Spot the difference Part 1 … Contract for Sale
06 Aug 2019
Many people in our community live in NSW, but Canberra is their main centre for work, shopping and recreational activities. If they’re buying a property, however, they may not realise the differences between the ACT and NSW conveyancing systems. In this series of articles, Margaret Young explores differences between the ACT and NSW systems.
In Part 1 of the series we look at the differences between Contracts for Sale in NSW and ACT. (You can read Part 2 here.)
Part 1 Contract for Sale
A Contract for Sale is the agreement between the buyer and the seller. It includes all the terms and conditions of the sale.
Standard conveyancing contracts in both the ACT and NSW tend to follow the same principles – they out the terms and conditions of transferring a property from the seller (vendor) to the buyer (purchaser).
Generally, the front pages of the contract are similar and include the names of the buyer, seller and agent, inclusions and purchase price. However, the required documents that form the body of the contract in ACT and NSW are not quite so similar. These documents change what a buyer is required to carry out as part of their due diligence.
The contents of the standard contracts for ACT and NSW are outlined below.
ACT Contract for Sale
Key documents in the ACT Contract for Sale include:
- ACT printed (blue) pages – these pages outline the general terms and conditions of the contract, including penalty interest amounts and the Notice to Complete terms
- A title search – this will note the seller’s details, the property and any interests that may be registered on title
- A deposited plan or a units plan
- Lease Conveyancing Enquiry – this outlines details of the crown lease.
Additionally, for a house or ‘B’ class unit, a pest and building inspection is required. This is a report on the buildings on the property, including an inspection of ACT Government file and a pest report. For a unit, a section 119 Certificate, including the last 3 years of minutes of strata meetings, must be included.
NSW Contract for Sale
A NSW Contract for Sale includes less information about the property than an ACT Contract for Sale:
- NSW standard printed pages, similar to the ACT, outlining the general terms and conditions of the contract
- A title search
- A deposited plan or strata plan and any other dealings registered on title
- A Section 10.7 Certificate
- Sewer plan showing drainage.
If the property has a swimming pool, a swimming pool registration and compliance certificate must also be included.