Selling your home in the Australian Capital Territory (ACT) without a real estate agent can be empowering, but it requires careful preparation—especially when drafting the contract. An FSBO (For Sale By Owner) contract is a legally binding document that outlines the terms of the sale, and it must meet all legal requirements in your jurisdiction. Including the right clauses ensures a smooth, transparent, and fair sale for both you and the buyer. If you're looking for practical FSBO contract tips ACT, this guide breaks down the key clauses every seller should consider when preparing an ACT FSBO contract.
1. Identification of Parties and Property Details
Begin with clear identification of the seller(s) and buyer(s), including full legal names and contact details. Next, describe the property with precision. Include the street address, legal title reference, lot and plan number, and any other identifying information listed in the property title.
2. Purchase Price and Payment Terms
This clause should clearly state the agreed-upon purchase price and how it will be paid. Specify the deposit amount (typically 5–10% of the purchase price), the due date for the deposit, and the payment method. Also outline the remaining balance payment and any conditions such as bank finance approvals.
FSBO contract tip ACT: Buyers often seek finance approval from a lender. You should include a finance clause that protects both parties if the finance falls through.
3. Settlement Date and Possession
Define the settlement date—the day the property officially changes hands. This clause should specify the exact date or state that it will be a set number of days after contract signing. Also, clarify when the buyer can take possession. In ACT, settlement usually occurs 30 to 90 days after exchange of contracts.
4. Inclusions and Exclusions
Avoid disputes by listing what is included or excluded from the sale. Typical inclusions are fixtures such as ovens, dishwashers, and blinds. If you're leaving behind freestanding items like washing machines or outdoor furniture, list them here. Likewise, clearly mention exclusions like family heirlooms or removable structures.
5. Building and Pest Inspection Clause
This clause allows the buyer to arrange a building and pest inspection within a set timeframe. If major issues are found, the buyer can negotiate repairs, request a price reduction, or withdraw from the contract. From a seller’s perspective, this clause shows transparency and builds buyer trust.
6. Cooling-Off Period Clause
In ACT, residential property buyers are entitled to a five-business-day cooling-off period after signing the contract. However, buyers can waive this period in writing. This clause should reference the cooling-off period and detail the terms under which it may be waived or shortened.
7. Title and Encumbrances
Your contract should confirm that the property has a clear title and is free of encumbrances, such as mortgages, easements, or caveats—unless otherwise disclosed. If an encumbrance exists, include details and indicate how it will be handled at settlement.
8. Special Conditions
Special conditions address unique situations. These might include:
- Subject to sale of the buyer’s current property
- Agreement to fix specific defects before settlement
- Tenant vacancy clauses (if the property is rented)
When drafting special conditions, clarity is critical to avoid legal complications later.
9. Default and Termination Clauses
This clause outlines the consequences if either party fails to fulfill their contractual obligations. For example, if the buyer defaults, the seller may retain the deposit. Conversely, if the seller defaults, the buyer may be entitled to compensation. Including this clause protects both sides from financial risk.
10. Dispute Resolution
Disagreements can arise, even with the best intentions. Include a dispute resolution clause that details how conflicts will be resolved—typically through negotiation, mediation, or arbitration before litigation. This approach saves time and legal costs.
Final Tip: Get Legal Advice
Although selling your home privately can save money, legal compliance is non-negotiable. The ACT has strict rules governing property contracts, and failure to meet these requirements can void the agreement. That's why For Sale By Home Owner strongly recommends consulting a solicitor to review your contract before signing. Their team also provides helpful FSBO contract tips ACT through guides and legal support services.
Conclusion
An FSBO contract in ACT should protect both the seller and the buyer by including comprehensive, clearly worded clauses. From price and settlement details to building inspection rights and dispute resolution, each clause plays a key role in ensuring a smooth transaction. With support from For Sale By Home Owner, you can confidently draft your FSBO contract and navigate the selling process with ease.
