It is always preferable to prevent problems, rather than try to fix them after the event. That is why Nest Legal offers two free contract reviews for potential purchasers. We much prefer preventing problems than delivering bad news once it is all too late!
Here are some examples of problems that could have been avoided by a thorough review of the contract and discussion with a solicitor prior to signing:
What goods come and what goods go?
It is critical for buyers to have any agreements about goods written and recorded in the purchase contract. An oral agreement with the real estate agent may not be enough to protect your interests. Get in touch with a solicitor before signing the contract so your solicitor can draft a special condition to protect your rights.
A warehouse loft conversion?
While it can be a savvy move to buy and convert commercial properties to residential housing, you need to make sure you are on the same page as the council, as some zones don’t allow new residential use. If you aren't sure about the particular zoning of a property and what it can be used for, your solicitor can help you make an informed decision.
Access before settlement?
Some vendors will allow purchasers early access if they sign a licence agreement (and pay a weekly amount equivalent to paying rent). However, if early access provisions are not specifically written in the sales contract, a right to early access cannot be assumed.
What’s down the road?
A vendor’s statement includes information about any approved proposals affecting the land, including any plans by VicRoads for the area. A quiet urban fringe block may not be so serene once there is a freeway next door. A comprehensive contract review ensures there are no nasty surprises down the road for your property.
There are many kinds of encumbrances that can feature on a certificate of title that appear relatively harmless, but can delay settlement on a property, result in extra fees and cause a lot of stress. These include covenants, easements and caveats over properties. If your lawyer has the opportunity to read and identify these potential problems before you sign, she can tell you if it is harmless, fix the problem before you sign or advise you on likely outcomes.
Subdivision registration timeframes?
A real estate agent may assure you that a plan of subdivision is on the cusp of registration but the contract may actually allow the vendor a significant period of time before a purchaser has any rights in this respect. Don’t rely on verbal representations about this – ask your lawyer to confirm where you stand before you sign.
If you want to put an offer in on a property, ask the agent to email you the Vendor's Statement and Contract and then email it to email@example.com to review (before you sign!)