Once completed and signed by both parties, the contract by Offer and Acceptance becomes a legally binding contract on the vendor and purchaser of the property.
RE/MAX offices recommend and use the standard contract by Offer and Acceptance form produced by The Real Estate Institute of Western Australia, with its accompanying Joint Form of General Conditions For The Sale of Land, prepared by the Law Society of Western Australia and REIWA.
These copyright forms protect both the purchaser and vendor in that:- (a) The purchase price, cash deposit and final settlement date are noted. (b) A specific clause is inserted, specifying the source of finance required by the purchaser, the amount and latest date for approval of the loan. (c) Space is provided to list any number of special conditions requested by the purchaser or vendor, which become part of the legal contract e.g. the production of a certificate against white ant infestation prior to final settlement.
The 2000 Joint Form of General Conditions For The Sale of Land which accompanies the contract is important in that it clearly sets out the obligations of all the parties to the contract. An important clause in this regard is that if final settlement and possession of the property purchased are delayed unnecessarily by either party to the contract, then the aggrieved party has the right to levy a penalty rate of interest until final settlement is completed. You should also be aware that the purchaser’s cash deposit will be refunded in full if any of the conditions on the contract cannot be fulfilled, e.g. finance is not approved within the time span stipulated.
The dates inserted in the contract are of vital importance and whilst you may be keen to secure your purchase quickly, you should accept the advice of your qualified RE/MAX agent in allowing sufficient time for the necessary finance and settlement formalities to be completed.