Advice needed on private sale purchase

Hi, new here and just after some advice on purchasing my second property.
I have found an apartment in Melbourne's northern suburbs which was advertised as a private sale at a certain price. The property had only been on the market 3 days and as I have been looking for a long time and am happy with the price I agreed to purchase the property at that price as I was confident if I did not get in first I would lose it, however the contract of sale isn't even out yet.
After speaking with the rea I sent an email with my details and the offer and have agreed to purchase it subject to finance and subject to review of the contract by my solicitor once it becomes available.
The rea called me and said I can come in on monday and sign some paperwork and leave a small deposit ~$1000.
Now as the contract of sale isn't even available until later in the week obviously I won't be signing that, I'm assuming it will be a document stating I wish to purchase the property at a certain amount and subject to review of contract and finanace. My query is, should there be something in the contract such as a caveat or anything I am not happy with, does the fact I said 'subject to review of contract by solicitor' allow me to withdraw and receive my deposit back? How much strength would that statement legally give me?
Thanks in advance and if there is anything I should be doing which I havent covered I'd be thankful for any extra advice. Cheers
 
If it is a private sale how come a rea is involved?

You can pay a deposit now, a holding deposit, but you won't be entering a formal contact until you sign a contract. You won't know the terms you are entering into.

Giving a $1000 deposit provides you with no protection at all. The vendor could sell to anyone, but it may show you are serious.

Just make sure you put appropriate conditions on your handing over of the 'deposit'.
 
If it is a private sale how come a rea is involved?

You can pay a deposit now, a holding deposit, but you won't be entering a formal contact until you sign a contract. You won't know the terms you are entering into.

Giving a $1000 deposit provides you with no protection at all. The vendor could sell to anyone, but it may show you are serious.

Just make sure you put appropriate conditions on your handing over of the 'deposit'.

Sorry, by private sale I meant not an auction sale. I understand the holding deposit doesn't mean the property is under offer, it is more an intention of mine to buy the property. In regards to these conditions, would a statement such as 'conditional to review of contract of sale by solicitor' be sufficient should there be anything in the contract I am not happy with?
 
You cannot buy a property without a contract of sale and vendor statement...so whatever you do now has no legal basis. Hence just wait for them to be issued then you can start negotiating terms.
 
You cannot buy a property without a contract of sale and vendor statement...so whatever you do now has no legal basis. Hence just wait for them to be issued then you can start negotiating terms.

Of course you can buy a property without a formal contract of sale and vendor statement. Happens all the time. The contract could be binding but may not be enforceable.
 
Terry, if the contract is unenforceable because of the Sale of Land Act, then it cannot be bought without the vendor statement. There is no need to be cute and confuse the OP.
 
Thank you both for your input, greatly appreciated.
I understand by putting this holding deposit it is an act of good faith that I will buy the property and sign the contract once it becomes available. Is it better for me to write something up and get the rea to sign as well to ensure the holding deposit is refundable and also the conditions?
Aaron I understand your viewpoint on not signing anything until the contract is out, but as I feel this property is in pretty hot demand by the open for inspection I am keen to get on the front foot
I was thinking a document outlining the following
- Name and price
- Conditions such as review of contract of sale and finance
- Deposit left and refundable if conditions not met
 
While I appreciate that you like the property, there is just no legal basis for giving the agent an early deposit to 'secure' the property. They can't even legally sell it until you've viewed the section 32.

Even if the agent did agree to a 'subject to contract review' clause - what the hell does that mean? In contract law there is the law of contra proferentem where if a clause is ambiguous (as that is) it is read against the person who made it.

Like I said - just wait until the contract/s 32 is out, then negotiate your finance/other clauses and go from there. None of this contract review nonsense as it means nothing.
 
I would just make a holding depsot of $X which would be refundable if you did know go ahead - knowing this is essentially meaningless but does show you are interested.
 
A property cannot be sold without a section 32 have you viewed this yet. The 32 is one of the most important documents. I dont understand why you even consider getting tangled in all this without it private sale or not it must be available please take the advice from other members
 
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