal obligations before committing to the purchase.
Buyer
While the buyer does not usually prepare the initial contract of sale, they can certainly make requests or amendments to the contract during negotiations.
For example, the buyer might request a longer settlement period, or request that certain fixtures and fittings be included in the sale. These requests can be added to the contract as special conditions, subject to the seller`s agreement.
Once the contract of sale has been signed by both parties, it becomes legally binding, and the sale process can begin. It is important for all parties involved to ensure that the contract is fair, accurate, and meets all legal requirements to avoid any disputes or legal issues down the line.