He Thought He Didn’t Need a Lawyer...

Meet Dave.

Dave had finally found his dream home. Great location, decent price, sunny living room and, according to Dave, “loads of potential.”

The real estate agent handed him the sale and purchase agreement. “You should get your lawyer to look over this before you sign,” she said.

Dave smiled confidently. “Nah, it’s all pretty standard, isn’t it?” And with that, Dave signed.

Fast forward a few days and Dave called his lawyer. “I’ve bought a house!”

“That’s great,” said the lawyer. “Send me the agreement.”

Dave did.

There was a long pause.

“Dave... have you actually read this?”

“Not exactly. But it’s a house. How complicated can it be?”

As it turned out, quite complicated.

Problem #1: The settlement date

Dave had assumed settlement would be whenever he was ready to move in. Unfortunately, the contract had a specific settlement date. And it was considerably sooner than Dave had expected. His bank wasn't quite ready. His moving company wasn't booked. And his current rental agreement had a few more weeks to run.

Suddenly Dave was juggling two sets of keys and wondering whether he could make afford the rent and the mortgage.

Problem #2: The conditions

Dave had signed an unconditional agreement. He had intended to get a building inspection, but thought he'd "sort that out afterwards." The building inspector found a few things that Dave would have preferred to know about before signing. Nothing quite says "dream home" like discovering a roof leak after you've legally committed to buying it.

Problem #3: The title

The property title contained an easement. Dave had no idea what an easement was. His lawyer explained that part of the property was subject to rights allowing someone else to use the land for a particular purpose.

“Is that bad?”

“Not necessarily.”

“Is it something I would have liked to know about before signing?”

“Yes.”

“Right.”

Problem #4: The chattels

Dave thought the outdoor spa was included. The vendor thought the outdoor spa was very much not included. Unfortunately, Dave's assumption wasn't written into the agreement. There was now a spirited discussion about whether a spa could be considered a "fixture", followed by Dave Googling the price of second-hand spas.

Problem #5: The LIM and council information

Dave had seen the beautiful renovated kitchen and assumed everything was above board.

His lawyer suggested checking the council information. There were alterations to the property that needed further investigation. Dave suddenly wished he had spent a little less time imagining where the sofa would go and a little more time checking what had actually been consented.

The moral of Dave's story?

Dave's biggest mistake wasn't buying the house. It was signing the contract before getting legal advice.

His lawyer could have helped him understand the agreement, identify potential issues and make sure appropriate conditions were included before he became legally committed.

Fortunately, Dave's lawyer was able to help him work through the issues that arose.

But Dave learned an important lesson.

A lawyer is much more useful before you sign than after you have signed.

Buying a house is exciting. It is also one of the biggest financial commitments most people will ever make.

So before you fall in love with the house, the kitchen, the view or the spa...

Get your lawyer to check the contract first.

Your future self may thank you.

This is a humorous fictional story written by Sirpa Gunn to illustrate the importance of seeking independent legal advice before signing a property sale and purchase agreement. While the situations are fictional, the message is serious: always talk to your lawyer and get advice before you sign an agreement for Sale and Purchase.