Avoid costly errors in the contract process

The most important stage of any property purchase is the preparation and signing of the contract so that it reflects your requirements.

During this process, there are four common issues that can trip buyers up at the last minute.

Conditions

Most people have conditions applying to a property sale contract, such as the requirement to obtain home loan approval by a certain date. If the responsible party hasn't met the outlined conditions by the agreed time, then the contract can come to an end unless you agree to new conditions.

Most sellers are accommodating in these circumstances, but they are under no obligation to be so, so be sure to meet the requirements stipulated in the contract and keep the lines of communication open with the agent if you think you may not meet the deadline.

Delays in finance approval

Delays in finance approval are a big reason for unforeseen contract complications occurring. This can cause big problems if you haven't allowed enough time for the approval to come through.

Two weeks is usually sufficient time to obtain approval but an increasing number of lenders now require up to four weeks. You can speed this process up by securing pre-purchase approval before making an offer.

Incorrect names

If you don’t ensure the correct purchaser name/s are on the contract, this can cause issues. When multiple people are buying a property, each person's full legal name needs to be included.

If one person has been missed from a sale contract and they want to be included, this can easily result in a steep penalty of duty being paid.

Items included in the sale

To avoid any misunderstandings, it is important to specify any item you would like to be included in the sale in the contract.

It is also worth asking if anything is being excluded in the sale, that way you won't be surprised after settlement if an item you expected to be there isn't.