Pittwater Life November 2023 Issue

includes warranties and
representations about the
property which is being sold.
Essential elements of the
Contract include for example
a, zoning certificate, issued by
the local council and provides
details of planning controls and
matters which may affect the
property. A Sewerage service
diagram which shows the
location of the sewer lines and
a copy of the certificate of title
showing your ownership of the
property are crucial together
with copies of documents which
create easements, rights of way,
covenants or restrictions.
The warranties you make
about the property include
that you have not received
notice that the land on which
the property stands is not
proposed to be acquired by any
government or government
instrumentality which would
affect your enjoyment of the
property.
That the sewer service lines
are fully disclosed on the
sewerage service diagram and
that the planning certificate
provides an accurate of the
zoning of the land as at the date
of the contract.
If you have carried out
improvements or building
works you should include
copies of a building certificate,
an occupation certificate,
a copy of home owners
warranty insurance and if you
have a pool, a certificate of
compliance.
You may also provide to the
successful purchaser copies of
the plans as approved by the
council in the case of major
works.
Your solicitor usually
provides special conditions
to the contract. i.e. terms and
conditions additional to the Law
Societies standard conditions
found in the first pages of the
contract.
Special conditions are drawn
to protect the vendor’s best
interests. It may be that the
vendor is purchasing another
property at the same time
as selling and desires to
have both settlements occur
simultaneously. A special
condition which seeks the
release of the deposit for the
purpose of a deposit on the
new property may therefore be
included.
It is customary for solicitors
for vendors and purchasers to
negotiate many of the terms
and conditions of the contract.
For example, a purchaser may
want to have a shorter or more
likely longer settlement period
than the usual 42 days.
Often there are negotiations
over what is included in the
sale for example fittings and
fixtures or what constitutes
fittings and fixtures and in
cases where vendors are
downsizing furniture and
furnishings may be included or
offered in the sale.
All these matters must be
negotiated and settled before
exchange.
Another element vitally
important in the sale is the real
estate agent.
It is not lawful to show or
advertise a property without
a contract available for a
prospective purchaser to view
or obtain a copy. It is always
desirable that the vendor
has a solicitor responsive
to prospective purchaser’s
solicitor’s enquiries as they
examine the contract.
When the contracts have been
exchanged and the property
has been taken off the market
the deposit cheque is frequently
handed to the real estate agent
to invest in an interest-bearing
account until settlement. If
you don’t have an agent your
solicitor may do it for you.
At settlement the interest
earned on the deposit will
usually be split equally between
the vendor and purchaser.
These two articles have
endeavoured to provide
information on some of the
steps and matters which occur
in the process of buying and
selling residential property.
They are not an exhaustive
summary of the steps to be
taken but they may provide
some of the issues you should
consider when buying and
selling. It can be an extremely
complex area of law and should
not be embarked upon without
professional legal advice.
Comment supplied by
Jennifer Harris, of Jennifer
Harris & Associates,
Solicitors, 4/57 Avalon
Parade, Avalon Beach.
T: 9973 2011. F: 9918 3290.
E: jennifer@jenniferharris.com.au
W: www.jenniferharris.com.au
Business Life
The Local Voice Since 1991
NOVEMBER 2023 67