Whether you are looking to purchase your first property or your twentieth, a contract review is essential to help protect you from signing a contract containing unexpected clauses, unknown or hidden fees, or information, including omitted information, that may affect the contract.

What Is a Contract Review?

A contract review is a comprehensive, high-level summary of key issues or areas of concern relating to a particular property.

What Will You Find in a Contract Review?

Advice on the Terms of Sale

There are several things you will need to know as part of the terms of sale when purchasing a property. For example:

• whether a storage cage or carpark is included with your property;
• what items are included with the sale;
• your right to inspect the property prior to settlement;
• any restrictions on building or developing the property or land;
• any current liabilities against the property; and
• whether the property is sold with a tenant.

Without this information, you may be told by the agent or through online marketing materials that a fridge or washing machine is included in the sale when, in fact, it is not.

You may also be liable to pay thousands of dollars due to a notice or order that was unknown to you at the time of purchase.

Advice on Fees Payable and Applicable Penalties

There are hidden fees and penalties included in a contract of sale more often than you may think. For example:

• A few hundred dollars may be charged for a request to change the settlement date or time. The fee sometimes applies simply for making the request, even if the vendor does not agree to the change.
• The default penalty interest per annum under legislation is 12%. However, this interest rate is often increased through a special condition under the contract.

Advice in Relation to the Vendor Statement (Section 32 Statement)

A Vendor Statement is legally required to be included in a contract of sale and contains key information relating to the property.

This includes information such as:

• any easements, covenants or agreements on the title, or any planning overlays that apply to the property, all of which may impact your ability to build or develop the land;
• any utilities that are not currently connected; and
• any concerns or issues relating to the Owners Corporation, if applicable to your property.

We frequently identify circumstances where our clients could have been liable for thousands of dollars to the Owners Corporation due to flammable cladding. Once identified, our clients may choose to reconsider their offer.

Removal of Unfavourable Special Conditions

Many contracts include special conditions that are unfavourable to the purchaser, and purchasers may sign without realising they exist.

Common examples include special conditions waiving a purchaser’s right to claim compensation if the vendor breaches the contract or increasing the penalty fees a purchaser must pay.

Other Recommendations

Ultimately, we will advise if the property is subject to any other potential issues or risks, or if it is not compliant with any requirements under legislation.

We will also provide recommendations regarding any special conditions that you should include as part of your offer.

What Is Not Included in Our Contract Review?

Our contract review will provide advice on all information relating to the contract. We do not include information that is specific to your individual circumstances.

A common example is stamp duty. We cannot provide advice on the amount of stamp duty at the time of review, as the purchase price is needed to calculate this amount, along with your eligibility for any concessions or exemptions.

Need a Contract Review? Reach Out to Us Today

We recommend that you always obtain legal advice before signing a contract.

Our standard turnaround time for a contract review is three business days, with an option to expedite the review at no additional charge.

Contact our conveyancing lawyers in Melbourne via our website or call us on 03 9590 6180.

What Does a Contract Review Cover?

Whether you are looking to purchase your first property or your twentieth, a contract review is essential to help protect you from signing a contract containing unexpected clauses, unknown or hidden fees, or information, including omitted information, that may affect the contract.

What Is a Contract Review?

A contract review is a comprehensive, high-level summary of key issues or areas of concern relating to a particular property.

What Will You Find in a Contract Review?

Advice on the Terms of Sale

There are several things you will need to know as part of the terms of sale when purchasing a property. For example:

• whether a storage cage or carpark is included with your property;
• what items are included with the sale;
• your right to inspect the property prior to settlement;
• any restrictions on building or developing the property or land;
• any current liabilities against the property; and
• whether the property is sold with a tenant.

Without this information, you may be told by the agent or through online marketing materials that a fridge or washing machine is included in the sale when, in fact, it is not.

You may also be liable to pay thousands of dollars due to a notice or order that was unknown to you at the time of purchase.

Advice on Fees Payable and Applicable Penalties

There are hidden fees and penalties included in a contract of sale more often than you may think. For example:

• A few hundred dollars may be charged for a request to change the settlement date or time. The fee sometimes applies simply for making the request, even if the vendor does not agree to the change.
• The default penalty interest per annum under legislation is 12%. However, this interest rate is often increased through a special condition under the contract.

Advice in Relation to the Vendor Statement (Section 32 Statement)

A Vendor Statement is legally required to be included in a contract of sale and contains key information relating to the property.

This includes information such as:

• any easements, covenants or agreements on the title, or any planning overlays that apply to the property, all of which may impact your ability to build or develop the land;
• any utilities that are not currently connected; and
• any concerns or issues relating to the Owners Corporation, if applicable to your property.

We frequently identify circumstances where our clients could have been liable for thousands of dollars to the Owners Corporation due to flammable cladding. Once identified, our clients may choose to reconsider their offer.

Removal of Unfavourable Special Conditions

Many contracts include special conditions that are unfavourable to the purchaser, and purchasers may sign without realising they exist.

Common examples include special conditions waiving a purchaser’s right to claim compensation if the vendor breaches the contract or increasing the penalty fees a purchaser must pay.

Other Recommendations

Ultimately, we will advise if the property is subject to any other potential issues or risks, or if it is not compliant with any requirements under legislation.

We will also provide recommendations regarding any special conditions that you should include as part of your offer.

What Is Not Included in Our Contract Review?

Our contract review will provide advice on all information relating to the contract. We do not include information that is specific to your individual circumstances.

A common example is stamp duty. We cannot provide advice on the amount of stamp duty at the time of review, as the purchase price is needed to calculate this amount, along with your eligibility for any concessions or exemptions.

Need a Contract Review? Reach Out to Us Today

We recommend that you always obtain legal advice before signing a contract.

Our standard turnaround time for a contract review is three business days, with an option to expedite the review at no additional charge.

Contact our conveyancing lawyers in Melbourne via our website or call us on 03 9590 6180.