In Tasmania, the common way to make an offer to buy real estate is by the purchaser signing a formal offer in the form of a contract, which outlines the important terms of the transaction.
Currently there is a ‘pro-forma’ Contract For Sale of Real Estate commonly used by real estate agents, conveyancers, and solicitors.
This contract is in two parts:
- Standard Conditions of Sale; and
- Particulars of Sale
The two parts together form the contract. Use of this form of contract is not mandatory and this form of contract can be adapted by agreement between vendor and purchaser.
The purchaser’s formal offer to purchase the property will include details such as:
(a) The purchase price being offered by the Purchaser;
(b) The details of the deposit offered;
(c) The description of the property and details of chattels (e.g. stove, curtains, heaters) being sold with the property;
(d) The timeframe proposed by the purchaser for settlement;
(e) ‘Conditions precedent’ required by the purchaser which may commonly include:
(i) A finance condition – that the Purchaser can get the money they need to buy;
(ii) A building inspection report condition – the Purchaser has had the property independently inspected;
(iii) A condition regarding the offer being subject to the sale of the purchaser’s home – if the purchaser cannot buy a new house without selling their current house;
(iv) A condition that there are no legal restrictions on the use of the property which may hinder or prevent its use for the purpose proposed by the purchaser (e.g. the Purchaser may only wish to purchase the property if they can secure council approval for development for units, for example).
At the time of writing change to existing state legislation is being discussed which may result in the introduction of a Vendor Statement which will be required when selling. Unlike other states except WA, at the time of writing, there is no mandatory cooling off period for a property transaction within Tasmania.