Contract for purchase - help checking?

Hi guys,

So I was going in to sign for a parcel of land tomorrow... suggestions from Rolf were to engage a lawyer last night to review contracts etc, but obviously being a newbie to the game it never crossed my mind as everyone signs for these off the plan estate land sales....

So given all I had was this weekend, I was hoping seasoned investors /purchasers or even those of a more legal background could have a quick squizz for anything susipicious, out of the ordinary for a buyer, or downright dangerous in:

1) Contract for sale
2) Offer and Acceptance form (I notice strata title in the header title - I was told this is a green title land lot not strata title, which I heard is more favourable being green)
3) Got attached a joint form of general conditions 2011? First I heard of it?


I'm more specifically confused how to properly filll out the Offer and Acceptance form... I know i am Lot 16 but what "whole/part" or "vol/ folio" to fill in on the form eludes me.

With the settlement date section - do I just go with the suggested date of the developer i.e. when titles are released, or do you have to write a physical date down as a definite?

What also (as an example) would one list under " Property Chattels including"... is this n/a for purchasing land obviously?

I have a family friend who runs a settlement agency, is this the same person to be nominated under "Conveyancer".... or is this meant to be a lawyer or someone within a bank (i haven't found what lender I will be using for pre approval/the settlement funds yet - still want to shop around).

I have had a look through the contract for sale... only thing I noted was no engineering plans were finalised or council plans approved... so the stage 1 plan shows no easements planned... agent mentioned maybe we could write something into contract for sale (but what???and how?) regarding easements, but obviously then my $2k deposit would still be paid?

Some more experienced/legal opinions would be much appreciated on how to best approach all these (the unknowns e.g. easements) or just plainly how the contract looks like? Not a private seller so I assume they aren't out to rort your money.... but just wanted to be safe. I note re: easements, the contract is pretty open catch all (along the lines of if one pops up , too bad - is this the norm?)

Attachments below. THanks.

Please note that page 22/25 of the contract, the lot numbering is incorrect relative to the seperate stage plan numbers - per seller. The incorrect lot number shows as 9 on page 22 (next to the corner lot number 10). However, should be 16 per the stage 1 plan released seperately.
 

Attachments

  • Contract - Stage 1.pdf
    3.6 MB · Views: 667
  • Offer & Acceptance.PDF
    2.6 MB · Views: 205
  • Jt Gen Forms 2011.pdf
    97.9 KB · Views: 51
In most states (I'm not certain about WA), you have at least a 3 day cooling off period where you can exit the contract at your discretion. During this time you'd get a conveyancer/solicitor to look over the contract, perform appropriate searchs and other legal due diligence and advise you on this. Call your friend first thing Monday.
 
There's no cooling off in WA.

No offence, but you sound really, really green. Is there any chance you can call your family friend tomorrow before you sign anything?

God if you're really stuck, you can give me a call and I'll come down with you.
 
It's a family friend. She has a young daughter so the chances are nought at this last minute stage. Especially given i had no idea they were required to review. Is it mainly to ensure that the offer and acceptance is completed correctly in its entirety. Or does the conveyancer also review the general contact (as attached in my OP(

Thatbum none taken. Ill admit it this is my first time. Completely green. I dont like it but that's how it is and I'm on a deadline of tom if i want this lot. Not ideal i know. Being a gen y im one of the firsts in my group going down this path so no precedence.

That offer sounds good. But rather than inconvenience you ive already attached the contract and all in post 1. can you review and advise from your comforts of home to avoid inconveniencing you? Or are there items you'd need to be there in person for to see/consider.

My appointments sscheduled at noon....hmm. Let me know your thoughts. Id hate to inconvenience a stranger due to being completely green if i can avoid. But if there's a high risk involved then perhapa i could use all the help /advice i can get.
 
Honestly, without looking at the contract even, I feel the REA is trying to stitch you up. A deadline of noon on a Sunday? If the REA was fair dinkum, they would allow you to have the contract for a period of time so your solicitor can review and discuss with you what you are buying. I think the REA has picked up you are a first time buyer and sniffs a sucker sale.

My advice would be to let midday expire tomorrow, have a 3rd party solicitor (not your family friend, she won't provide you with 100% unbiased advice), review the contract, and then see if the block is still available after that.

The worst you will be out a couple hundred dollars on soli fees. There will always be another block of land. Remembering this is a $halfmillion purchase, not some lounge chair on HSBC store card here!

Getting the first property right is paramount on your investment journey, even if it is your PPOR or not. Decisions you make today influence what ones you can and can't make tomorrow. Make an informed one.


pinkboy
 
That offer sounds good. But rather than inconvenience you ive already attached the contract and all in post 1. can you review and advise from your comforts of home to avoid inconveniencing you? Or are there items you'd need to be there in person for to see/consider.

My appointments sscheduled at noon....hmm. Let me know your thoughts. Id hate to inconvenience a stranger due to being completely green if i can avoid. But if there's a high risk involved then perhapa i could use all the help /advice i can get.

The problem is, there's about a million things that any diligent adviser needs to check you know about with these sets of documents. While I don't think the paperwork is non-standard, it is an off the plan purchase with considerable design restrictions, and I don't know how much you know and don't know.

That's before we even get to the 'normal' paperwork requirements for offer and acceptance in WA.

I completely agree with pinkboy - your first property is so important and I'd hate to see you get into something you regret later.

Feel free to PM me and I am happy to give you a call this morning at least, and possibly even meet up. I'm gen Y too and not so long ago went through this whole thing myself.
 
The Offer and Acceptance and the Joint Form are standard document. You may put extra clauses in the Subject To section of the O&A but you may or may not need some help writing these - for example Subject To no easements of burden being placed on this lot

Settlement can be designated as xx days after titles issued rather than a date. Usually 21 days after Titles is standard. 14 days might be mentioned but I would say 21 is better

The exact particulars, folio etc won't be available at the moment as I don't think they come until titles. For now Lot xx Street is good enough

The title on the O&A mentioning strata is fine. This is the correct document even if the lot is green.

If anything needs to be reviewed it is the first document which is from the developer. You need to understand this documents and what you are agreeing to comply with. Some people are comfortable doing this themselves, some will involve a lawyer. You can also have it reviewed by your settlement agent but they can't give legal advice.
 
Agree with Pinkboy

My advice is to slow the process down by appointing a lawyer and getting a pre-contract review - unless there is some reason why this purchase is so compelling that you have to proceed. Even if you have cooling off, why put yourself under that pressure?
 
ALWAYS have a qualified lawyer review a contract before execution esp for land. You might be buying land with covenants that render the land valueless or it may be a contract for unregistered land with no date in the contract for it to be reg.

There are loads of fixed price conveyance lawyers who can do this for a reasonable fee and that avoid costly hourly services others offer. Getting yourself one you can relate to and assist will add value rather than be a cost.

The views of people on SS include unqualified one's and no lawyer with a practice cert will give you advice for free in this domain. I would not sign until obtaining personal legal advice. When buying property there are three costs common to every purchase :
- Contract price, stamp duty and legal costs.

Even lawyers I know use a independent lawyer for their own acquisition.
 
pinkboy - it was a developer, not REA, I know this might not make too much of a difference.... the contract for the stage 1 was released 2 or so week sbefore, I read it but hadn't a clue (being quite green) and didn't think I needed to engage a lawyer for it.

I did speak in length to thatbum over the phone the next morning before the purchase - covenants did seem quite a few restricting what you could do design wise in order to have the state look 'nice' ... but other than that he didn't believe there was anything deal breaking that stood out.

I too didn't find anything too deal breaking. I'm not a lawyer but I assume being a certified professional that we would notice anything unusually restrictive pop out straight away.

That said I'm still a greenie and will admit it so - I ended up going in for the land, reading over it over the next hour or so, and 2 hours later signed up.

We drafted a clause stating that by 31 July I would have to for changing to another lot size or price should any significant services (easements) were to be drafted onto my lot. While this won't protect me from a price increase from stage to stage, it will cover me for at least having a big sewage pipe down the back... the developer consulted the project manager who felt comfortable enough to put the clause in given their low expectation of their being any easements/problems that will cut through the land anyhow.

I will get home tonight and write out the specific clause placed into the O & A.... worded differently to what westminster said but would be interesting to see if it covers it for legal purposes. At least somethings in there...

Got about 100 days to get formal approval now... I actually thought formal approval would be just before settlement (giving me time to shop around when rates are more 'curren't at the time than now), but origianlly it was 30 or 60 days? I extended as i'm away for a month shortly.

Paul - Appreciate your advice. Ok, my (hopefully not costly) mistake in not seeking out independent fixed fee conveyance lawyers. Is that what they call them in terms of lawyers specialising in property contracts re: purchase of land etc?

Would you have any to recommend perth side, or can this be done interestate over electronic communication? WOuld love to know one that does a decent price fixed... and who is good at what they do - recommendations? I assume would you get a similar legal opinion for the purchase of existing homes?

Restrictive covenants are listed on the stage 1 contract i attached above, mainly design related and onselling before full estate's lots are sold. Reading it I couldn't see anything else nasty... like i said the only uncomfortable things were 1) No easements known due to draft engineering drawings not finalised or council approval.

As some builders say it's amazing they can sell land prior to having this all mapped out - guess it's indicative in the peaking cycle nature of property when people are rushing this stuff out... or maybe it is just becuase of stage 1?? Correct me if I'm wrong... or do other developers have everything all available prior to stage 1 launch?

"or it may be a contract for unregistered land with no date in the contract for it to be reg. "

Could you or someone else elaborate more on this... and checking for registered land? Do you mean passing thorugh WAPC approval... or that they actually (the developer) owns the land purchased off the prior owners, subject to development works?

Qube is pretty decent from what I hear... i think I will definitely follow advice here and go down the legal conveyancer next time - particularly with more boutique development firms.... surely big firms like the Satterlys and Stockland have appropriately developed land, and more peace of mind?

Keep in mind the sellling agents mentioned i was one of the most prepared, asking the most questions etc. So it's scary to imagine that the rest of the individuals probably didn't even read through or ask further questions re: their contract!! And i'm still a total greenie...
 
ALso - the contract for sale - we both signed off on one copy.

Second copy I signed and initialed on each page, but noticed last night she hadn't signed off...

I"ll simply ask for a copy of the dual signed contract... but is it usually customary for the second copy to be signed off on?I assume she purposely didn't sign off.. rather than forget... (was asking a few questions).

If a copy of the original dual signed contract that she has will do, then I won't bother going back in person to get my physical copy signed off.

Thanks.

(P.S. Probably not appropriate for this forum, but more the process sub forum - next step would be to engage a decent mortgage broker? Or have people found you can eek out better deals by DIY as there is no conflict of interest for choosing the bank with the better kick back to the mortgage broker?)

Headed straight to display homes after - celebration homes were surprised, but is it standard to have angles of the lot available at this stage of the development?

Obviously they are alot greener than stockland and satterly themselves, what are other people's experiences in buying land off the plan in this way?

Probably will stick to established homes after I have built this once... or do a heck of alot more research and preparation than I gave justice to this time.
 
Do not DIY mortgage. Get one of the brokers on here to help you out

Normally they should have a lot plan but it really depends on how far forward they are selling these. The lot plan would have angles on it.

Normally they'd have an estate plan with no angles then some more detailed ones. They might not have those yet as they are selling very early
 
Yes i believe they are selling quite forward and hence the lack of engineering plans even. This should becomes available in the next two months I'm hoping..

Really hoping to get together a mortgage broker in that case Westminster who not just looks for the right financial product to get me forward but can discuss and educate /plot strategy. Obviously the first step off the ranks i have pencilled in by signing so that's too late. Time will tell how bad of a choice it is, but i guess there's still room in other aspects like financing strategy to plan for future strategy. Given your perth based if you had recommendations could you pm me them?also A good fixed fee legal conveyancer to deal with future purchases would be great if you use one regularly?
 
Could someone please advise on my question re: The importance of whether my second copy of the stage 1 contract should be signed by the agent also? Provided her copy has both our original signings, this would sufice?

Or would one go back to get the second copy signed for completness, even though they're mirror images?

Will requst a copy of the countersigned contract currently with her however in the meantime...
 
As long as you both have a copy of the signed contract, that should be fine. You checked both copies you signed were the same, right?
 
Yeap i read through the first copy and seemed ok. Second copy which only I've signed i glanced through given id seen the first in depth over that hour. Looked identical although i didnt put them side by side. I'll request the countersigned copy and do a mirror image check in my leisure time.
 
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