The Hidden Valley contract, explained

Contracts can look intimidating, especially when you’re buying in a state you don’t live in. The good news is that the Hidden Valley contract is a standard WA form that settlement agents and solicitors see every day. This guide walks through the main parts in plain English.

It isn’t legal advice. Before you sign, have your own settlement agent or solicitor review the actual document.

The form itself

Hidden Valley uses the REIWA “Contract for Sale of Land or Strata Title by Offer and Acceptance”. REIWA is the Real Estate Institute of Western Australia, and this is the standard form used for most residential land sales in the state.

It works together with the 2022 General Conditions, a separate standard document that sets out the general rules of the sale: what happens if settlement is delayed, how notices are given, how the property is handed over and so on.

How offer and acceptance works

The name says it all. You, the buyer, fill in and sign the contract. That’s your offer. The seller then signs to accept it. Once both have signed and the acceptance is communicated to you, it becomes a binding contract.

This is a little different from some other states, where contracts are exchanged. In WA, the signed offer and acceptance is the contract.

The schedule

The first page is the schedule, which contains the details specific to your purchase.

• The buyer: your full name, including middle names, and your address. If more than one person is buying, each is listed.
• The property: your lot number on Quindalup Way, Dongara.
• The purchase price: $420,000.
• The deposit: $10,000, paid within 7 days of acceptance and held in the settlement agent’s trust account.
• The settlement date: 14 days from the titles being available for dealing.

How you’ll own it

The contract asks you to tick how the property will be held:

• Sole owner: one person owns it.
• Joint tenants: two or more people own the whole property together, and if one dies their interest passes to the survivor.
• Tenants in common: each owner holds a defined share, which passes under their will.

This is a significant decision with legal and tax implications. Our guide to joint tenants or tenants in common explains the difference.

Finance

The contract includes a finance clause section.

If you’re borrowing, you can make the contract subject to finance. You’ll fill in your lender or mortgage broker, the amount of the loan and a latest time for approval. If your finance isn’t approved by then, the clause sets out what happens, which generally gives you a way out.

If you’re paying cash, or don’t want the finance clause to apply, you sign the section that says the finance clause is not applicable.

Special conditions

The Hidden Valley contract lists special conditions that form part of the contract. They are:

1. A Bush Fire Prone Area Annexure, because the land is in a designated bushfire prone area.
2. A GST Withholding Annexure, which deals with GST withholding at settlement.
3. A Sunset Clause Annexure, which sets a deadline for titles to be issued.

Each is a separate page attached to the contract. Read what is a sunset clause and GST withholding explained for an overview.

Settlement agents

The contract names the seller’s representative for settlement. You can appoint your own settlement agent or solicitor to act for you. In WA, settlements are commonly handled by licensed settlement agents, who prepare the documents, arrange the transfer and tell you exactly what’s due.

Receipt of documents

At the end of the contract there’s a section where you acknowledge receiving the documents that form part of the sale. Make sure you’ve actually received and read everything listed.

Tips before you sign

• Check every name and address is spelled exactly right.
• Decide on your ownership structure before you sign.
• Speak to your lender before you fill in the finance clause.
• Read every annexure.
• Ask questions. There’s no such thing as a silly question when it comes to a contract.

The deposit in detail

The deposit is $10,000, paid within 7 days of the seller accepting your offer. It’s held in the settlement agent’s trust account until settlement, when it’s applied to the purchase price.

A trust account is a special account that settlement agents must keep for client money. Money in trust is held for the parties to the transaction, not for the agent’s own use. That’s an important protection when there’s a gap between signing and settlement.

Settlement explained

Settlement is the moment ownership of the land passes from the seller to you. On settlement day:

• Your settlement agent confirms everything is in order.
• The balance of the purchase price is paid, along with transfer duty and other costs.
• The transfer of the land is lodged for registration.
• You become the owner.

At Hidden Valley, settlement is 14 days after titles are available, which is expected in mid-2027. Until titles exist, the lot can’t be transferred, which is why settlement waits for them.

What happens if someone doesn’t do what they’ve agreed?

The 2022 General Conditions set out what happens if either party defaults, for example if a buyer doesn’t pay at settlement or a seller doesn’t transfer the land. These clauses are standard, and they protect both parties. Your settlement agent can explain the default provisions in plain language.

Notices

The contract includes email addresses where notices can be served. Make sure the email address you provide is one you check regularly, because important notices about the contract may arrive there.

Electronic settlement

Most property settlements in Australia now happen electronically. Your settlement agent handles this, and you usually don’t need to attend anything in person.

A checklist before signing

1. Read the whole contract, including every annexure.
2. Check all names and addresses.
3. Decide on sole owner, joint tenants or tenants in common.
4. Confirm the lot number.
5. Complete or decline the finance clause.
6. Have your settlement agent or solicitor review it.
7. Make sure the deposit is ready to pay within 7 days.
8. Keep a copy of everything you sign.

Common questions about WA contracts from interstate buyers

Buyers from other states sometimes expect a different process. In NSW, for example, buyers often talk about exchange of contracts and cooling-off periods. In WA, the offer and acceptance form works differently, and cooling-off rights vary depending on the type of contract and circumstances. Ask your settlement agent how the rules apply to you rather than assuming they’re the same as your home state.

How the contract fits with other documents

The contract doesn’t stand alone. You’ll also see:

• The survey plan, showing your lot’s boundaries and the estate layout
• The 2022 General Conditions, setting out standard terms
• The annexures, covering bushfire, GST withholding and the sunset clause
• Any disclosure documents the seller provides

Read them together. If anything seems inconsistent, ask your settlement agent.

When to involve your lender

If you’re borrowing, show your lender the contract before you sign, or as soon as possible after. They’ll want to see the price, deposit, settlement terms and any special conditions.

Who’s who in the contract

• The buyer: you, and anyone buying with you.
• The seller: the company selling the lots, named in the contract.
• The seller’s agent: Terry McBratney & Associates, who markets the lots.
• The deposit holder: the settlement agent named in the contract, which holds the deposit in trust.
• Representatives: each party’s settlement agent or solicitor.

Knowing who does what makes the process easier to follow.

Common questions

Is the contract a standard form?

Yes. It’s the REIWA offer and acceptance form with the 2022 General Conditions, plus special conditions.

Can I make the contract subject to finance?

Yes, if you’re borrowing. You’ll name your lender, the amount and a latest time.

When does the contract become binding?

When the seller accepts your signed offer and the acceptance is communicated to you.

Can I use my own settlement agent?

Yes. You can appoint your own settlement agent or solicitor.

What are the 2022 General Conditions?

They’re a standard set of terms published for WA property sales. They cover things like settlement procedures, notices, defaults and possession. They apply to the contract unless the contract changes them.

What details do I need to provide?

Terry needs the full name of each buyer including middle names, each buyer’s address, the lot number and, if you’re financing, your lender’s name and the amount you’ll borrow.

Can I sign the contract electronically?

Ask Terry how he’d like to receive the signed contract. Many interstate buyers complete contracts remotely.

What happens after I sign?

Once the seller accepts, you pay the $10,000 deposit within 7 days into the settlement agent’s trust account. Then there’s nothing more to pay until settlement.

Do I need a solicitor or a settlement agent?

You can use either. In WA, licensed settlement agents commonly handle land settlements. Choose someone before you sign, so they can review the contract.

Can the contract be changed?

Any changes would need to be agreed between buyer and seller and documented. Talk to Terry and your settlement agent if there’s something you want to discuss.

What does the bushfire prone area annexure mean?

It notes that the land is in a designated bushfire prone area. For you, that mainly means your home will need to meet the construction standard set by a Bushfire Attack Level assessment. See BAL ratings explained.

Is there a cooling-off period?

Rules differ between states and contract types. Ask your settlement agent how they apply to your contract before you sign.

What if I miss the deposit deadline?

The contract and General Conditions set out the consequences. Make sure your deposit is ready to pay within 7 days of acceptance.

Do I need to attend settlement?

Usually not. Settlements are generally handled electronically by settlement agents.

Where will notices be sent?

To the email address you provide in the contract. Use one you check regularly.

Should my lender see the contract?

Yes. Lenders need to review the contract terms as part of approval.

Who is the seller’s agent?

Terry McBratney & Associates.