Contract for Sale – ACT

Hi Joe,
Although there are kits, I wouldnt risk doing it yourself. Using a solicitor ensures its done correctly, so many potential errors you could make that could cost you a bomb. The solicitor that I use will only charge for a sales contract once, ie. if you dont end up selling this time you can use the same contract next time you go on the market  (with a few minor changes made by the same solicitor). The only part you have to pay for twice are the searches if they have expired by then (eg: in Sydney the 149certificate is only valid for 6 mths), but you will have to pay the same price for these if you do the contract yourself anyway. You should ask your local solicitor if they will do this for you.

Cheers,
Victoria

Hello Joandchels,

I am interested in why you are trying to do this yourself and not use a solicitor? Are you also going to market it yourself or use an agent?  I have recently purchased in ACT and, being from out of state, I was surprised by the detail in the contract and vendors statement (It included the contract, all searches, EER reports, termite reports, building reports etc etc). Basically the amount of detail and transparency made me very comfortable buying interstate (as an IP). If you were to do this out of a kit, you might lose some of the appeal and potential buyers. I'd say use a solicitor, especially with the complexities invlolved in a lease hold property.

regards

Mark

Joe, you also need to consider that in the ACT you are required to provide building and pest inspection reports. Hence why Mark found it so easy to buy from interstate as these are not required in NSW. Once a sale goes through, you entitled to have these report costs added to the cost of the sale and all of this needs to be wrapped up in your contract.

There are also alot of adjustments for Council fees etc that need to be determined. For example if you have paid 12 months rates and now wish to sell 187 days in the rate period, you would be entitled to have the vendor pay you for the remainder of the rates period that you have already paid to council, Also consider water fees etc.

Often the agent handling the sale will provide the CoS, which will be fairly standard from REIACT and then you include special terms and conditions.

The use of a solicitor as part of your team makes sense and should be no more than about $1000 or less. Selling is a lot quicker and eaier than buying so often the fees are lower. There are conveyencors  (spelling lol) that will charge about $400 + disbursements for a simple sale.

If this is an investment property and not a PPOR then the solicitor fees will also be added to the base cost price of your investment reducing the amount of CGT. If it is a PPOR then it is simply a cost of the sale.

You would have a set amount minimum in your head for what you want to sell. Add $1000 to cover the solicitor cost and get it done professionally and remove the stress.

Dean

Doing up a contract is basic. you could stop into a local agent and ask for a copy of a sales contract but most times they will try get you to sell with them.
Next option would be downloading one of the net for maybe $20
I get mine from REIQ, I'm not sure if the same company does them where you are.
To sell your property I would recomend finding a good agent but if there is none around then yea I would sell it yourself, by using an agent they could possibaly get you a better price than what you could achieve by doing it yourself.

Hi Joe,
My solicitor charges $1500 including the searches, but that’s Sydney CBD prices, ACT may be a bit cheaper. Money well spent to ensure your deal doesn’t fall over.

If you know a lot about property law you could draft your own contracts. But what if you leave something important out and then go to your solicitor after the purchaser has signed – you will be locked into a costly mistake maybe. eg. You come to the settlement period and the purchaser says they don't want to proceed now and is rescinding. You having relied on the money from this sale coming through to settle on the next one and then that falls over too.

Joe, what about my comments? Seems you don't understand.