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purchasing property "As is"

Discussion in 'Legal Issues' started by melbournian, 8th Aug, 2016.

  1. melbournian

    melbournian Well-Known Member

    Joined:
    2nd Sep, 2015
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    Location:
    melbourne
    Came across a couple of properties which has these special conditions in s32. I had a look at the property though wondering if anyone had any experience purchasing with these conditions ? it would really mean that any person who have to get insurance prior to the auctions. and also secure the property properly.

    PROPERTY SOLD “AS IS”

    5.1 Property sold “as is”

    The Purchaser acknowledges and agrees that it purchases the Property together

    with any improvements on an “as is” and “where is” basis and therefore:

    5.1.1 as a result of the independent exercise of the Purchaser's own skill and

    5.1.2 in its present condition and state of repair with all existing patent and

    5.1.3 in the knowledge that the Property may contain fill; and

    5.1.4 subject to any obligations that the Purchaser is to assume under the

    and that no representation or warranty has been made or given by the Vendor or by

    any person acting on behalf of the Vendor to the Purchaser or to any person acting

    on behalf of the Purchaser as to:

    5.1.5 the marketability, quality or fitness for any purpose of the Property or the

    5.1.6 the freedom of the Property from defects, infestations, contaminations or

    5.1.7 the use to which the Property or improvements can lawfully be put;

    5.1.8 whether development of any description may be carried out on the

    5.1.9 whether the improvements on the Property have been built or placed

    judgment after due inspection and investigation;

    latent defects, infestations, contamination and dilapidation;

    Vendor’s Statement (for example under section 4),

    improvements;

    dilapidation;

    Property; or

    there in accordance with each approval required by law for the building

    or placement of those improvements.


    PROPERTY AT PURCHASER’S RISK


    6.1 Purchaser’s Risk


    6.1.1 The Property, is sold as is, and will be at the Purchaser’s risk from the

    Day of Sale.

    6.1.2 The Vendor is not responsible for any deterioration in the Property from

    the Day of Sale.

    6.1.3 The Purchaser acknowledges that the Vendor will not undertake any

    maintenance of the Property between the Day of Sale and Settlement

    and the Purchaser must not make any requisition, objection, demand or

    claim for compensation, or rescind or terminate this Contract or delay

    Settlement of this Contract in respect of this.

    6.2 No insurance


    The Purchaser acknowledges that the Property has not been insured by the Vendor,

    and the Purchaser is and will from the Day of Sale be solely responsible for any

    damage or loss suffered by or that may occur to the Property for any reason

    whatsoever.

    6.3 Purchaser to insure


    The Purchaser agrees to insure, at his or her cost, the Property immediately upon

    execution of this Contract and to keep the Property insured until at least Settlement.

    6.4 No delay, deduction


    The Purchaser will under no circumstances be entitled to delay settlement or to seek

    any deduction of the Price or to retain any monies as a
     
  2. Joynz

    Joynz Well-Known Member

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    Melbourne
    You could just get a cover note after the auction for the insurance. I always insure after purchase on the basis that the vendor may not have.

    The bits about contamination sound dire, though!
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sydney
    There might just be something wrong with this property - or it may be some standard clauses used that the vendor's solicitor in all contracts.

    Can't see how insurance could assist.
     
  4. JDM

    JDM Well-Known Member

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    19th Jan, 2016
    Posts:
    145
    Location:
    London (ex Brisbane)
    As is, where is provisions are usual for receiver/manager or mortgagee sales but are not that common in normal residential transactions. It's a commercial decision for you to make but ensure you do your searches and due diligence before the contract is unconditional as you will have little recourse if you find an issue after this time if the clauses are accepted.
     
  5. larrylarry

    larrylarry Well-Known Member

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    Location:
    Sydney
    I'm not familiar with Victorian contract but I would think contract these days are written broadly to cover the vendors and to pass on the risks to purchasers. Perhaps a Victorian lawyer can shed some light.
     
  6. melbournian

    melbournian Well-Known Member

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    Location:
    melbourne
    These are standard clauses in all the department of housing s32 contracts.