Contract for the sale and purchase of land in New South Wales
Before marketing your property for sale your solicitor or conveyancer should prepare the contract for sale as it is a complex legal document.
In New South Wales the law requires that a contract for sale be available for inspection before the property is offered for sale.
The contract does much more than just deal with the price, deposit and settlement of your sale.
The contract performs many complex functions such as clearly defining the exact identity and location of the land; the nature of the legal title you are selling (e.g. is it Torrens title, strata title, company title etc); the zoning of the property (i.e. what uses are permissible, such as residential, commercial, industrial etc); the improvements on the land (such as houses, garages etc); any tenancies affecting the property; any encumbrances affecting the land, and so forth.
It is important to provide your solicitor/conveyancer and selling agent with a list of everything that will remain with the property after completion of your sale. This list will form the basis of the list of inclusions to be contained in the contract. This is a matter of negotiation as between the parties, however standard inclusions include such things as light fittings, floor coverings, curtains and blinds. These can also be excluded from the sale if you prefer, and if so it should be clearly noted in the contract.
The contract must contain a copy of the title documents, drainage diagram and the zoning certificate (s 149) issued by the local council.
It is advisable to have a survey of the land and buildings available when selling a property, although it is not a legal requirement to attach a survey to the contract.
A certificate of compliance should be obtained from the Local Council if you have recently undertaken major building works.
If the premises are leased check the expiry date and termination requirements if you intend to sell the property with vacant possession.
There are many legal issues to consider, certainly too numerous to mention here, so it is advisable to consult your solicitor or conveyancer.