Property is always a great investment, as the old saying goes “they aren’t making any more of it.” Owning your own little corner of the world is a very positive feeling, and it will very likely go up in value over time, making your investment monetarily worthwhile. Because purchasing a piece of property might be one of the largest investments you will ever make, it’s essential that you understand exactly what you are agreeing to.
When you find a piece of property you would like to buy, the first thing you need to do is carefully study the contract of sale. In many cases, this will include special conditions contract of sale attached to the property that are usually designed to benefit the seller. As the person purchasing the property, it’s critical for you to understand exactly what those special conditions are, and what your obligations and rights will be if you decide to sign.
So, what kind of special conditions are we talking about here?
The special conditions in a property sale contract are added requirements and terms the seller requires that are in addition to the standard conditions you would normally see in the contract. It’s a fairly common practice for special conditions to be present, and they will be unique from contract to contract. The special conditions are meant to safeguard the vendor, and the buyer in some instances, against extenuating circumstances and situations in which the sale has met an unexpected obstacle.
Because special conditions are quite often worded in a somewhat opaque manner, whether intentionally or not, it’s always wise to seek some expert help and have an experienced property lawyer read the proposed contract for sale and its special conditions so they can advise you. That way you will have a full understanding of exactly what you are agreeing to when you sign, and don’t end up with any unpleasant surprises!
The following are some of the most common special conditions found in a contract of sale:
- Penalty Clauses – Almost all contracts have provisions regarding what penalties will apply if the purchaser doesn’t settle on time. The penalties range from late fees to added interest charges.
- Release Of Deposit Clauses – This is when a deposit can be released to the vendor prior to the settlement to fund the vendor’s interests like stamp duty on their own property purchases. Be wary of clauses like this to prevent your deposit from being used without your authority before the settlement is finalised.
- Incapacity Clauses – This clause outlines the outcome if something happens to the vendor or purchaser making them unable to conduct their own affairs, or if one of them dies. While some contracts provide that either party is able to be released from the contract, others might only provide that the vendor has the option to be released if something befalls the purchaser, or vice versa.
It’s always incumbent on the part of the purchaser to be fully aware of what the special conditions are before signing!
Sebastian is an accomplished author with a passion for storytelling. His works span various genres, from thrilling mysteries to heartfelt romance novels. With a keen eye for detail and a knack for character development, Sebastian weaves engaging narratives that captivate readers and transport them to new worlds.