A Contract of Sale is an agreement relating to the sale / purchase of property, which expresses the terms and conditions of the sale. There are a number of sections in a Standard Real Estate Industry of Tasmania (REIT) contract that the real estate sales agent, you and your legal representative must ensure are completed in such a way to comply with the MyHome
Program requirements. These include: –
1. Completion Date – minimum of 30 days from the satisfaction of all special condition clauses.
2. Availability – Vacant Possession of the Property (under the MyHome Program, you must be able to move into theproperty on the day of settlement).
3. Finance Clause – minimum of 28 days from the date of the contract.
4. Inspection Clause – minimum of 21 days and the defect amount completed.
You should talk to your legal representative around the defect amount or percentage requirement, noting defect rectification following building inspection is a consideration requirement under the MyHome program for on market existing home purchases.
Bank of us has a panel of Building Inspectors under the MyHome Program. Once a contract of sale is executed it is important to immediately contact your Bank of us Lender to get this contract requirement underway to be able to meet condition time periods otherwise your contract may lapse.
There are other clauses the real estate agent and the vendor need to consider, however, the above four (4) are ALL required.
Real Estate Agents acting for Vendors must also:-
Understand that Vendor Warranty, Standard Condition 9 is required to support not exclude outcomes under statutory searches on the property.
Add an ‘Additional Special Clause’ to the REIT contract of sale with suggested wording as contained in below :-
Additional Special Clause – MyHome Agreement
The Purchaser’s obligation to complete this contract is subject to the following conditions precedent:
That within 28 days from the date of the contract, the Vendor, the Purchaser and Homes Tasmania enter into a MyHome Shared Equity Program Purchase Agreement (MyHome Agreement) in a form and substance satisfactory to Homes Tasmania, with respect to the sale by the Vendor, and the purchase by the Purchaser and Homes Tasmania, of the Property.
The Purchaser is the party benefited by this condition precedent.
Upon the satisfaction of this condition precedent:
(a) This Contract will be at an end and each party is then released from their obligation to further perform the Contract; and
(b) any deposit received by the Vendor under this Contract is taken to have been received under and in respect of the MyHome Agreement.
It should also be noted by real estate agents and vendors, that within the 28-day period (as per above), Homes Tasmania needs to be satisfied by the following documents, sufficient to support Homes Tasmania entering in to MyHome Shared Equity Program Purchase Agreement:
(a) Property valuation report prepared by a certified and licensed valuer;
(b) Section 337 Council Certificate prepared by the local government authority in which the property is located; and a
(c) Building inspection report that satisfies the minimum information requirements of AS4349.1-2007 (or subsequent versions of) Inspection of buildings Part 1: Pre-purchase inspections – Residential buildings.
Noting that the above constitutes general information and should not be included in the wording of the Additional
Special Clause.