It is also important that major documents and vendor disclosures are included in the contract.
"The major disclosures pertain to Section 149 Certificate (zoning)," says Morrison. "Ensuring everything is in the vendor's name and that everything is legal and upfront – they are the big ones that need to be attached to the contract."
Other disclosures include:
- Certificate of Title
- Owner of the Land
- Sewerage main diagram
- Pool Compliance Certificate
“I believe the Certificate of Title is the major document in any contract," says Davidson. "This is the first document that any legitimate solicitor has a look at to understand encumbrances on the property. It tells you about caveats, mortgages or any easements running through the property.
“It is also imperative that you always reference the ten per cent deposit on the front page of the contract – even if a five per cent deposit has been requested. I would then advise the agent to put a ‘reduced deposit clause’ or ‘deposit instalment clause’ in the contract.”
Authority forms
A big issue for agents and auctioneers is how to sign an Authority Form and secure a deposit if a purchaser is bidding on behalf of a third party.
"For example, for a super fund, you must have all the documentation on the day to give the authority to bid," says Morrison.
"All we can do as agents is use best practice and try to establish as many safeguards for the owner as possible," adds Davidson.
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