Contract of Sale of Real Estate – Special Conditions.
Regardless of what type of property you are acquiring, in Victoria every agreement for the purchase and sale of property must be in writing. It is usually in the form of a Contract of Sale of Real Estate approved by the Law Institute and Real Estate Institute of Victoria. The contract will contain general conditions and in many cases a Vendor’s lawyer will also add their own special conditions.
However, Purchasers can also request special conditions be included in the contract.
These may include:
- Subject to a satisfactory building and pest inspection report;
- Subject to planning or building or building approval if the investor wants to renovate or develop the property;
- Early access (e.g. for the Purchaser’s surveyor to measure the property or carry out soil tests);
- A due diligence period to conduct a detailed analysis of the property, and
- The Vendor to provide a depreciation schedule in the case of a new property.
Special conditions for the benefit of a Purchaser are designed to protect Purchasers and to lock in a price whilst still conducting due diligence and these conditions will give a Purchaser an “out” if any of the agreed conditions are not satisfied, while still binding the Vendor if ultimately the Purchaser wants to proceed. It also ensure the property comes off the market.
Whether you are selling or purchasing a property it is important to make sure the contract is drafted properly and deals with the relevant issues. It should always be checked by a property lawyer before it is signed.
For specialist contract and Estate Agent advice and assistance with authorities, please contact Ron Cohen or one of the team at Tisher Liner FC Law.
