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Avoid costly errors in the contract process

Author: Three common issues that can trip you up at the last moment are:

Conditions
Most people have conditions applying to a property sale contract, such as the requirement to obtain home loan approval by a certain date. If the responsible party hasn’t met the condition by the agreed time, then the contract will default unless you agree to new conditions.

Most sellers are accommodating in these circumstances, but they are under no obligation to be so.

Delays in finance approval
Delays in finance approval are a big reason for unforeseen contract complications occurring. This can cause big problems if you haven’t allowed enough time for the approval to come through.

Two weeks is usually sufficient time to obtain approval but an increasing number of lenders now require up to four weeks. You can speed this process up by securing early finance approval before making an offer.

Incorrect names
If you don’t ensure the correct purchaser name/s are on the contract, this can cause issues. When multiple people are buying a property, each person needs to be included.

If one person has been missed from a sale contract and they want to be included, this might easily result in a hefty transfer duty payment.

If you are the owner of a property and wish to add names to the ownership title, transfer duty is not usually payable if it is on the grounds of ‘love and affection’. However removing someone from a title or adding children will likely incur extra costs.

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