A guide on how to complete a Contract of Sale
The next steps if your offer is accepted
• Please do not date your offer, this is done once the Contract of Sale has been agreed on by all parties. This then becomes the ‘date’ of the contract. • Please make sure you initial the bottom of each page as the purchaser, sign the required pages (5, 13 and the vendor statement {if applicable}) whilst in the presence of a witness and have your witness initial and sign all the same pages.
1. Provide us with your nominated solicitor/conveyancer ASAP if not already mentioned on the contract. 2. Pay your deposit within the required timeframe into our trust account:
Purchaser
Name/s: Complete your full legal name as it appears on your drivers licence/passport.
Solicitor/Conveyancer: Complete with your solicitor or conveyancers’ details if you have selected one, if not we can recommend a solicitor or conveyancer. If you don’t have one, don’t worry as this is only required if your offer is accepted.
Deposit
ANZ Bank Account Name: BSB: Account Number: Reference:
Peterswald for Property Trust Account 017 010 496 322 416 Property address you are purchasing or mobile number
3. Should you have any questions or require recommendations regarding preferred conveyancers, building inspectors or financiers please contact your representative or the administration team from Peterswald for property. 4. Meet your conditions within the time frame allowed (eg finance, building inspection etc). Advise your solicitor/ conveyancer and your representative from Peterswald for property as these conditions are satisfied or if you are having difficulty meeting the condition/s within the required time frame.
In Tasmania a deposit of 10% of the sale price is standard, however with increasing property prices it can at times be difficult to pay this amount. If 10% is not possible we would recommend getting as close to this as possible. Keep in mind the stronger the deposit, the stronger your offer.
Rates of duty
The deposit is payable on acceptance of your offer or as soon as possible after acceptance. If you select ‘other date’ it would be suitable to insert ‘within 3 business days of the contract date’ or similar. Preferred method of payment is by electronic funds transfer, however we also accept cheque and cash.
Duty is charged on a sliding scale based on the greater of either the unencumbered value or the purchase price paid.
Completion date
Completion date means when you would like to move into the property. Most common is 30 days after confirmation of all special clauses, however this duration can be negotiated. For further assistance please contact your representative from Peterswald for Property.
The following rates and thresholds will apply to transfers of dutiable property on or after 21 October 2013, unless other provision is made by Chapter 2 of the Duties Act 2001.
Special clauses
Finance Clause: If the Finance Clause is required, complete the ‘Finance Clause’ with the amount you need to borrow in order to complete the purchase, the financier you are using and the required finance period to obtain written approval. If you have pre-approval, 7-14 days from the contract date should be satisfactory. Alternatively, if you are yet to speak with your financier it is recommended to opt for 14-21 days to be safe, again keeping in mind that the less time required to obtain finance, the stronger your offer.
In Tasmania, stamp duty is charged by the State Government (under the Duties Act 2001) when purchasing property. Unencumbered value is determined by multiplying the valuation last determined by the Valuer-General, by the appropriate adjustment factor for the relevant municipality. Adjustment factors and valuations can be obtained from the Land Information System Tasmania (LIST).
Value of the property (including chattels)
Duty payable
More than $200,000 but not more than $375,000
$5,935 plus $4.00 for every $100, or part, by which the dutiable value exceeds $200,000
More than $375,000 but not more than $725,000
$12,935 plus $4.25 for every $100, or part, by which the dutiable value exceeds $375,000
More than $725,000
$27,810 plus $4.50 for every $100, or part, by which the dutiable value exceeds $725,000
Subject to Sale Clause: Subject to Contract: If required, complete the ‘Subject to Sale Clause’ to include your property address, the selling time frame (normally 60 days) and the maximum asking price that you are or will be marketing the property for. Subject to Completion (you have a contract on your property that is unconditional): If required, complete the Subject to Completion component with ‘Deadline for Settlement of Sale’ with appropriate dates – should you require further information please contact your Peterswald for Property representative.
Inspection Clause If required, complete the ‘Inspection Clause’ to include the amount of days for the building inspection to occur, generally 7 days from the contract date is a sufficient amount of time. The ‘Defect Limit’ is usually between 3-5% of the sale price - the higher the defect limit, the stronger your offer.
Sourced from: https://www.sro.tas.gov.au/property-transfer-duties/rates-of-duty