A property sales contract is filled with information that you need to know how to read properly. Spending a few minutes looking over the sales contract will allow you to identify any potential red flags that you have and potentially save you from a legal obligation that isn’t in your best interest.

Your property buyer agent in Sydney should help you overlook the contract for these key points.

Inclusions and Exclusions in the Contact

You might erroneously assume that the sale conveys certain items on the property, such as plants or a swing set. The contract, on the first page, should have a section that lists all of the inclusions and exclusions when making your purchase.

Buyers can choose to negotiate on price to have:

• Items removed that you may not want

• Include items you do want at a higher cost

Negotiating on price for inclusions is common and something that a buyer agent can direct you on.

Encumbrances on the Property

Some properties come with encumbrances, which aren’t necessarily bad, but they should be known about beforehand. A lien on the property is one of the biggest concerns because the property is part of a debt’s security.

If there’s a lien on the property, speak to a lawyer and discuss what the lien may mean to you as the buyer.

Otherwise, you’ll want to look for:

• Potential easements in place that allow someone rights to access or use something on your property. For example, there may be an easement to allow utility lines to cross your property or to put in a road to land that you own that is inaccessible otherwise.

• Covenants which restrict you from doing certain things on your land, such as property borders and how far in from the border you need to be to build.

If you don’t look for an encumbrance, you may find that your plans to build an outdoor structure or put a pool in are not possible.

Completion Date Information

How long will you have to wait for the settlement to be complete? In most cases, the process is done in as little as 42 days. There are some instances where the completion date may be extended because of the property being leased.

Knowing the settlement date is essential if you have plans to move in by a certain day.

Water and Sewer Diagram

If you flip to the back of your contact, you’ll find a diagram that tells you the entrances and exits for the sewer, water and stormwater. Knowing these locations is crucial because you won’t be able to build or improve these areas in most cases.

Reading through your sales contract and understanding all of these points can save you from agreeing to a contract that isn’t in your favor.