Selling Property in NSW: The Importance of Getting the Contract Right
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Preparing a Contract for Sale of Land in NSW is a critical step in any property transaction. For vendors, the contract sets the legal framework for the sale and defines the rights and obligations once contracts are exchanged. Errors or omissions at this stage can expose a vendor to issues such as delays and disputes.
In NSW, a property cannot be marketed for sale without a draft Contract for Sale. The contract must include prescribed documents, also known as vendor disclosure documents. These include:
- a current title search;
- a plan of the land;
- relevant dealings affecting the land;
- a Council Planning (section 10.7) Certificate; and
- a sewerage diagram.
Depending on the property, additional documents may be required, such as strata records, pool compliance or non-compliance certificate or notices affecting use or development.
The consequences of missing disclosure documents can be significant. A purchaser may have a statutory right to rescind the contract within 14 days after exchange if certain prescribed documents are not included, which can result in a sale being terminated even where price and key terms have been agreed.
It is also important that proper special conditions are drafted. These can address things such as potential property issues, manage tenancy arrangements and tailor settlement terms. Poorly drafted or missing conditions often lead to disputes, which can cause delays in settlement, prompt renegotiation or allow the purchaser to rescind the contract.
Timing is also important. Preparing the contract early allows potential issues to be identified before a property is listed. This reduces pressure during negotiations and helps avoid last minute amendments that can unsettle a transaction or lead to a purchaser withdrawing.
CJM Lawyers assists vendors across NSW with the preparation of Contracts for Sale of Land, ensuring that disclosure obligations are met and that the contract accurately reflects the property and the vendor’s position. We provide practical advice on risk management, special conditions and settlement planning.
A well prepared contract is the foundation of a smooth property sale. Early legal advice can reduce risk, protect value and support a timely settlement.
If you would like advice on preparing a Contract for Sale, contact the CJM Lawyers NSW property team.
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