Making the decision to sell your home is a big one. You've got to consider several factors, whether it is related to the asking price, selling timelines or condition of the property during the sale. Naturally you'll want to protect your interests to ensure that you don't get a raw deal, especially if you're selling in a buyer's market. Work with your conveyancer and consider adding these special conditions to the contract of sale document.
Add A Penalty Interest Clause
Sometimes buyers fail to complete property settlement on the pre-determined date and time based on the contract, which could result in financial loss to sellers. Penalty interest is a special condition outlined to protect the seller from this unanticipated loss. Penalty interest is usually calculated as a percentage of the agreed upon buying price and will be calculated daily starting from the day of the original settlement until the new settlement date. Penalty interest can prove to be costly for buyers, and will provide them with greater incentive to settle on time, which is exactly what you want as a home seller.
Add A Non-Approval Clause
A non-approval clause may be important for seller that have renovated or built on their properties without necessarily seeking council approval. For example, if you have built a deck or a carport adjacent to your house without getting official council approval, you will ideally need to put this into the contract of sale. The buyer will need to acknowledge this non-approval and will accept the house in its current state. With this clause in place, the buyer will not be able to make any claims against you in the future regarding the property you're selling.
Add A Current Property Condition Clause
Some buyers insist on sellers undertaking certain repairs and renovations before the final property settlement. If this is something you don't want want to do or want to protect yourself against, talk to your conveyancer about adding a current property condition clause into the contract of sale document. Under this condition, the buyer will accept the property in its current condition and cannot demand any repairs and renovations at a later stage. This ensures that settlement will go through without the buyer making any new demands regarding the property.
Selling a property can be just as demanding as buying. You'll want to protect your interests as much as possible to minimise any financial risks. Consider adding these special conditions to your contract of sale document.