With the recent down turn in the property market, many people who had contracted to purchase a property are looking for opportunities to terminate their contract before settlement. The Property Agents and Motor Dealers Act, provides that in order for parties to be bound by a contract for the sale of a residential property, certain requirements must be met. The Act outlines the steps that must be followed by a seller or seller's agent when presenting a contract to a buyer via email, fax, post or face to face.
Although the requirements of each method of communication might slightly differ, each require that the buyer's attention be directed to the warning statement, the information sheet and the relevant contract and that the documentation be compiled in the following order:
(ii) the warning statement;
(iii) the information sheet;
(iv) the relevant contract;
(v) any other documents;
To comply with the Act, this process must be followed when the contract is presented to the buyer for signing and also when the contract is signed by the seller and forwarded to the buyer.
If a Seller or Seller's agent does not comply with the Act, then it could give the Buyer an opportunity to terminate the contract. If you need professional advice in relation to your contract, please call Nathan Hardman at MDRN Solicitors: ph: 3370 5100.
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