Buying property in Perth involves navigating a complex legal landscape that is unique to Western Australia. The process includes understanding the REIWA Contract of Sale, the Joint Form of General Conditions (JFGC), and various local laws and regulations that can significantly impact your purchase. Though they don’t provide legal advice, a local buyer’s agent is invaluable in guiding you through these intricacies, ensuring that your interests are protected every step of the way.
Understanding the REIWA Contract of Sale and Special Conditions
REIWA Contract and JFGC:
In Perth, buyer’s agents are trained to draft offers using the REIWA Contract of Sale, a standard contract widely used in Western Australia. This contract is paired with the Joint Form of General Conditions (JFGC), which outlines the standard terms and conditions applicable to property sales in WA. These documents are detailed and complex, requiring a thorough understanding to ensure that the buyer’s interests are adequately protected.
Local buyer’s agents are not only trained to understand these documents but should also know how to incorporate specific conditions that cater to the buyer’s needs. For example, they are well-versed in managing standard REIWA Annexures, such as the Structural Building Inspection Annexure. This Annexure is particularly intricate and must be carefully explained and monitored throughout the contract process to ensure the buyer understands the obligations and protections it provides.
Risks with Interstate Agents:
Interstate buyer’s agents, especially those from regions where contracts are typically prepared by solicitors, may not be familiar with Perth’s unique contractual requirements. The licensee or responsible person likely also has not served the mandatory two years under an experienced WA licensee as required in WA. These buyer’s agents often defer to selling agents to draft contracts, which can lead to a contract that does not protect the buyer’s interests as well as it should. Moreover, these interstate operators might not thoroughly explain the conditions of the contract to the buyer, leaving them unaware of potential risks or obligations.
Managing Contract Risks
In addition to handling the offer and contract, local buyer’s agents should be well-versed in the specific contract due diligence required during the purchase phase. This involves ensuring that all conditions are correctly drafted, understood, and managed to protect the buyer’s interests throughout the transaction.
- Special Conditions and Annexures: Local agents ensure that special conditions (like those found in REIWA Annexures) are properly included and managed, reducing the risk of misunderstandings or unmet obligations post-settlement.
- Contractual Obligations: They should also make sure that buyers are fully aware of their contractual obligations, such as obtaining finance approval on time, helping to prevent any issues from arising during the process to settlement.
Thorough Pre-Settlement Inspections and Negotiations
Pre-Settlement Inspections:
Local buyer’s agents understand that one pre-settlement inspection is allowed before settlement to ensure the seller has complied with their obligations under the contract. This inspection is critical for confirming that the property is in the same condition as when inspected and that any required repairs have been completed.
Importantly, this inspection should not be conducted by the seller’s agent, who represents the seller’s interests. A local buyer’s agent will handle this inspection, focusing on the buyer’s best interests and aiming to address any issues before the settlement is finalised.
Inspections and Condition Negotiations:
Beyond pre-settlement checks, local buyer’s agents should be adept at negotiating repairs and managing contract conditions identified during building or pest inspections. They ensure that everything agreed upon during the sale process is completed, safeguarding the buyer’s interests before finalising settlement.
Local Property Management Referrals
Property Management and Local Referrals:
After the purchase, effective property management is essential, especially for investors. A local buyer’s agent can provide referrals to reliable, reputable property managers who have a deep understanding of the Perth market. These referrals are crucial for ensuring that the property is well-maintained and that rental yields are maximised.
Interstate agents, who may not have strong local connections, might not be able to provide the same level of support post-purchase. Engaging a local property manager ensures that you have someone on the ground who can address issues quickly and effectively, protecting your investment in the long term.
The Bottom Line
Navigating Perth’s legal landscape requires a deep understanding of local laws, contracts, and regulations. A Perth-based buyer’s agent brings their experience and training to the table, ensuring that your purchase is secure and that your interests are protected throughout the process. When buying property in Perth, choosing a local expert is not just a convenience—it’s a necessity for a successful and stress-free transaction.
Getting Started
If you’d like to learn more about premium home buying or property investment in Perth or clarify your buying strategy and goals, feel free to call us on (08) 9381-7450 or fill in this no-obligation Getting Started form to get the ball rolling. If you’d like to learn more about property investment strategies, or you’d like to clarify your own strategy and goals, why not request our 4 Strategies Download. __________________________________________________________________________ 
Established in 2004, Property Wizards works with local, interstate and overseas home and investment buyers seeking to buy property in the greater Perth metropolitan area. Property Wizards takes away the stress of buying property and saves you time and money. Regardless of market conditions, our research, knowledge, and access to silent sales means we find and negotiate properties with potential to outperform the market in capital growth and rental returns. Importantly, we provide home buyers and property investors with the same level of representation that property sellers have benefited from for years.
