Preparation of Contract – part 2 of 3
Summary of what we will learn in this webpage:
- How to fill in the first 3 pages of the “Contract for the sale and purchase of land 2018 edition”
Step 2: Entering details for the first 3 pages of the “Contract for the sale and purchase of land 2018 edition“.
If an editable Contract has not been ordered from an information broker like SAI Global, please click Sample Contract 2018 Edition and open a sample Contract as reference.
Filling in the 1st page of the Contract:
1. Vendor’s agent – we type in the real estate agent’s firms details like its name, address, phone, fax and email. If no real estate agent is involved, we enter “Nil intervention by an agent”.
2. Vendor – these must be the same as the registered proprietors’ names on the title search.
3. Vendor’s solicitor – Leave blank if no vendor’s solicitors are involved. If not, this will be the solicitors firm’s name, address, phone, fax and/or email the vendor engages to act on his/her behalf for the sale of this property.
4. Date for completion – by default, it is normally pre-populated as “42nd day after the contract date (clause 15)”. Unless we desire to change this, the norm in Sydney and NSW is for completion to happen 42 days or 6 weeks later.
5. Land – this will normally be pre-populated with the property address and the title reference we entered in SAI Global while ordering this Contract.
6. Improvements – Tick either of vacant possession or subject to existing tenancies. If the vendor is selling subject to existing tenancies, we will also need to include the lease to the contract. We can also tick if this is a house, or a home unit, and does this sale come with garage, carport, storage space etc.
7. Inclusions – can be ticked by the vendor, or by his/her real estate agent; does this sale include items like blinds, built-ins, insect screens etc.
8. Purchaser – The exact and correct name(s) of the purchaser(s) are written here.
9. Purchaser’s solicitor – The purchaser will normally enter the name, address, phone and/or email of the purchaser’s solicitors firm here.
10. Price, Deposit, Balance – Normally these are filled in by the real estate agent. The price the vendor(s) have sold for, the deposit amount and the balance payable on completion day are entered here.
11. Contract date – this is the date of exchange. When the vendor has confirmed that s/he is selling this property to a particular buyer(s), this is the date where both parties sign on identical copies of this contract.
12. (the bottom of page 1) Signature part – When the vendor(s) are ready to exchange with the purchaser(s), the vendor(s) sign on the vendor line and the vendor’s witness sign on its line beside the vendor line.
Filling in the 2nd page of the Contract:
For a sale of an existing house (or strata unit), we normally leave this page as it is. Unless the property for sale is an investment property, under the “Land Tax is adjustable” heading, we can tick on the box beside ‘yes’ if we want the purchaser to help pay the vendor’s current year’s land tax.
The below shows the top half page of Page 2 of the Contract, with “Land Tax is adjustable” box ticked ‘yes’:
Filling in the 3rd page of the Contract:
We will normally tick what’s shown below, however, it is OK even if left unticked.