How To Read The Contract Of Sale Of Real Estate

Posted on October 29, 2008 by | 2 Comments

Peter Mericka B.A., LL.B OPINION
by Peter Mericka B.A., LL.B
Real Estate Lawyer
Qualified Practising Conveyancer Victoria
Director Lawyers Real Estate Pty Ltd

View Peter Mericka's profile on LinkedIn

The old Contract Note was a very simple document. It contained no General Conditions (these were incorporated by reference) and so purchasers were not frightened of it. Estate agents were never asked difficult questions, and purchasers readily signed it. The introduction of the new standard Contract of Sale of Real Estate has changed this. Consumers are becoming more aware of the need to understand what they are signing, and how the contract determines the progress of the sale. To give consumers and industry professionals easy access to a basic explanation of the General Conditions of the standard Contract of Sale of Real Estate, I have prepared a full explanation of the document for www.RealEstateDocuments.com.au.


New Contract – More Information


Clients often want legal advice about the Section 32 Vendor’s Statement and the Contract before they make their purchase, and most lawyers and conveyancers were able to satisfy the clients with basic advice about the nature of the purchaser transaction. However, since the Contract Note was replaced by the full Contract of Sale of Real Estate, providing brief and basic advice is no longer sufficient.


Most informed consumers now want to know precisely what they’re getting themselves into. When confronted with the full version of the new Contract of Sale of Real Estate many purchasers recoil, and want the General Conditions explained. This creates a problem for the estate agent, who is neither qualified nor entitled (the estate agent represents the vendor, not the purchaser) to advise the purchaser on the general meaning and effect of the General Conditions. I am sure that this problem has influenced the the behaviour of those estate agents who have attempted to use Form 1 of the new Contract of Sale of Real Estate in the absence of Form 2 (See “New Contract – Same Old Deception“).


How To Read The General Conditions


To assist consumers to understand the General Conditions of the new standard Contract of Sale of Real Estate I have written a guide which explains each and every clause of the General Conditions.


Consumers can easily access the document at www.RealEstateDocuments.com.au Estate agents and other industry professionals can direct clients to www.RealEstateDocuments.com.au if a potential purchaser or client requests further information about the General Conditions.


The document can also be accessed by clicking on the lick below:


“How To Read The New Contract of Sale of Real Estate


Click on this link:


www.RealEstateDocuments.com.au


 

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2 Comments

  • http:// says:

    I invested $22 to check it out and its a great idea. I learned something from it and it saved my time by being able to send my clients to it instead of trying to explain it myself. Hope you do some more and what about one about cooling off because plenty of punters get confused about that.

  • Hi HappyL,

    Our firm has been sending clients to such documents for some time now and we have found that it saves a lot time.  By having one very comprehensive document we can be sure that the client gets all of the information they need.  In addition, we can update it as necessary with the knowledge that everyone is getting the most up to date material.

    We have already prepared a document on “Cooling Off” and posted it on RealEstateDocuments.com.au as a Cooling Off Kit.  However, your comment indicates that perhaps we should promote it by way of a specific blog posting so that people become aware of it.

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