A contract is a legal agreement – an understanding between two or more people.
The Contract of Sale of Real Estate is the legal document that sets out the terms and conditions of the purchase of a property, usually put together by the conveyancer, solicitor or real estate agent and sets out the terms that both the buyer and seller have agreed to.
It is one of the several legal documents that form part of the conveyancing process and must be completed in order for a real estate transaction to be completed.
Some of the many details that will be included in a typical Contract of Sale include the following:
- Conditions of the sale, such as financing information or additional building inspections
- The names of the vendor and purchaser
- The property’s address
- The amount of deposit that must be paid
- The sale price of the property
- The date of the property settlement
- Whether the property will be available as a vacant possession, or if it is subject to a lease
- Other personal property sold as part of the package deal
- A contract is a legal agreement
- Although it won’t be activated until signed by the vendor as well, the COS is still binding with only one signature. Some buyers believe that this is merely an offer to be presented, but as the offer is being submitted in the form of a legal contract, it binds the purchaser from the moment they sign it. From this point, the only way that the buyer can get out of this contract is if they revoke the offer before the vendor signs it, or if the vendor chooses to reject the offer.
- Do not sign any contract you do not understand, so always get your solicitor to check the document before you sign it.
- Once executed by both parties you cannot cancel some contracts because you change your mind, even though some real estate contracts have a “cooling off “period