The Red Flags in Property Settlement Contracts that you Need to Look for
When you fall in love with a home and make the decision to put in an offer, it’s easy to get carried away by the excitement of it and miss important items on your settlement contract. It’s important to obtain a copy of your contract and spend some time looking over it.
On the first page, you can verify title details such as the price (if not an auction), the inclusions and exclusions, the settlement period, whether it’s a vacant possession or leased, and whether GST is payable. Thoroughly check the basic terms as they may not suit your situation. For example, you may wish to move in right away but may be restricted by a ‘subject to existing lease’, so that is something to look out for. A‘subject to probate’ contract can also get you into a sticky situation and should really be avoided due to it being in such a grey area. For example, what if Probate was disputed after your offer has been accepted? In short, always check for any conditions on the sale.
Check for any mortgages, registered leases, caveats, easements or other legal restrictions. The council zoning certificate will spell out what types of development are allowed on the site, and covers issues such as flooding and heritage restrictions.
Vendors may be sneakily passing on their land tax costs or putting conditions on the sale and these things can be hard to spot if not checked over by a keen eye. Always have the contract reviewed early and by a licensed settlement agent, as this can also assist with negotiations and ensure you are getting the deal you are wanting.
For expert property settlement services in the Busselton area in WA, contact Nicole from Geographe Settlements.