Making an offer on a home in Western Australia is an exciting milestone, but it also means entering into a legally binding contract. In WA, standard property transactions use the REIWA Contract for Sale of Land by Offer and Acceptance, known as the O and A, alongside the Joint Form of General Conditions.
While the standard contract forms a solid baseline, the specific annexures attached to your offer make all the difference. Misunderstandings around these conditions can cause unnecessary stress, so knowing what each clause actually covers before you sign ensures you buy with complete confidence.
Here is a straightforward breakdown of the key contract conditions and annexures every Perth home buyer needs to understand.
1. Subject to Finance Clause
Unless you are paying 100 percent cash, your offer will almost certainly include a finance condition.
The Timeline: The contract specifies a firm date by which you must present formal, unconditional loan approval from your lender. Conditional pre-approvals do not satisfy this clause.
Your Obligations: Buyers must take all reasonable steps to secure finance. Under current General Conditions, your mortgage broker or lender can provide formal written notification directly to the seller's settlement agent or listing agent once approved.
What Happens if Finance Fails: If your lender formally declines the loan despite genuine efforts, you must provide written evidence of the refusal to terminate the contract and receive your deposit back in full.
2. Major Structural Defects (Annexures and Form 167)
A standard pre-purchase building inspection condition is often misunderstood. It is not an open invitation to renegotiate on everyday wear and tear.
Depending on how the offer is structured, this condition may appear as the standard REIWA Form 167 annexure, or as a specific agency Annexure B or C. Standard building conditions in Western Australia typically limit the seller's repair obligations strictly to Major Structural Defects. These are issues affecting the structural integrity of the foundations, load-bearing walls, or roof framing.
Minor maintenance, cosmetic blemishes, cracked tiles, sticking doors, or aging paint do not give a buyer the right to cancel the contract or demand repairs unless specifically negotiated as separate special conditions.
3. Timber Pest (Termite) Inspection Clause
With Perth's sandy soils, timber pest inspections are standard practice on residential purchases. This condition is commonly included as Annexure B or C alongside the building report.
This clause specifically covers active termite activity and structural damage caused by timber pests.
If active termites or structural damage caused by termites is identified by a licensed inspector, the seller is obligated to eradicate the infestation and repair the structural damage at their expense prior to settlement. If the seller refuses or cannot rectify the structural damage, the buyer generally retains the right to terminate the contract.
4. Working Order Clauses (Annexure A)
Many buyers assume household appliances and fixtures automatically come with a warranty, but standard WA contracts sell property as inspected unless an explicit working order clause is added.
This is routinely handled by attaching Annexure A, which warrants that all plumbing, electrical, gas fixtures, and major appliances (such as the oven, cooktop, hot water unit, air conditioning, and reticulation) will be in good working order at settlement.
5. The Pre-Settlement Final Inspection (Within 5 Days)
As a buyer, you are entitled to conduct a final inspection of the property, which is usually scheduled within 5 days prior to the settlement date.
The purpose of this inspection is straightforward: to confirm that the property is in the same condition it was in when you signed the contract, subject to fair wear and tear, and to test that all items covered under Annexure A working order clauses and any agreed maintenance conditions are fully operational before funds are transferred.
Work With Local Specialists Who Guide You Every Step
Navigating property contracts and annexures requires local diligence and attention to detail. At Team Gourav and Shan, we guide our buyers and sellers through every milestone from the initial offer to key handover.
If you have questions about making an offer or understanding contract terms across the City of Canning, we are always here to help.
Team Gourav and Shan | Harcourts Focus
Local Property Specialists across Bull Creek, Lynwood, and the City of Canning.
Gourav Narang: 0413 618 278
Shan Bathla: 0426 464 003
Office: 2/118 Parry Ave, Bull Creek WA 6149
(Disclaimer: This article provides general educational information about standard Western Australian real estate practices and does not constitute formal legal advice.)