There is a lot to consider when purchasing your first home, a family home or an investment property. It is a major financial decision and both the Buyer and Seller needs to be aware of their circumstances and needs. It is important that both parties obtain pre-contractual advice and negotiate with the other party in order to achieve the best terms possible in accordance with their needs.
There are standard terms inserted in the REIQ contract in order to protect both parties. It is common practice for either party to request special conditions in order to further protect their interests.
The following are some special conditions that can be inserted for the benefit of the Buyer:
- Inclusion of chattels – This is common when the transaction is subject to items that are not fixed to the structure of the property. Items may include furniture, appliances (that are not fixed to the property) and electronics.
- Due Diligence – This is a condition that permits the Buyer to conduct extensive inspections and searches of the property. The Buyer can terminate the contract if it is not satisfied with the results of its investigation of the property. Due Diligence conditions are inserted for a range of reasons including the investigation of development restrictions, council renovation approvals and soil testing (if the property is vacant land).
- Subject To The Sale of Property – This special condition should be inserted if you require funds from the sale of a property for the purchase of the property. It is also common for a special condition to be inserted that a sale and purchase contract must settle simultaneously.
- Body Corporate Pet Approval – If the property is a unit, town house or in a gated community where the Buyer intends to reside with a pet then the Buyer must obtain prior approval from the body corporate. The Body Corporate will require information in relation to the pet including vaccinations and insurance details. It is important the Buyer provides the requested information to the Body Corporate as soon as possible as it can take up to 14 days to provide approval.
It is important that all special conditions in the contract are clear and that parties are familiar with the conditions in order to avoid any dispute. We recommend that you obtain pre-contractual advice from our office so that we can insert conditions and provide advice in order to protect your interests.
Please contact our Everton Park or Oxley office or complete our property enquiry form if we can be of any assistance.