Your Contract Review: The Most Important Step Before You Sign

In the excitement of finding a property, it’s easy to view the Contract of Sale as a mere formality – the final piece of paperwork before you get the keys. 

However, this document is NOT that and far more than that!

The contract is the legally binding blueprint of your entire purchase. Signing it without a professional review is one of the greatest risks a property buyer can take.

A contract review is not a simple glance over, which many “free” contract reviews generally are!!

The contract review you deserve and should be requesting is a comprehensive, line-by-line examination conducted by a qualified Skilled conveyancer! 

You do this to identify risks, clarify obligations, and protect your financial interests. 

Here’s why it’s non-negotiable and when it must happen.

Why a Contract Review is Critical: Uncovering Hidden Risks

The standard contract is packed with complex legal terminology, but the real danger often lies in the specific details and any added “special conditions.” 

A professional and THOROUGH review is your primary defence against:

• A Flawed Section 32: The Vendor’s Statement (Section 32) must accurately disclose critical information about the property.
  • We check for missing rate and planning certificates, undisclosed easements, restrictions on Title, owner builder works, illegal building works, and onerous Owners Corporation rules that could impact your future use and the property’s value.

• Dangerous Special Conditions: Vendors sometimes add clauses that heavily favour their position.
  • These can include unfair sunset clauses, penalties for minor delays, or conditions that allow them to use your deposit before settlement. 
  • We identify these and can help you negotiate for fairer terms.

• Incorrect Property Details: 

Building permits: The property has an unapproved structure, such as a deck or extension, that is not mentioned in the Section 32.

Covenants and restrictions: The contract fails to disclose unusual covenants or restrictions on the title that could impact your use of the property, such as a prohibition on building a certain type of structure or parking a caravan.

Boundary discrepancies: The dimensions on the contract do not match the plan of subdivision on the title.

Incorrect information about encumbrances: The Section 32 fails to disclose an easement, charge, or other encumbrance on the property.

Unreported issues: The property has a history of flooding or a major building defect that was not disclosed. 

• Understanding Your Rights: The review process is your opportunity to get clear, plain-English advice on your cooling-off rights, finance and inspection clauses, and settlement timeline, ensuring you are fully informed before you commit.

When to Do a Contract Review: Timing is Everything

The timing of your contract review is just as important as the review itself. To be effective, it must happen at the right stage of the process.

• For Private Sales or Tenders: Before You Sign.
  This is the golden rule. Once you sign, you have 3 days cooling off before it becomes a binding contract.
  • You would be wise to have your Skilled conveyancer review the contract before you sign anything.
  • This allows us to help you negotiate necessary changes or add protective conditions, such as making the offer “subject to building and pest inspection” the sale of the buyer’s current property or “subject to finance,” before you are legally bound.

• For Auctions: Well Before Auction Day.
  This is absolutely critical. If you are the winning bidder at auction, you sign the contract immediately and there is no cooling-off period.
  • There is no way out. Therefore, you must engage your Skilled conveyancer to review the contract in the weeks leading up to the auction. 
  • This allows you to bid with confidence, knowing the contract’s terms and the property’s legal standing, or to walk away if significant issues are uncovered.

A contract review is not an extra cost; it is a vital investment in risk management. 

The fee for this service is a tiny fraction of the property’s price but protects you from potential losses amounting to tens or even hundreds of thousands of dollars.

Don’t gamble with your largest financial investment. 

For peace of mind and professional protection, contact Skilled Conveyancing on 03 9729 3512 or email us to review your contract before you sign.