Common contractual conditions property purchasers should include

A Contract of Sale is typically prepared by the Seller’s representative, and it is no surprise that a substantial number of clauses will favour the Seller. It is important for Buyers to obtain advice before signing the Contract of Sale. The Contract of Sale together with the Section 32 Vendor Statement are the most important documents relied upon in a conveyance.
 
Through our experience, we have protected our buyers with the inclusion of the following special conditions: 

 
Do you fear loan rejection? 

Subject to Loan gives you the option of terminating the contract and recovering your deposit if you cannot get finance approved of your nominated loan amount within your nominated time frame. However, this will typically require formal evidence that the loan is declined.  

Is there more than meets the eye? 

Subject to Building & Pest Inspection gives you the right to terminate the contract and an immediate refund of any amount paid if the report from a registered building practitioner inspection shows major structural defects or major infestation of pests within 14 calendar days from the day of sale. This can protect you from stress and financial loss or help in negotiating a lower purchase price. 

The next best thing to a car test drive – Physical Property Inspection 

Given that the purchaser is deemed to have accepted the property in the condition it is in of the date of signing the contract, it is important to check the property and goods are in a good state of repair and working order before signing the contract. If any issues arise, we can negotiate to include the rectification or compensation for these into the contract as additional special conditions.  

We suggest inserting a special condition which holds the contract subject to the purchaser completing an in-person inspection after the release of the COVID-19 Lockdown and to the satisfaction of the Purchaser.  

Too often clients find hard rubbish left on the property at their final inspection before settlement. We suggest adding a clause for the Vendor to warrant that any rubbish and personal belongings are removed prior to settlement. 

If the property is sold at auction, insertion of special conditions is generally not applicable.  However, stay calm and carry on, because our friendly team at Wealthsource Legal can assist you with pre-contractual advice as a prospective buyer. As your conveyancer we aim to give you peace of mind and take the angst out of purchasing your new home.