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Additional Conditions in a Contract of Sale

Discussion in 'Development' started by larrylarry, 22nd Sep, 2015.

  1. larrylarry

    larrylarry Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,508
    Location:
    Sydney
    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.