NSW need draft contract before marketing?

In NSW is it essential for a draft contract (with its searches) to be drawn up before showing the property (so it can be presented to buyers) or can that be done once a buyer expresses interest?

I have had 2 conveyancers tell me that is the case (draft contract must be drawn up first) and one lawyer telling me the opposite – to market the property first and then get the ball rolling with a draft contract once a buyer shows interest.

I know that in QLD you don't bother with the draft contract until a buyer expresses interest but I had heard that the searches that accompany the draft contract are an important part of correct procedure in NSW.

Anybody know the definitive answer here?

 

Why not just look at the law:
PROPERTY, STOCK AND BUSINESS AGENTS ACT 2002 - SECT 63 Proposed contract for sale of residential property

Note the requirements - al required documents must be attached.

 

What has your agent said?

Note that @Terry_w's comment only applies if you have an agent selling your property as the PSBAA only governs the actions of an agent.

 

Thanks for the advice.

I am not using an agent.

I seems that the law applies to private sales as well as to agents and that a contract must be drawn up before the property is offered for sale..

The_sale_process

 

This is not a link of a law, but some information supplied by the dept of fair trading.

The Act can apply to non-agents, but have a read of s63 again. This section appears to apply only to real estate agents.

Seek your own legal advice.

 

Thanks Terry.

I was enquiring as I wanted to advertise the property to get the process moving but had not identified a conveyancer I was happy with yet.

Think I have found one now so should be able to get a basic contract with searches soon I hope so the question is more academic now.

S63 does refer specifically to agents. Not sure if private sellers would be exempt but it would seem strange if that were the case.

 

The conveyancer is saying that it will take 5 days to get the draft contract together. I thought it would be a quicker turnaround. It is just a stock contract with the property details added.

I still have the PDF searches from the purchase in 2016 and have given them to the conveyancer and they are saying they can re-use the plan, 88b instrument and the sewer diagram. Does that sound right? If so what searches does that leave and how long do they normally take to get back?

Given that there is a contract in the pipeline is it reasonable to go ahead with the online advert?

It would be a week before I would be letting anyone through the place anyway. Not strictly by the rules but what are the risks as I would like to get the ball rolling?

 

As there is a week delay between the advert and access, buyers will go cold in that time.

There is a 2-3 day turn around for the S149 Certificate from council (unless you want to pay the premium for the express document).

Sewer diagram can be reused unless drainage work has been done to the site.

Which plan will you reuse? If it was prepared for another client, you may breach copyright by using it so you may need to contact the person who prepared it.

Only a title search need be provided, the S88b was probably one of the searches your solicitor completed when you purchased.

 

>>the S88b was probably one of the searches your solicitor completed when you purchased.

It was attached to the contract which the vendor presented

Seems to be to do with easements and covenants

Section 88B Instruments | InfoTrack

 

Thanks for the advice so far.

My conveyancer has provided a NSW contract using the 2017 edition template.

Is there no 2018 edition?

I think a contract using an out of date edition could be legally breakable by the purchaser (that was the advice given to me when I purchased a property a few years ago in QLD and the vendors used an out of date version of the QLD contract)

Also the sewer diagram has the neighbour's property highlighted instead of mine (this is actually the sewer diagram used in the contract when I purchased in 2016 so it was wrong back then too). It covers all the properties in the street but the neighbours block is highlighted with shading instead of mine. It would be quite easy in photoshop to swap the highlighting to my property without changing any other details.

 

It isn't 3 weeks into the new year. A new edition is published when there are revisions to be made, if the status who remains for years, is there a need to reflect nothing?

Having pondered your situation further, as it is a private sale you are not bound by the PSBAA, a contract of sale does not need to be prepared until you have agreed terms. Your conveyance may not be experienced in private transactions and only familiar with the Act.

 

Thanks Scott. Just thought I would check that they have indeed used the correct version as a wrong contract version could put a major spoke in the wheels of a sale I think.