CONTRACT OF SALE SPECIAL CONDITIONS:
The below special conditions have been put together by our conveyancing solicitors and can be inserted into a standard contract of sale.
These conditions are samples only and may not be appropriate in all circumstances and are not designed to replace seeking legal advice when required. Our solicitors are more than happy to assist with any pre-contractual advice you may require as an agent putting together a contract of sale. We do not charge for this service to real estate agents.
Pet Approval by Body Corporate:
This contract is subject to and conditional upon the seller providing written approval from the Body Corporate within [insert no of days] from the contract date that the buyer may keep a [insert nature of pet] in the property.
Should approval not be obtained by [insert no of days] from the contract date, the buyer may elect to waive the benefit of this clause, or terminate the contract and all deposit monies will be refunded in full to the buyer, with neither party having any claim against the other.
Contract Subject to Sale of Buyer's Prior Property (Where Contract Already Entered Into for the Prior Property):
This contract is conditional upon the successful settlement of the buyer's existing property situated at [insert property address] on or before [insert number of days] from the contract date.
Should settlement of the property at [insert property address] not be effected for any reason by the date specified above, then either party may terminate this contract and all deposit monies will be refunded in full to the buyer, with neither party having any claim against the other.
Subject to Buyer's Due Diligence:
This contract is conditional upon the buyer carrying out such due diligence inquiries with respect to this property as the buyer shall require within 21 days from the date hereof. If the buyer is not satisified with the results of those inquiries, in their sole discretion, then they may terminate this contract by notice in writing to the seller, or seller's solicitor and in that event all deposit monies shall be refunded in full to the buyer with neither party having any claim against the other.
The Buyer acknowledges that, despite the existence of this contract, the Seller will continue to offer this property for sale.
In the event that the Seller signs a contract on terms more acceptable to the Seller, in their absolute discretion, prior to this contract going unconditional, then the Seller shall give written notice (‘Notice of Better Offer’) of this to the Buyer.
The Buyer must agree to go unconditional on this contract within two days of receiving the Notice of Better Offer, or this contract shall be at an end and all deposit monies shall be refunded in full to the Buyer and no party shall have any claim against the other.
Buyer's Right to Access Property Prior to Settlement to Carry Out Renovations:
The Seller agrees to allow reasonable access for the Buyer, and appropriate tradespeople, to the property for the purpose of obtaining quotes to conduct renovations to the property.
Once this contract becomes unconditional the Seller agrees to allow access to the property so the renovations can be commenced. The renovations must be conducted in a satisfactory and workmanlike manner by appropriately qualified and/or licensed tradespeople.
The Buyer hereby agrees to pay all costs for the renovations being conducted. In the event that settlement does not occur, through no fault of the Seller, the Buyer agrees to pay all the costs to ensure the renovations are completed in a satisfactory and workmanlike manner and agrees to indemnify the Seller against any costs, damages or other liability caused by the renovations.
The Buyer hereby agrees that they must take out ‘appropriate’ insurance to the Seller’s satisfaction.
Seller Acquiring Alternative Property:
This contract is conditional upon the Seller entering into a contract of sale to purchase an alternative property of their choice and upon that agreement becoming unconditional within [insert number of days] days from the Contract Date. This condition is inserted for the sole benefit of the Seller and can be waived at their sole discretion.
This contract is conditional upon the buyer being satisfied with the results of a due diligence investigation of the property within [insert number of days] days from the Contract Date. If the buyer is not satisfied with any aspect of their due diligence investigation the may may, in their sole discretion, terminate the Contract by notice in writing to the Seller, and in such case any deposit monies paid must immediately be refunded in full to the Buyer. This clause is inserted for the sole benefit of the Buyer and the Buyer is under no obligation whatsoever to supply any reasons for their termination of the Contract.
The Seller agrees to:
Allow the Buyer, together with consultants employed by the Buyer, full access to the property for the purposes of the due diligence investigation; and
Provide to the Buyer any information held relating tot he property relevant to the due diligence investigation.
Approval from the Foreign Investment Review Board (“FIRB”):
This contract is conditional upon the Foreign Investment Review Board (“FIRB”) granting approval to the acquisition of this property;
The Buyer, upon signing this contract, undertakes to apply to FIRB for approval as soon as possible, complying with all directions and requests for information from FIRB and using their best endeavours to obtain such approval.
The Buyer will upon obtaining FIRB approval provide written notice to the Seller’s solicitor of this approval.
If approval is not granted within [insert number of days] then this Contract shall be at an end and all deposit monies shall be refunded in full the the Buyer and no part shall have any claim against the other.
Contract Subject to Sale of Buyer’s Prior Property (Where Contract Not Yet In Existence):
This Contract is subject to the buyer obtaining a valid and enforceable contract for the sale of their property located at [insert property address], hereafter referred to as the ‘prior property’, within [insert number of days] from the Contract Date.
This Contract is subject to the settlement of the buyer’s prior property within [insert number of days] from the Contract Date.
The Settlement Date will be [contemporaneous with, or within X number of days] of the settlement of the buyer’s prior property.
The buyer will immediately advise the seller, or the seller’s solicitor when a sale contract has been obtained and further advise the date thereof, the settlement date and date by which the contract will become unconditional with respect to finance and building and pest inspections and any other special conditions.
If the buyer does not obtain a sale contract as per Special Condition 1, or by a mutually agreed date, then this contract shall be at an end and all deposit monies returned to the buyer, with no party having any further claim against the other.
Electronic Transmission of Contract Clause:
This Contract may be entered into by and becomes binding on the parties named in the Contract upon one party signing the Contract that has been signed by the other party (or photocopy, or facsimile. or email copy of the same) and transmitting a facsimile or email copy thereof to the other party or their Solicitor.
Inspection of Property:
This contract is subject to, and conditional upon, the buyer conducting a visual inspection of the property within [insert number of days] from the Contract Date. and being satisfied with the property in their absolute discretion.
If the buyer is not satisfied, in their absolute discretion, with the property after inspecting it, they may terminate the contract by providing written notice to the seller within [insert number of days] from the Contract Date and all deposit monies paid under the contract will be refunded to the buyer in full.
If written notice of termination is not provided to the seller within [insert number of days] from the Contract Date, then this clause is deemed satisfied.
This clause is inserted for the sole benefit of the buyer and may be waived by them at any time.
Payment of Agent’s Commission:
The parties hereto acknowledge and agree that the commission and GST payable to the Seller’s Agent by the Seller, is to be released to the Agent, from the deposit paid by the Buyer and held by the stakeholder, in payment of the Agent’s invoice prior to the settlement of the property. The deposit is to be paid to the Agent by [insert date, or number of days from contract date].
Property subject to Local Law 17 (Maintenance of Works in Waterway Areas):
On the Gold Coast, when property is sold that has access to a waterway, whether that be a river, canal, or artificial lake, the following clause must be inserted into the Contract of Sale advising the Buyer of their legal obligations when it comes to maintenance of the property.
Maintenance of Works in a Waterway Area:
Section 15 of Local Law 17 applies to the Contract;
That a revetment wall, training wall, jetty or pontoon is completely or partly situated on, or is connected to, the relevant lot;
Under Local Law 17, a person who is a responsible person for the revetment wall, training wall, jetty or pontoon is, at that person's cost, required to maintain the work;
Whether or not there is an outstanding notice issued by the Council under Local Law 17 in relation to the work and, if so, the contents of that notice
Early Possession of Property:
Upon execution of the Contract, the Buyer and Seller agree to enter into a licence agreement (“the Agreement”) granting early possession of the property to the Buyer from the date the Agreement is executed by both parties, or a mutually agreed upon subsequent date (“Execution Date”).
Under the Agreement, the Buyer agrees to pay to the Seller an amount of [insert amount] per week in licence fees, on the basis that they are provided with early possession of the property, under standard condition 8.6 of the Contract and the terms of the Agreement, from the Execution Date until the Settlement Date.
The Buyer agrees to pay the Seller’s reasonable additional legal fees for the drafting of the Agreement.
The Buyer and Seller are to pay their own legal fees in regards to the execution of the Agreement.
If for any reason, this Contract is terminated by either party in accordance with the terms of the Contract, the Agreement shall be at an end and the Seller agrees to vacate the property within [insert timeframe] of the termination of the Contract and remove all of their possessions from the property at their own cost.
In receiving early possession of the property the Buyer agrees they are accepting the property in ‘as is’ condition from the Execution Date and they agree to indemnify the Seller for; any loss or damage to any person or property, that occurs from the Execution Date to the Settlement Date, or the date they vacate the property should the Contract be terminated for any reason.
Non-Approved Structure on the Property:
The Seller hereby provides notice to the Buyer that the [nature of structure] (“the Structure”) on the property has not been approved by the City of Gold Coast Council (“Council”) and the Buyer agrees to accept the property on the basis that the Structure has not been approved by Council and has no further recourse under the Contract in relation to this.
The Seller confirms they have not received any notices from Council, or any other relevant government department, in relation to the Structure at the Contract Date.
The Buyer agrees that they will be responsible for any costs post-settlement in relation to securing approval of the Structure, removal of the Structure, or any associated works and hereby indemnifies the Seller accordingly.
Inspection by Buyer:
This Contract is subject to the Buyer conducting a physical inspection of the property on or before 14 days from the Contract Date, and in their sole discretion, being satisfied with the property at this inspection.
Should the Buyer not be satisfied with the property, in their sole discretion, at this inspection, they may elect to terminate this Contract in which case the deposit is to be refunded in full to the Buyer, with neither party having any further claim against the other.
This Contract is subject to the Buyer obtaining written approval from the Body Corporate on or before 30 days from the Contract Date, that the Buyer may conduct a home business consisting of yoga classes from the property.
The Seller agrees to assist in communicating with the Body Corporate to facilitate this approval.
Should approval note be received, the Buyer may elect to terminate this Contract in which case the deposit is to be refunded in full to the Buyer, with neither party having any further claim against the other.
Early Release of Deposit:
This Contract is conditional upon the Buyer agreeing to the early release of the deposit held by the Stakeholder to the Seller from the unconditional date.
The Buyer authorises the release of the deposit to the Seller from this date.
Should the Buyer become entitled to the refund of the deposit for any breach of the Contract by the Seller, the Seller agrees to make full payment of this back to the Stakeholder’s Trust Account within 24 hours of being requested to do so.