Unintended consequences contracts
What’s in a property contract is important. Image – Canva.
  • The contract contains the sale and purchase details of the property
  • You should read and understand the Contract and Joint Form of General Conditions
  • You should seek advice before signing a contract

Like many jurisdictions, a written contract is required for the purchase and sale of property in Western Australia. Real estate agents use a standard REIWA contract form (from the Real Estate Institute of Western Australia).

The contract  should contain:

  • The correct names and addresses of the parties and description of the property
  • The purchase price and deposit payable (and when) and if finance is applicable (by when). [If finance is required, be realistic with dates, and check time frames with your bank or broker]
  • The Settlement date
  • What is being left in the property needs to be detailed to avoid disputes, such as blinds, fly screens, TV antennae
  • Any lawful special conditions such as white ant and building reports or subject to the sale of another property or a simultaneous settlement.

You should ensure that the dates are correctly reflected so your sale settlement proceeds are available before you settle on your purchase (if that is the case). This will ensure you will have your funds to settle.

There are conditions that neither party can contract out of as they are law, for example, RCD switches and swimming pool fences.

With strata properties, there are certain disclosures that are required by Law.

The Joint Form of General Conditions forms part of your contract. You should read these to ensure you understand them so you know your rights duties and obligations.

You should nominate and instruct a settlement agent before you sign your contract so they can advise you if any other conditions should be inserted.

Enjoy the ride to your property destination.

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Before making any decisions, please do your own independent research, taking into account your own situation. This article does not purport to provide financial, taxation, or investment advice. See our Terms of Use.

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