Are your parents selling the family home? Or perhaps they’re preparing to offload their getaway pad in the country. Maybe the shoe is on the other foot and you’re wanting to downsize into your adult child’s apartment before it goes to market. Whatever your sentimental connection is telling you, you’re probably wondering what the first step is when buying a house from a family member. We are often asked at Mosaic Settlements if there is a need for a contract when buying a home from a family member. Hopefully this blog post can help guide you.
Do I need a contract when buying a house from a family member?
Ultimately, it’s up to you! Many choose not to bother with Offer & Acceptance documentation when buying property from family, especially given that the transaction is relatively simple. There is often:
- No rates adjustment
- No final inspection, and
- No intention to charge penalty interest if matters are delayed
We’ve found at Mosaic Settlements that sale of property to a related party has an inherent level of trust – even more so between family members. Parties are more likely to proceed with the transaction as previously agreed upon, without the need for a written contract.
What paperwork is not needed when a contract is not used?
The Joint Form of General Conditions does not apply if there is no written contract to specify settlement date. The buyer and seller contact Mosaic Settlements to verbally advise us of the preferred settlement date.
What if I do use a contract when buying property from family?
Although contracts are often not used in sale of property to a related party, writing one up can be of assistance. O&A documentation ensures that all parties are informed on the terms of the transaction, with the contract protecting the interests of those involved.
When buying property from or selling property to a family member, an involved party may choose to have a contract drawn up for many reasons. One particular reason that stands out to us here at Mosaic Settlements is when the ties between related parties are outside of the immediate family. A contract ensures that both the buyer and seller are on the same page.
Contact Mosaic Settlements for help with buying a home from a family member
We are ready, willing and able to assist with the sale of property to a related party. Call on 08 9240 2789 or reach out via our quote form to our team of experts. We have more than twenty years of combined experience when it comes to conveyancing Perth real estate.