'as is' condition clause w.r.t. approvals

Discussion in 'Legal Issues' started by mojorising, 25th Jan, 2019.

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  1. mojorising

    mojorising Well-Known Member

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    Gold Coast, QLD
    I am looking at buying a property in QLD.

    The seller has added an annexure to the contract regarding approvals:-

    The buyer acknowledges that he will take the property in a 'as is' condition and that he will not raise any requisition or objection to any matter raised by any authority in connection therewith and in particular connection with any permission consents and approvals required by the local authority and the buyer hereby waives any rights that the buyer may have pursuant to clause 7 of the Standard Conditions of Sale

    There are 3 structures

    1. A large 4 bedroom house built in 1997
    2. A large concrete structure which is not completed internally but looks like it was built at a similar time to the house.
    3. A large open steel shed

    The land is 4 Ha

    I suspect that this clause is in relation to the uncompleted concrete structure in which case I am not too worried as I do not have any plans to do anything with it.

    But if there is any doubt about the house having approval then that would be a showstopper.

    I would like to remove this clause or else trim it back so that the house lacking approval would still be an escape clause.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You can negotiate its removal, but if there is an unapproved structure they are unlikely to agree probably. You can negotiate a modification of the clause though
     
  3. mojorising

    mojorising Well-Known Member

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    Thanks Terry.

    I am really trying to think of a way of rewording it so that it excludes the main residence.

    How does it normally work contractually when you are under contract as a buyer and it is unconditional w.r.t. finance/inspections etc. but a search shows that a structure is unapproved?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    The buyer may be able to pull out or demand approval or compensation
     
  5. Marg4000

    Marg4000 Well-Known Member

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    Get your solicitor to word a clause that excludes the “other” structures but not the house from council approval.
    Marg
     
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  6. Paul@PAS

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

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    A contract with a conditional - subject to confirming council approval of the dwelling structure. And get cracking asap on the searches.

    Or you dont sign and then they need to determine if you even want to sign after you do the searches. I guess it depends if they want it sold or have something of concern that you may later regret or use to negotiate.