Common Pitfalls in Property Contracts and How to Avoid Them

Buying or selling property in Perth, and throughout Western Australia requires a well-drafted agreement to ensure a smooth transaction. However, property agreements can be complex, and even minor oversights may lead to challenges.

Some common pitfalls in proprty contract include ambiguous or missing terms, such as unclear settlement dates or poorly defined inclusions. How to avoid these issues? Let's take a look:

Check Your Details

Errors in party details, such as incorrect names or contact information, can delay or even invalidate agreements. Double-checking all details and using full legal names is a simple yet crucial step. This is especially important where a company, self-managed superannuation fund or trust is involved in the contract.

Unclear property boundaries are another frequent problem. Disputes often arise when boundaries are not properly described or verified. Conducting a title search and reviewing survey plans can help ensure that legal boundaries are accurately referenced in the agreement.

Special Conditions

Special conditions like "subject to finance" or building inspections are vital, but they are often poorly defined or forgotten. To avoid this, conditions should be clearly outlined with deadlines, and their progress should be closely monitored during the settlement process.

Timeframes are another critical aspect, as missed deadlines for conditions or settlement can lead to penalties or deal collapses. Setting clear deadlines and working with professionals to track progress can help keep everything on schedule.

Similarly, agreements without provisions for default scenarios can create uncertainty. It is essential to include clauses outlining remedies for defaults, such as penalties or termination rights.

Disclosure

Sellers must disclose zoning restrictions, easements, or defects to prevent disputes. Buyers should thoroughly review disclosure statements to ensure all information has been provided.

Strata Property

Strata properties come with their own set of challenges, such as overlooked strata fees, bylaws, or shared facility conditions. Reviewing strata reports and financial records, as well as including details about strata obligations in the agreement, can mitigate these risks.

Get it in Writing

Verbal agreements are a common source of disputes, as they are not legally binding unless documented in writing. All agreements should be formalised in writing and updated whenever changes occur.

Trust the Professionals

Finally, attempting to handle property agreements without professional assistance can result in costly mistakes. Engaging a Real Estate Agent and using a licensed conveyancer or solicitor ensures that the agreement is legally sound and that your interests are protected.

Avoiding these pitfalls is key to a smooth property transaction. By paying attention to detail and seeking expert guidance, you can safeguard your interests and navigate the settlement process with confidence.

Need help with property agreements in Perth? Contact Adaptive Settlements for tailored advice.