Hi all,
We are signing the contract on Monday but I want to ask how you word the Conditions of Sale. For Example:
1) Subject to fincance;
2) Subject to building inspection;
3) Subject to pest inspection;
4) Subject to business partner approval.
Is this how you word things?Kind Regards all
PaulHi again,
I have just been searching the forums and I think this will keep me out of trouble. Any comments.
- Subject to building and substructure, internal and external walls, internal and external roof, guttering and downpipes, windows, doors and frames, ceilings and floor coverings, plumbing, electrical and gas fittings, wet area damp proofing, pergola’s, sewer and water mains being visibly and physically in fair and reasonable condition given the age of the building.
- Subject to pest inspection, carried out in accordance with AS 4349.3, revealing no signs of active or dormant termite activity, timber pest attack, timber fungal decay or wood borer activity in any internal or external timber structures for the building.
- Subject to no council unapproved structures or alterations on the property.
- Subject to all tenants and their effects being vacated from the property before settlement.
- Subject to finance approval of the purchasers choice.
- Subject to purchaser’s business partner approval.
- This offer, unless earlier withdrawn, will lapse at 5:00pm 31 Oct 2008.
Regards
PaulSome or all of those may apply – you can't put in conditions which are irrelevant.
eg if it is to be sold with tenant in place, condition 4 doesn't apply if the tenant is under lease, if AS 4349.3 does not apply/exist then this clause is irrelevant (delete the reference to the standard – what if the inspector doesn't carry it out to the standard?), who is going to inspect the building – is it your opinion or that of a registered building inspector as to the reasonableness of the condition of the premises?
Subject to business partner – if they are party to the contract, then they should be party to the offer.Thanks Scott,
I have adjusted the conditions as suggested. The property is currently tennanted and their lease has expired. They are now on some sort of open ended lease. So, should I keep clause 4 in?- Subject to building and substructure, internal and external walls, internal and external roof, guttering and downpipes, windows, doors and frames, ceilings and floor coverings, plumbing, electrical and gas fittings, wet area damp proofing, pergola’s, sewer and water mains being visibly, audibly and physically in fair and reasonable condition given the age of the building as considered by the purchaser.
- Subject to pest inspection revealing no signs of active or dormant termite activity, timber pest attack, timber fungal decay or wood borer activity in any internal or external timber structures for the building.
- Subject to no council unapproved structures or alterations on the property.
- Subject to all tenants and their effects being vacated from the property before settlement.
- Subject to finance approval of the purchaser’s choice.
- This offer, unless earlier withdrawn, will lapse at 5:00pm 31 Oct 2008.
You are crazy if you are just taking advice off a forum. Go and see a solicitor before you sign,
What happens if you don't specify the details of the finance ? The vendor could find you a lender at 20% pa and your could be in trouble.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry,
We have seen our settlement agent today and had her review the conditions we were thinking of using.
Posting this question on the forum was to get a feel what other people do. I must say how surprised I have been as to how few replies it has had.
Regards
PaulPaul
I can see you have put a lot of thourght into the conditions of your purchase. This is wise and well done. However, most agents will look at this and since they work for the vendor they most likly will question them. Terry W make a good point seek legal advise not from a conveyencer from a solicitor before you sign. Im not a solicitor but for what its worth, No1 Is too much detail. What is fair & resonable?? Subject to a Building and pest report satisfactory to the purchaser. Simple as that. Paul if you have reservations about the place pay a reputable inspector to check the place out & be there when it is inspected and get the written report. I just went throught this with a friend and it paid for it self as it revealed a lot of things that needed work. Dont forget a conveyencer is not a solicitor so get a legal practitioner that does conveyancing to check your contract out before you sign. In Vic when you do this you loose your 3 day cooling off period but it may be worth it.Good Luck.
T…………….
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