7.1.1 Clause NSW

Discussion in 'The Buying & Selling Process' started by KLK, 29th Mar, 2021.

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  1. KLK

    KLK New Member

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    Does anyone know what the benefit to the seller is for removing or reducing the amount on clause 7.1.1 in the NSW Contract for Sale?
     
  2. Thomacino

    Thomacino Well-Known Member

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    Not a lawyer, but I assume you can request the contract be amended prior to execution. The matter is whether the vendor will actually amend a contract to suit the purchaser.

    Because this is a legal matter, there would be triggers to this clause.. here is an extract for anyone with actual insight..

    FYI
    7 Claims by purchaser
    Normally, the purchaser can make a claim (including a claim under clause 6) before completion only by serving it with a statement of the amount claimed, and if the purchaser makes one or more claims before completion –
    7.1 the vendor can rescind if in the case of claims that are not claims for delay –
    7.1.1 the total amount claimed exceeds 5% of the price;
    7.1.2 the vendor serves notice of intention to rescind; and
    7.1.3 the purchaser does not serve notice waiving the claims within 14 days after that service; and.....
     
  3. Mark F

    Mark F Well-Known Member

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    None. Why would a seller give up part of their protection against a purchaser seeking possibly unreasonable reductions in the agreed price.
     
  4. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Ask your solicitor before signing anything.