Practical drafting considerations for sale of land contracts

Contracts of sale tend to be prepared by, or on behalf of, the vendor. As a result, they are usually more vendor friendly. Purchasers prepare contracts of sale less commonly. In either case, understanding the client and property, through taking proper instructions and making use of appropriate precedents and standard form contracts, all help to properly complete the task of preparing the contract of sale.

Authored by the LexisNexis Legal Writer team. Updated by Simon LaBlack, Director, LaBlack Lawyers (Qld) and Duncan Webber, Partner, Moray & Agnew (ACT).

Contracts of sale tend to be prepared by, or on behalf of, the vendor. As a result, they are usually more vendor friendly. Purchasers prepare contracts of sale less commonly. In either case, understanding the client and property, through taking proper instructions and making use of appropriate precedents and standard form contracts, all help to properly complete the task of preparing the contract of sale.

Taking instructions, standard form contracts and special conditions

Seeking informed instructions is key, as understanding the property and the vendor or purchaser (as applicable) will identify material aspects that can then be addressed in the contracts of sale or other documentation.

Standard form contracts form the backbone of most contracts of sale. Standard forms are available in most jurisdictions and tend to be adopted due to their widespread acceptance throughout the industry, the parties’ familiarities with them, and the reduced risk of any terms being incorrect or missing (compared to more bespoke contracts). Larger transactions are more likely to have bespoke terms.

Even with the common acceptance of standard form contracts, they are often supplemented or adapted through special conditions or additional clauses. This is common where the standard terms do not address all relevant matters (eg where they have not been updated to reflect a change in laws or conveyancing practice).