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Newsagency Contract Process

When you buy a residential property, it is common to convey your offer on a contract, for the vendor to countersign and start. Residential contracts then have a 5 day cooling off period with a small penalty if you change your mind.

Business contracts however have no cooling off period.

As an ethical approach, Newsagencies For Sale adopt the following company policy process.

An offer is conveyed by email or verbally to start, addressing any terms required (eg. subject to finance, new lease or assignment of lease etc) along with the offer + stock.

If you are not offering the asking price, there is usually some negotiation with the vendor, in view to find a mutual agreement.

If/when an agreement is reached, Newsagencies For Sale will then confirm that by email, and provide a contract preparation questionnaire to both parties.

Newsagencies For Sale will then DRAFT a business contract based on the state’s law society standard, reflecting the agreed position and parties details, for both parties to review with their solicitors PRIOR to signing.

The drafted contract will include Special Conditions for a timely Due Diligence, & transfer of the Lotteries Licence, along with other potential & logical newsagency specific special conditions subject to the agreed terms and makeup of that newsagency. These special conditions are there for the buyers protection. As example, you would not want to get to settlement day without your lotteries licence !

Once both parties are satisfied the contract meets their mutual agreement (normally within 7 to 10 days of offer acceptance), we then arrange for contract signing, and collection of the deposit. The deposit is usually 10% of the contract value, and is held in Trust awaiting settlement or release if the contract terminates over a valid condition not being satisfied.

The contract then starts and parties perform to timelines for a number of things including, but not limited to :-

  • Finance approval if applicable (normally 21 days)
  • Due diligence¬† (normally 21 days)
  • Lease application for assignment of the existing lease “as is”, or New lease (only if raised as a condition in the offer)
  • Tatts License Transfer application
  • Supplier applications

Newsagencies For Sale have exclusively created, documented checklists along the way to assist both parties for prioritisation and expectation.