REIQ Contract for Residential Lots in a Community Titles Scheme (13th edition)

Purpose of Special Condition: the purpose of this special condition is to amend the operation of Standard Condition 7.8(2) to alter the deduction to the Purchase Price that the Buyer is entitled to at Settlement, in circumstances where the Seller fails to install compliant smoke alarms in the Property prior to Settlement.

When to use this Special Condition: A Buyer may wish to include this special condition where the deduction as per the Contract Standard Terms would not be sufficient to cover the cost of installing compliant smoke alarms. A Seller may wish to include this special condition if they would prefer for a deduction to be made (rather than arrange the smoke alarm works to be completed) or where the deduction as per the Contract Standard Terms would far exceed the actual cost for the Buyer to install compliant smoke alarms.

Special Condition:

Standard Condition 7.8(2) is amended to delete the words, ‘equal to 0.15% of the Purchase Price’ and replace them with the words, ‘of $[insert fixed figure required by Buyer, expressed both numerically and written].

Purpose of Special Condition: the purpose of this special condition is to delete the right of either party to unilaterally extend the Settlement Date for up to five (5) Business Day, as provided for in Standard Condition 6.2.

When to use this Special Condition: A Seller will need to include this Special Condition if they are simultaneously purchasing and/or moving to another Property, to ensure that they have certainty around when Settlement is actually going to occur. Similarly, if the Buyer is simultaneously selling another property, they will need to ensure that Contract deletes this Standard Condition, to avoid being in breach of Settlement of the subject Contract, should the Settlement Date be unilaterally moved by the Buyer under that Contract. While both parties may think that the inclusion of this Standard Condition provides ‘flexibility’ regarding the Settlement Date, it is really a double-edged sword and practically, has the effect of providing neither party (nor their financiers) with any certainty regarding when Settlement will actually occur.

Special Condition:

The parties acknowledge and agree that Standard Condition 6.2 is deleted and does not apply to this Contract. For the sake of clarity, the deletion of this Standard Condition does not preclude the parties from agreeing to alter the Settlement Date.

Purpose of Special Condition: the purpose of this Special Condition is to remove the ‘default position’ that applies if a Seller does not advise the specific location (eg. the specific law firm) at which Settlement will take place, at least two clear Business Days prior to Settlement. Under the default position, Settlement must take place at the Titles Office located closest to where the sale property is located.

When to use this Special Condition: we recommend including this Special Condition in all circumstances, but especially when acting for a Seller, especially as the specific location of Settlement can sometimes not be known until closer to Settlement. While most parties would act reasonably and select a location that suits the parties better, this default position could disadvantage a Seller whose lawyers and/or financier are not located near the sale property, as the Seller would then need to appoint a town agent or agents in that location. This same issue would arise with Buyers, but as the Seller nominates the location of Settlement, the Buyer may often have to do this anyway (whereas the Seller wouldn’t need to, but for the operation of this condition).

Special Condition:

The parties acknowledge and agree that Standard Condition 5.1(2) is deleted and replaced with the following wording:

‘If the Seller has not nominated an office under clause 5.1(1)(b) or the parties have not otherwise agreed where settlement is to occur by 5pm by the date one (1) Business Day before the Settlement Date, Settlement will take place at the office of the Seller’s solicitor.’