An offer to buy a property will usually be made using the:

• Offer and Acceptance form (O&A) and
• Joint Form of General Conditions for the Sale of Land (General Conditions)

Contract of sale or O & A

The contract of sale contains the:

• details of the property 
• names of the seller(s) and buyer(s)
• name of the seller’s agent (if you are using one)
• details of legal practitioners or settlement agents for both the seller and the buyer
• purchase price 
• deposit paid 
• balance owing at settlement 
• special conditions, such as a ‘subject to finance’ clause.

As is sale

An "as is" sale means the property is sold in the condition the buyer viewed it. It means the seller does not have meet any other special conditions of sale, such as building and pest inspections.

Special conditions 

The seller and the buyer can add extra clauses to the contract as special conditions. All amendments and extra conditions should be signed and dated.

Conditions should be as precisely worded to avoid disputes later on. You should seek expert advice to ensure the special conditions are drawn up correctly.

Special conditions can cover a range of matters such as:

• a 48-hour clause which allows the seller to continue marketing their property where existing contract is subject to sale of another property
• repairs needed to be made to the property
• electrical gas and plumbing fixtures and fittings to be in working order
• allowing for a building, plumbing or termite inspection
• making the contract subject to finance
• making the contract subject to the sale of another property

Subject to finance 

If a loan is not required, the buyer should sign the box titled ‘Finance Clause Is Not Applicable’.

If a loan is required, the buyer will need to complete and sign the box ‘Finance Clause Is Applicable’.

The buyer can choose to list a preferred lender. If the loan is not granted by the lender, the contract will not be binding on the buyer.

If the buyer does not list a preferred lender or changes the standard finance conditions, they need to:

• use their best efforts to secure finance by applying to at least one lender
• provide written evidence of a loan application if asked in writing
• immediately notify the seller or agent in writing if a loan application is approved
• immediately notify the seller or agent if a loan application is denied or not granted. Provide written evidence of the rejection.

If the buyer fails to get finance in time, the contract may be terminated. The contract term can be extended if the seller and the buyer agree and amend the contract.

Even if finance has not been obtained, the contract may still be enforceable. The seller or buyer will need to provide appropriate notice to void it.

General Conditions 

The General Conditions are a standard part of most contracts to sell a property. It includes conditions relating to:

• encumbrances or claims on the title
• payment and holding of the deposit
• settlement, delays in settlement and penalty interest
• possession - including vacant possession
• representations the seller makes about the land or strata titled lot
• who is responsible for payment of costs such as the installation of underground power and connection to sewerage mains
• errors, risk, default and interpretation of terms; and
• requirements for strata titles disclosure from the seller. Further information can be obtained from Landgate’s publication titled, Guide to Strata Titles or by calling 1300 556 224.

When an offer is made, a printed copy of the General Conditions should be provided to both the seller and the buyer. It is important you read the General Conditions carefully.

Some conditions buyers and sellers should be aware of, include:

Underground power:

The seller pays if Western Powers costs are set before the contract date. They can pay Western Power directly. Alternatively, the seller can pay the buyer at settlement, who will need to pay Western Power.

The buyers pays if Western Power requires an underground connection after the contract date. They buyer also pays if costs, time, and payment method are undetermined by the contract date.

You can check your property’s area plan by contacting Western Power on 13 13 51.

Sewerage connections and septic tanks

The seller pays for connection if the property is able to be connected to the sewer system by the contract date. Alternatively, they can pay the buyer at settlement and the buy pays for the connection.

The buyer pays if no connection is available by the contract date. They may also have to pay for decommissioning septic tanks if the property is connected to sewers but tanks remain.

You can check the property’s connection by contacting Water Corporation on 13 13 85 .

Chattels and fixtures 

The seller must remove chattels unless specified in the contract. Both buyer and seller should ensure the contract clearly lists items to stay or be removed.

Pool and spa enclosures 

Sellers must ensure fences comply with Building Regulations before sale.

Safety switches

Sellers must ensure two safety switches or RCDs are fitted before sale as per the Electricity Regulations Act 1947.

Smoke detectors

Sellers must ensure mains-powered smoke alarms are fitted to properties built before 1997. If wiring is impractical, smoke alarms with a 10-year battery life are acceptable.

Contract terms 

Remember you can protect your interests by:

• getting legal advice about the contract terms;
• crossing out any terms that do not suit you;
• adding any suitable terms (legal advice is recommended); and
• having all parties to the contract initial each change, when agreement is reached.

Unfair contract terms 

The Australian Consumer Law contains protections in relation to unfair contract terms. Unfair terms in standard form consumer contracts may be declared void by a court. You can contact us if you think a contract term is unfair on 1300 30 40 54 or by email.

More information

If you are selling your home without an agent, a copy of the General Conditions can be obtained from REIWA or the Law Society of Western Australia.

As with any of the other terms, you can change the general conditions, but it is recommended you seek legal advice.

Sale by offer and acceptance guide covers buying and selling property by offer and acceptance.