Additional Conditions in a Contract of Sale

Hi all,

I'm looking at a property in the Lake Macquarie area and just received a contract.

In the contract, it alerts the purchaser to the following under the title search:

1. Rights to Mine.
2. Easement to drain water affecting the part (s) so burdened in the title diagram
   
3. Restrictions to the use of land

Then Additional Conditions follows:
(This property was sold in 1993 and 2005. The pictures on RE appear to have some internal renovations done. The owners have lived there for last 10 years. Surely, there's an occupancy certificate and why the need for a building certificate? I thought I will ask you guys if you have come across such things in contracts in the past.)

I have sent an email to agent to seek clarifications.

It seems to be a lot of time spent to be dealing with this sort of issues but it could present as an opportunity to get a discount.
Larrylarry

ADDITIONAL CONDITIONS

ADDITIONAL CLAUSES IN CONTRACT FOR SALE OF LAND

BETWEEN X and Y (VENDOR)

AND (PURCHASER)

DATED THE DAY OF

30. Application for building certificate within fourteen (14) days.

30.1 In this clause, "work order" means the same as in clause 11.

30.2 PROVIDED the purchaser applies for a building certificate from the local

council within fourteen (14) days of the date of this contract:

30.2.1 the local council refuses to issue such building certificate or fails to

issue or indicate its intention to issue the same within twenty-one (21)

days of the date of the making of this contract; or

30.2.2 the local council issues the building certificate upon conditions which

are not acceptable to the purchaser; or

30.2.3 as a result of such application for a building certificate the local council

issues a notice requiring work to be done to the property and the

vendor is not willing to do the work and provided the vendor does not

give the purchaser notice within seven (7) days of the issue of such

notice that he is so willing to do the work,

then the purchaser may rescind this contract within fourteen (14) days of the

refusal, failure to issue, conditional issue or the issue of a notice as aforesaid

but the purchaser shall have no further or other remedy against the vendor.

30.3 This clause does not affect any other rights of the parties.

31.(a) Clause 15 shall be deleted and the following clause shall be included in and form part

of this contract:

Completion of this contract shall take place on the date being 28 days after the date

of making this contract PROVIDED THAT at any time thereafter either party by not

less than 14 days notice in writing to the other may nominate a date time and place

for completion and time shall thereupon be deemed to be of the essence of this

31.(b) If the purchaser does not complete this Contract by the completion date and, at that

date the vendor is ready, willing and able to complete and the vendor issues a Notice

to Complete, the sum of three hundred and thirty dollars ($330.00)(inclusive of GST)

to cover legal costs and disbursements incurred by the vendor’s solicitors in drafting

and serving a Notice to Complete is to be allowed by the purchaser as an additional

adjustment on completion and it is an essential term of this contract that such

payment be so made.

32. The Purchaser may rescind this contract if the owner of the improvements on the

land is not entitled, as at the date of this contract, to claim compensation from the

Mine Subsidence Board in respect of any damage to the land and/or improvements

arising from mine subsidence, and written communication from the Mine Subsidence

Board to that effect shall be conclusive for the purposes of this clause.

33. The Purchaser purchases the subject property with full knowledge of the state and

condition of repair of the improvements erected thereon and shall be deemed to have

satisfied themselves as to the approved capable use and condition of the property

sold and will not raise any objections, requisitions or claims for compensation in

relation thereto. The purchaser will accept the subject property in the condition or

state of repair in which it is at the date of settlement.

34. The purchaser hereby warrants that he was not introduced to the property by any

real estate agent other than the vendor’s agent, if any, referred to on Page 1 of the

Contract. The purchaser covenants and agrees to be responsible for and to

indemnify the vendor in relation to any commission payable by the vendor as a result

of a breach of the above warranty. The purchaser further agrees to indemnify the

vendor in relation to any costs incurred by the vendor as a result of such breach.

The parties agree that the provisions of this special condition shall not merge on

35. If the purchaser shall not complete this purchase by the completion date, without

default by the vendor, the purchaser shall pay to the vendor on completion, in

addition to the balance of the purchase money, an amount calculated as ten per cent

(10%) per annum interest on the balance of the purchase money, computed at a

daily rate from the day immediately after the completion date to the day on which this

sale shall be completed. It is agreed that this amount is a genuine pre-estimate of

the vendor's loss of interest for the purchase money and liability for rates and

36. In the event that the purchaser herein pays less than 10% of the purchase price as

deposit pursuant to Condition 2 hereof then in such event, and if the purchaser

commits a default hereunder, the whole of the 10% deposit shall become due and

payable notwithstanding that this Contract is not completed.

This clause shall not merge on completion and the vendor shall be entitled to sue for

recovery of so much of the 10% deposit that remains outstanding as at the date due

by the purchaser to the vendor.

37. Notwithstanding any principle of law to the contrary, the Purchaser shall have the

right to make an objection, requisition or claim in respect of:-

(i) any encroachment onto any adjoining land by any building or structure on the

land, other than a dividing fence as defined in the Dividing Fences Act 1991;

(ii) any encroachment onto the land by any building or structure on any adjoining

land, other than a dividing fence as defined in the Dividing Fences Act 1991;

(iii) any non-compliance with the Local Government Act 1993, or any regulation

unless the encroachment or non-compliance is disclosed and clearly described in this

contract and the contract contains an express term precluding the Purchaser from

making such an objection, requisition or claim.

38. (a) The expression “Bond” in this Agreement means a Deposit Guarantee Bond

under that Act, in respect of any building or structure on the land;

(b) The delivery to the Vendor or to the Vendor’s Solicitor of a Bond which binds

issued to the Vendor at the request of the Purchaser by a Guarantor (either

named in this Agreement or otherwise agreed between the Vendor and

Purchaser) and in or to the effect of the form set out below.

the Guarantor to the Vendor shall, subject to (i) and (ii) of this sub-clause, be

deemed for the purposes of this Agreement to be payment of the guaranteed

amount at the time of such delivery on account of the deposit to the person or

persons nominated in this Agreement to receive the deposit, and the following

provisions shall apply:

(i) On completion of this Agreement, or at such other time as may be

provided for the deposit to be accounted for to the Vendor, the

Purchaser shall pay the amount stipulated in the Bond to the Vendor in

cash or by unendorsed bank cheque; or

(ii) If the Vendor serves on the Purchaser a notice in writing to forfeit the

deposit then such service shall operate as a demand upon the

Purchaser for payment forthwith of the deposit (or so much thereof as

had not been paid) and upon failure of the Purchaser to pay the same

within two (2) clear business days of service of such notice the Vendor

shall be entitled to demand payment from the Guarantor in

accordance with the provisions of the Bond and the provisions of this

Agreement in relation to the deposit (other than Clause 1) shall then

apply as though this Agreement had just been made and required

payment of the deposit within two (2) clear business days on demand

on the Guarantor.

39. If the purchaser or vendor or any one or more of them shall:

(i) die;

(ii) become mentally incapacitated; or

(iii) assign his, her or their estate for the benefit of creditors or, being a

prior to completion of this Contract then either party may by notice in writing to the

other party’s Solicitor or Licenced Conveyancer rescind this Contract whereupon the

provisions of this contract as to the rescission shall apply.

40. The purchaser acknowledges by signing this Contract that the carport may not be

council approved and the purchasers shall not make any requisition, claim (including a claim

for compensation), objection, rescind, delay completion or terminate the Contract as a result

of the said carport.