NSW Section 7 Claims by the Purchaser 5%

Discussion in 'The Buying & Selling Process' started by mojorising, 28th Sep, 2018.

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  1. mojorising

    mojorising Well-Known Member

    Joined:
    1st Mar, 2017
    Posts:
    79
    Location:
    Gold Coast, QLD
    section 7 of the NSW contract says

    7 Claims by the Purchaser
    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 exceeds 5% of the price    ​

    When I bought my place the vendor changed 7.1.1 to 1%

    Now I am selling and I am also intending to make the same change.

    I am not sure of the meaning of the clause though.

    I sounds like the buyer can somehow claim the right to have the price reduced by up to 5% and the vendor cannot rescind.

    What circumstances would allow the purchaser to make such a claim for a price reduction of 5% ?
     
    mojorising, 28th Sep, 2018
    #1