YOU CAN ADD YOUR OWN CLAUSES TO A VENDOR'S CONTRACT NOTE

If the property you're looking at buying needs renovations, then the standard contract of sale and vendor's statement that the real estate agent offers might need some alterations too. You can submit your offer to buy the property with whatever clauses you need, to give you the best possible edge. It's then up to the vendor to decide whether to accept them.

The following are examples of clauses we've seen added to the vendor's statement or contract of sale by a buyer and successfully accepted by a seller:

1.   Solicitor's approval

If you see a property you like on a weekend put, "Subject to my solicitor's approval by 5pm Monday". At least then the property will be taken off the market.

2.   Lapse of buyer's offer

If you believe the seller may be using your offer to force another potential buyer to increase their offer and then using their increased offer to put pressure on you to increase your offer, simply add a clause stating, "The offer to purchase this property contained in this contract will lapse unless written notice of acceptance of it is received by the buyer or the buyer's solicitor by no later than 5pm on the (insert date)".

3.   Access

If you want to gain access to the property before settlement, simply add, "In order to allow the buyer to take measurements and obtain quotes for renovation and building work which they propose to carry out following completion, the seller agrees to allow the buyer access to the property before settlement during business hours Monday to Friday upon giving a minimum of 24 hours' notice to the seller or the seller's agent".

4.   Early settlement

A special condition must be added, "The buyer will have the right to settle early, on a date to be nominated by it provided that it gives to the seller 14 days notice in writing that it requires such an early settlement and it nominates in that notice the earlier date for settlement".

5.   Due diligence

The property you are buying may require a more exhaustive investigation of quite a number of matters, then simply add, "This agreement is conditional upon the buyer conducting investigations and enquiries about the property and all related matters and being satisfied with the results of the enquiries including and without limitation: (a) a survey of the property; (b) a building, termite and pest inspection; (c) fire safety matters; (d) soil tests; (e) any encroachments by or on the adjoining properties; (f) any other matter deemed by the buyer to be relevant to the purchase".

6.   Feasibility

You may have a specific renovation or development in mind, or demolishing an existing house to construct five units. It will then be appropriate to include a clause that makes the contract subject to you carrying out a feasibility study to satisfy yourself that you can strata title the flats on terms and at a cost acceptable to you, or construct a number of units of a size and of a design satisfactory to you.

7.   Owners corporation search

It is important to conduct a full and complete investigation of the owners corporation records, simply add, "This contract is subject to and conditional upon the buyer undertaking an inspection of the owners corporation records and being satisfied with the outcome of this inspection within 14 days from the date of this contract".

8.   Risk

The risk of any damage to the property passes from the seller to the buyer within a day or two of formation of the contract of sale. Buyers should therefore take out interim insurance but in some cases it may not be possible, then simply add, "Regardless of any other clause in this contract, the property is at the seller's risk from the date of this contract until settlement date".

9.   Buying a property already tenanted

Make the contract subject to checking that the lease matches the representations made by the seller and the seller's agent. This will highlight if the lease contains any options which are nearly always for the benefit of the tenant.

Most of the clauses listed above can be more detailed, so, for exact wording of the clause in question, general matters on a contract of sale or on a vendor's statements please contact your preferred solicitor.