For Sale by Owner and a Real Estate Contract Note
Sell real estate privately through the no agents sale, for sale by owner private property sale website Privatepoint.
Private real estate sellers often forget to have a prepared Contract Note for interested parties to view when they are showing their property. It is against the law to advertise or market real estate for sale unless this Contract Note has been prepared.
What is a Contract Note? A Contract outlining the terms and conditions for the sale of real estate.
Things which are usually included are:
• Vendor Details
• Purchaser Details
• Solicitors Details
• Property Address
• Purchase Price
• Deposit Paid
• Settlement Date
• Cooling Off Period
• Inclusions
• Exclusions
• Encumbrances
• Special Conditions
• Signature of Each Party
• Signature of Witness
Once both the property owner and purchaser have signed this contract it becomes a legal binding document meaning both parties need to fulfil their obligations.
Why does the Contract Note need to be available at property inspections? So interested parties can cross reference the Contract Note with the actual property making sure they agree with the things which are included or excluded and any encumbrances the property might have. It also allows the purchaser to view the terms and conditions the vendors have stipulated allowing the purchaser to better prepare an offer.
Let’s not forget, that if you have a prepared Contract Note at the property then there is the chance that someone may be swept off their feet and make an offer you accept and will sign the document on the spot. This has been known to happen so you need to make sure you have the documents for this to be possible.
Where to get a Contract Note from? We highly recommend that you consult a solicitor or conveyancer about preparing a Contract Note. The Law Societies and Real Estate Institutes of each state have prepared a formal Contract Note which they sell to real estate agents and property owners for a small fee. Alternatively, there are DIY conveyancing kits on the internet which can be used and also Privatepoint has prepared their own Contract Note which we are happy to provide free of charge to any of our members.
Comments
Just wanted to mention that in Victoria the Contract Note was banned since September 28, 2008 and replaced by a new document – standard form of contract prescribed by the Estate Agents (Contracts) Regulations 2008.
Chris
06.10.08
12:48 am
This is a good reason why a for sale by owner should have a solicitor prepare the Contract Note or equivalent.
It is fine to perform DIY real estate sales but we recommend that you engage the services of a professional rather than perform DIY Contract preparation. Remember, a property is probably the largest asset you will ever own so making sure everything is legal should be a priority.
Bob Sacamento
06.10.08
7:39 am
About this time last year I purchased a property on the central coast near Gosford. I live in Wagga so everything was done through the agent.
I was not at the property for settlement and had the agent check over the property to make sure it was as per the contract. he gave it the ok and we sent through the check.
About a month later i went to the property and to my amazement the property was a mess. The walls and floors were filthy with dirt and there was still rubbish in the kitchen.
There was nothing in the Contract of Sale which stated the property had to be cleaned but I assume this was standard protocol when you hand over the property to a buyer.
Well the agent, I think his major concern was cashing in on the $40k+ commission he collected, even they could have paid for a cleaning to zip through the house.
Don’t assume anything and make sure everything is in writing!
Donna
07.10.08
7:58 pm
You are spot on Donna.
It is so important to make sure everything is in the contract and that you are aware of what you are signing. There is no question about it that every property owner needs to have their solicitor look over this document to make sure the buyer understands what they are entering to.
The added benefit of engaging a solicitor is that they can bargain the terms of the sale on your behalf with the seller’s agent or solicitor improving the settlement terms for you.
For sellers, it is empirical you have a Contract for Sale available for anyone to view who inspects the property. All too often sellers have not take the appropriate steps to make sure this document is complete before they advertise a property. Once again they should engage a solicitor and make sure all their requests are included in the Contract.
Rhino
10.10.08
6:30 am