The Propertytoolbox Blog

House Sale and Purchase Agreement – Checklist

You are putting an offer in on a house, the sale and purchase agreement has been drawn up (usually by the real estate agent) it is time to sign - for your own peace of mind check that all of the following are correct:

• Date - is the agreement dated correctly (at the top).
• Purchaser – The name(s) of the person(s) purchasing the house.
• Property - The Address, Estate, and Legal Description of the property – these should be the same as on the title document which can be provided (and checked) by your lawyer.
• Purchase Price – what you have offered - both in numerically and in words.
• Deposit - The deposit amount - these are funds that you must have available to pay if/when the contract becomes unconditional.
• Possession - Check that this date (the date you want to take over ownership of the property) is correct.
• Conditions - Check these are correct and agreeable to you.
• Tenancies – Check to see if there are any
• Futher Terms of Sale - These are also referred to as 'Conditions'. Check that any conditions you require are present, are worded correctly, and are agreeable to you.
• Schedule 1 (Chattels) - Are these what you expect.
• Check that all the pages of the agreement are present
• Check that no clauses in the agreement have been crossed out  - if they have - find out the reasons and the implications.
• Check that all the pages and amendments have been initialled.

Be careful when checking the name of the purchaser(s). You need to correctly name all of the people who will be owners of the property. These names can be people, company’s or trusts. If you are unsure who the purchaser of the property is going to be – you can add ‘or nominee’ after the purchasers name (i.e. John Smith or Nominee) – this gives you scope to change the name. But it really is best to know exactly who/what is going to be purchasing the property when filling in the sale and purchase agreement. Remember any change to the contract – even a change to the name is considered countersigning.

There can be conditions added to the sale and purchase agreement on both the first (Conditions) and ninth (Further Terms of Sale) page of the agreement. The 'Conditions' section provides a structure to the way in which the conditions are dealt with in the body of the agreement. Any conditions that are specified in the 'Further Terms of Sale' section can be drafted to meet your requirements - which is often preferable.

Tenancies can be an issue – if the property is tenanted check to see what the tenants lease agreement is. If they have a fixed term tenancy they have a legal right to live in the house until the end of the fixed term. If it is a periodic tenancy – 42 days notice needs to be given to the tenants (if you, or your family) are going to move in. For more info on tenancies check out the tenancy section of the department of building and housing website.

When you have finished checking have one final think - have you done all you possibly can to assure yourself that you know what you are signing? Are you feeling pressured? Don’t worry about taking a bit more time to do some more checks and research. Don’t sign until you are assured that you know what you are committing to.

Finally - It is always best, and we highly recommend, sending your sale and purchase agreement to your lawyer to look over before you sign.

For all you need to know about making an offer on a house – check out the Propertytoolbox house buying guide.