Make no mistake: buying a house is one of the most expensive purchases you'll ever make, as well as a highly significant legal step.

Thus, buyers should never flip aside important documents such as contracts of sale.

We know this may be tempting to do under pressure from homeowners and sales agents, but we encourage you not to literally sign your finances away.

Why?

Let's take a look from the ground up.

A contract of sale: what does it include?

Apart from the obvious importance of the agreed property purchase price, sales contracts feature crucial elements about the property that could make a major difference to your finances if not taken seriously.

Contracts generally include the following:

• Important dates, i.e., settlement and deposit times
• Inclusions and exclusions
• Penalties and consequences
• Fees and charges

Sales contracts often also include special conditions—essentially, additional "attachments" to the standard, basic contract.

Special conditions are particularly important, as they can give buyers additional rights and protection if the purchase doesn't go according to plan.

For example, if a building and pest inspection uncovers major termite damage, you can pull out of the contract.

Another common special condition is "subject to finances," where again, you are protected if your finances fall through.

NB: Special conditions can also protect property sellers if their plans go the wrong way.

Contract of sale: can I change my mind after signing it?

Yes, private treaty sales (properties not bought at auction) usually come with a cooling-off period after contracts are signed, or "exchanged."

Usually lasting about three to five business days, depending on where you live, cooling-off periods give you the chance to renege on a contract within this time without legal repercussions.

Yet, while such periods can be a lifesaver for buyers, you should never be blasé or complacent about this lifeline.

If nothing else, major contract issues discovered during the cooling-off period may take a lot longer than three to five days to fix.

And, once this period ends, the contract is binding.

In other words, buyers who back out after this period could lose their deposit as well as extra monies through legal consequences.

Contract of sale: who should review it?

The best person to review your contract is your conveyancer or solicitor, and you should already have been working closely with them on the property sale.

When examining the contract of sale, your legal aid will do the following:

• Check the owner's basic details to avoid a fraudulent sale.
• negotiate finance and date issues, if necessary.
• inspect special conditions and other clauses.
• discuss any points they believe should be included.

Contract of sale: should I review it?

Yes!

The sales contract (and what you agree to when you sign it) is ultimately your responsibility—and yours only.

That sounds scary, we know, but take the time to read this crucial document before handing it to your conveyancer or solicitor for review.

If there's anything you don't understand or are concerned about, make a note of it, discuss it with them, and don't sign the contract until you're happy with it.

We're here to help. 

Whatever home loan road you wish to take, Lending Loop would love to help you travel it! 

We’ve brought all the services you need under one roof, so we can find you the best home loans from more than 40 of Australia’s biggest banks and specialist lenders. 

Plus, we can also help you refinance your loan to help you keep more money in your pocket. 

So, give us a call today at Lending Loop.