Victorians will use a new contract for real estate transactions, beginning on 28 September. Transactions signed up before that date will not be affected by the introduction of the new contract.
The new contract will replace both the contract note and the contract of sale in current use.
Historically the contract note was intended to be a short form of the final contract containing the basic information needed to affect the sale, for instance; the price and amount of deposit. However this practice has become redundant over the past decade meaning it is not always the case that a contract of sale is drawn up after the contract note.
The new contract will be used by estate agents, lawyers and conveyancers. A more comprehensive document than those which it replaces, it was developed by the REIV, the Property Committee of the Law Institute of Victoria and Consumer Affairs Victoria.
Importantly, the contract should reduce the expense of conveyancing. It does away with the outdated legal procedure of delivering and answering requestions on title and substitutes a series of vendor warranties.
The warranties cover things such as the vendor’s right to sell the property and whether it is subject to pre-existing rights that could not be discovered by a search at the Land Registry, or affected by legal proceedings such as a family law claim.
Apart from simplifying the conveyencing process, buyers and sellers should notice little practical difference in the sale process.
If interested in learning more about this update please contact me today!
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