All Topics / General Property / Verbal Agreements
Hi,
I was just wondering if when making an offer on a property verbally is legally binding (if the offer is accepted)?
Cheers
A verbal agreement is not worth the paper its written on, its only legaly binding if both parties want it to be
Most contracts can be oral, except for those contracts relating to land such as purchases and leases which must be in writing – though they don't have to be in standard form, the back of an envelop could qualify.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry, there are many statutory requirements for the preparation of a contract for sale of land. These include consumer protection requirements (like the 5 day cooling off/S66W waiver), provision of sewer diagram/full property description/description of inclusions/period for completion of the contract etc – the back of an envelope simply won't do anymore.
hi Scott
Good points, and you are correct.
in NSW under the Conveyancing (Sale of Land) Regulation 2005
19 Circumstances under which purchaser may rescind contract or option
(1) The purchaser under a contract for the sale of land may rescind the contract:
(a) for the vendor's failure to attach to the contract the documents (referred to in clause 4 and Schedule 1) prescribed under section 52A (2) (a) of the Act, or
(b) for breach of the warranty (referred to in clause 8 and Part 1 of Schedule 3) prescribed under section 52A (2) (b) of the Act.
Schedule 1 clause 4 includes
A section 149 certificate (unless the land is not within a local government area).
A diagram for the land from a recognised sewerage authority (if available from the authority in the ordinary course of administration), indicating the location of the authority's sewer in relation to the land.
etc
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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