February 17, 2022 - No Comments!

Contract for Sale of Land Wa Reiwa

A contract for sale of land is an essential document when it comes to buying and selling property in Western Australia. In fact, it is a legal requirement for any transaction involving the transfer of land or property. The Real Estate Institute of Western Australia (REIWA) has developed a standard contract for sale of land in WA, known as the Contract for Sale of Land or Strata Title by Offer and Acceptance (the Contract).

The Contract is designed to protect both the buyer and seller in a property transaction. It outlines the terms and conditions of the sale, including the purchase price, settlement date, and any special conditions. As a professional, let`s take a closer look at the Contract and what it entails.

Key elements of the Contract:

1. Offer and Acceptance: The Contract follows the principles of an Offer and Acceptance, meaning that the buyer makes an offer to purchase the property, and the seller accepts the offer. The Contract becomes binding once both parties have signed it.

2. The Purchase Price: The Contract includes the purchase price agreed upon by the buyer and the seller. This figure is usually negotiable, and it is essential to ensure that both parties agree on the price before signing the Contract.

3. Deposit: The buyer is required to pay a deposit upon signing the Contract. The amount of the deposit is usually 5-10% of the purchase price, and it is held in trust until settlement.

4. Settlement Date: The Contract outlines the settlement date, which is the date on which the buyer takes possession of the property. The settlement date is usually 30-90 days from the date of the Contract, but this can vary depending on the circumstances and negotiations between the buyer and seller.

5. Special Conditions: The Contract may include special conditions that are specific to the transaction. These conditions may include subject to finance clauses, building and pest inspections, or other conditions that the buyer and seller agree upon.

Why use the REIWA Contract?

The REIWA Contract is widely used throughout Western Australia for property transactions because it is a comprehensive document that covers all aspects of a sale. It is also an industry-standard document that is recognized by real estate agents, conveyancers, and lawyers. Using the REIWA Contract can also reduce the risk of disputes that may arise during the sale process.

In conclusion, the Contract for Sale of Land or Strata Title by Offer and Acceptance is a vital document when it comes to buying and selling property in Western Australia. It outlines the terms and conditions of a property sale and protects both the buyer and the seller. By using the REIWA Contract, you can ensure that your property transaction is legally binding and reduce the risk of disputes.

Published by: davefletcher

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