Offer and Acceptance Form

General Conditions

The majority of contracts between buyers and sellers of the property include the Joint Form of General Conditions for the Sale of Land, or by their shortened form, the General Conditions. These conditions are set forth to create a consistent and all-encompassing basis for the contract so that both parties are aware of all expected inclusions and repairs that are to be made prior to the transition of ownership.

The specific verbiage within the General Conditions is owned by both the Law Society of Western Australia and the Real Estate Institute of Western Australia (REIWA) and can be purchased through those two organizations. It’s a good idea to purchase these prior to listing your home on the market in order to be prepared. You can make changes and repairs to the home in order to decrease the amount of work needed after your potential buyers have looked it over.

The list of areas the General Conditions consist of is:

· Possession of the property. This includes non-inhabited property.
· The closing or settlement date and any delays that may be necessary.
· The payment and any subsequent deposit holding.
· Any debts, third party interest, or encumbrances on the property that impacts financial handlings (i.e., mortgage or lease agreement) related to the property, claims on the title, or the rights of adjoining property owners in relation to the property being sold.
· Information of the land or any strata titled lot.
· Which party bears the burden of any costs, such as sewer connection or underground power installation.
· Any disclosure for strata titles related to the property.
· Finally, the errors, default, risk, and interpretation of terms related to the sale of the property.

O & A

The other part that makes up most contracts is the Contract for Sale of Land or Strata Title by Offer and Acceptance form, often shortened to the O & A form. This form is similar to the General Conditions in that it allows a more streamlined and consistent home selling process.

The wording of this form is owned by the Real Estate Institute of Western Australia (REIWA). REIWA is the most prolific company representing real estate agents in Western Australia. More than 90% of Western Australian agents are a part of this organization.

As The Seller

If you’ve decided to sell your home, your first step should be to research for yourself the General Conditions and the O & A in order to be prepared and to understand what you may receive as offers. You should also remember that you don’t have to accept the offer as is.

You can choose to negotiate some of the offer based on your goals with the sale. It could mean that you’re willing to lower the price to have them complete some of the repairs they’re requesting or it could mean that you’re willing to change the settlement date in order to alter the amount they’ll pay for the home.

If you’ve decided to make a change to the O & A, the amendment will need to be initialled and dated, as well as the document is signed and dated, then returned to the potential buyer for their approval of the change. The potential buyer then has the option to accept, reject, or further negotiate terms on the O & A. Both parties must agree on the entire document before it’s closed.

Once you’re satisfied with the offer presented by the potential buyer, or their agent, you can sign the O & A and it becomes a legally binding contract. Both you and the buyer must receive a signed copy of this contract. It’s also important to remember that unless added to the contract, there is no assumed cooling off period in which a buyer can change their mind. If you’ve decided to work with a settlement agent and have them handle the closing in your place, you can include that on the O & A so that all parties are aware.

Your signature must be dated and witnessed, and any agreed-upon conditions outlined in the O & A will need to be completed prior to the completion of the sale.

As The Buyer

If you’re currently looking for a home and you’ve found a property that you’re interested in, you should start by reaching out to the seller or the real estate agent selling the property. If you’re trying to buy a home on your own, you should understand that while agents must follow the regulations and laws set that prevent unfair treatment or abuse of a potential buyer, they are legally bound to work in the best interest of their client only. T

his means that if the real estate agent is working for the seller, they will do what they think is best for the seller and not you as the buyer. This is why many buyers will work with an agent as well, to make certain they have an experienced professional working in their favour as well. If you decide to do this, you will need to sign a contract with a buyer’s agent.

When finding an agent to work with, you should research reputable agents that have experience and come highly recommended. You should also read and understand the contract you’re signing and any fees or costs involved.

Prior to making your offer, you can ask the seller or the seller’s real estate agent questions about the property and services or accommodations related to the property. Western Australia doesn’t have a mandatory disclosure when selling property. You or your agent should request a copy of the Certificate of Title, but you should also verify everything you want to know about the property in order to be certain of its validity.

Be aware that not all restrictions or interests on the property may be on the Certificate of Title. Also note that there is no cooling-off period in Western Australia for which to change your mind, so making certain that all inquiries and details are answered before the sale is important.

If you’ve decided to buy a home and are ready to put in an O & A form, there are certain things that must be included in that form. These things are:

· Your complete name
· The date you’re making your offer
· The details of the Certificate of Title
· The address of the home
· Everything to be included in the sale, such as fixtures, chattels, or appliances
· The amount you’re offering for the property
· Any special conditions you have, such as inspections or repairs
· The amount of any financing you’ll need for the purchase of the property, as well as which financial institution you’re using
· How the deposit will be paid
· And the planned date for the closing (this may change as negotiations are made).

Any agents you or the seller are working with can also be included in the O & A. You should consider obtaining the services of your own settlement agent in order to be certain you’re fairly represented, but you do have the right to do this process on your own. There are resources to aid you in the process as well as to find a suitable agent. Consumer Protection is one of those sources.

As changes are made through the negotiation process, you should make certain that each time the O & A is amended it’s initialled and dated by whichever party is making those changes prior to you signing the document. Once you’re satisfied with the offer, you can present it to the seller or the seller’s agent. Seller’s agents are obligated under law to make the seller aware of all offers made in writing. It’s likely that yours won’t be the only one the seller needs to consider. The seller can then accept any offer they choose. They may also reject all the offers and may choose one they receive at a later time.

The buyer is then responsible for lodging the O & A for transfer duty assessment. This must be done within a certain time frame and the buyer may receive a penalty if they fail to do so. You can reach out to RevenueWA at 9262 1100 in order to find out the time frame you must complete this. If you’re working with an agent, they will help you with this process.