Purchaser’s Must-Haves: Special Conditions

As a bare minimum, you should include these three (3) clauses in your offer to purchase. This includes:

1. Subject to Finance conditions
   Pre-approval is not unconditional finance approval.
   Including this clause means that provided you have done all things possible (including applying for bank finance promptly), and finance is not approved, provided you have a bank issued letter confirming the same, you can walk away from the contract and have your deposit returned.
   
   Your approval date should read as 14 days from the contract date. An LIV standard form contract will have a section in its particulars for you to opt into a finance clause.
   
   
2. Subject to Building and Pest condition
   What do you know about the structural integrity of the house? What about the termite protection strategies that are in place?
   
   Leave this to a registered builder and state-licensed pest inspector to tell you in their comprehensive inspection report, subjecting your contract/offer to a building and pest inspection.
   
   Your inspection period should read as 14 days from the contract date. An LIV standard form contract will have a section in its particulars for you to opt into a building and pest condition.
   
   
3. Subject to all fixtures and fittings being in working order condition
   You want your monies worth when purchasing a house. To avoid outlay costs, this condition can ensure you can call upon the seller if you identify any fixtures or fittings that are not working, and for the seller to cover the fixing costs. See below for our suggested wording:
   
   
   1. The vendor warrants that all fixtures and fittings are in working order on the day of sale.
   2. If the fixtures and fittings are not in working order, the vendor agrees to:
      • Cover the rectification costs (‘rectification costs’) before or on the settlement date and arrange the necessary licenced tradespersons to attend the property to attend to the works in a professional workmanship-like manner (‘rectification works’); and
      • if the fixtures and fittings are not rectified on the settlement date, the vendor agrees to set aside an amount sufficient to cover the rectification costs in the trust account of the vendor’s legal representative. The rectification costs shall be held on trust until the purchaser is satisfied that the rectification works, after the purchaser shall promptly agree to the release of the balance of the rectification costs to the vendor (if any).
        
        

There will also be special conditions introduced by the seller in their contract. Unsure what to look out for? Book in a time with Legalled, and let us look over this for you.