Contract Review Guide for Australian Capital Territory Buyers
The ACT is unusual in that residential land is generally held under Crown lease. The Civil Law (Sale of Residential Property) Act 2003 requires the seller to obtain and provide prescribed documents before offering a property for sale. This guide outlines issues to discuss with an ACT solicitor before signing.
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Documents to check in ACT
These are the documents commonly relevant to a Australian Capital Territory property contract. What is supplied varies by transaction.
Contract for Sale
Standard ACT contract including general and special conditions.
Crown lease
Terms of the lease including permitted use and improvements.
Building and pest inspection report
ACT sellers must commission and provide a building and compliance inspection.
Energy Efficiency Rating (EER) statement
Mandatory disclosure of the property’s star rating.
Unit title disclosure
Where applicable, owners corporation budget, levies, and resolutions.
Title search and Crown lease purposes clause
Permitted use of the property under the Crown lease.
Issues to check in ACT contracts
Common points to raise with a qualified Australian Capital Territory solicitor or conveyancer before you commit.
Crown lease purpose clause restrictions
An ACT Crown lease specifies permitted uses. Ask your solicitor to check whether its purpose clause affects your renovation, subdivision or use plans.
Building inspection issues
Review the required inspection material for stated defects, asbestos findings and compliance issues, and obtain specialist advice where needed.
Energy Efficiency Rating
Check the disclosed Energy Efficiency Rating and consider an independent assessment of likely heating, cooling and upgrade costs.
Unit title disclosure
For a unit title, examine the owners corporation budget, levies, fund information and disclosed disputes in current records.
Cooling-off in ACT
5 business days from the day the buyer becomes contractually bound. 0.25% of purchase price forfeited if exercised. Cooling-off does NOT apply at auction or where the buyer has given the seller a written waiver after independent legal advice.
Relevant legislation
Civil Law (Sale of Residential Property) Act 2003 (ACT), Civil Law (Sale of Residential Property) Regulation 2004 (ACT), Unit Titles (Management) Act 2011 (ACT).
Illustrative issues in ACT contracts
Examples of points a buyer and their adviser may need to examine. They are illustrations, not findings from a particular contract.
- Crown lease purpose limited to single-dwelling residential use, blocking subdivision plans
- Seller’s building inspection report flagging asbestos in the eaves
- EER of 1 star in a top-floor apartment
- Owners corporation special levy resolved at the most recent EGM but not in the budget
- Cooling-off waiver presented at the same time as the contract for signing
ACT contract review FAQ
ACT land is generally held under Crown lease, and the lease specifies permitted uses. Ask an ACT solicitor to explain whether the purpose clause restricts a proposed second dwelling, dual occupancy, commercial use or other plan.
Realestate Lens is pre-launch. Its planned first pass is intended to organise findings stated in supplied inspection material. It cannot inspect the property, verify a report or replace advice from an ACT solicitor and qualified building professionals.
Buyers in the ACT have 5 business days. 0.25% of the purchase price is forfeited if cooling-off is exercised. Auction sales and contracts following a written waiver after independent advice are excluded.
Reviewing a contract in another state?
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Buying guides relevant to ACT
Plain-English guides written for Australian property buyers.
References
- Reality Check: a real estate guide for buyers and sellers in the ACT – Access Canberra
Not legal advice
Realestate Lens is developing a first-pass risk report intended to help you ask better questions of a Australian Capital Territory solicitor or conveyancer. It is not yet publicly available. Always have your contract reviewed by a qualified practitioner before exchange. See how we handle your contract and AI vs solicitor, what each is for.
Prepare to review your ACT contract before you sign
Realestate Lens is in pre-launch. Join early access for product updates; have a qualified practitioner review any contract before you sign.