Get the SPECIAL conditions right before you sign your contract

When buying or selling land in Queensland, the sale contract must be in writing. Contracts for Queensland conveyances are a standard REIQ contract that includes clauses such as the price of the property, a date for you to obtain finance approval and the settlement date (generally known as the standard terms). But commonly a conveyancing contract will include additional clauses, which are known as ‘special conditions’.

A special condition can be included at the request of either the buyer or the seller, and must be agreed by both parties. It is important to understand what the special condition does and how it effects your rights before you sign the contract.

If you require a special condition, it must be included in the contract prior to signing. It can be extremely difficult to have additional clauses added once a contract has been signed by all parties. Once the contract is signed by all parties is becomes legally binding, and neither party is obligated to agree to the inclusion of an ‘additional’ clause.

Part of your conveyancing process is checking and being advised on the special conditions before signing your real estate contract.

Some special conditions which are commonly inserted into conveyancing contracts are as follows:

• If a buyer needs to sell an existing property to fund the purchase of the new property, a condition can be inserted that the purchase is subject to the successful completion of the prior sale. Alternatively it may say that the settlement of both the sale and purchase of the two properties must occur at the same time (so if you don’t sell your existing property you are not obligated to purchase the new one).

• Body corporate approval for a pet can be a condition added when buying a unit/apartment.

• A condition may require a seller to complete an action or certain works prior to settlement (ie. remove rubbish from the property / mow the lawn / repair a leaking tap etc).

• Conditions can enable testing the soil for the purpose of pool installation or house renovations and checking whether plans comply with the local Council regulations.

There are many other special conditions that can be included in a contract. Special conditions should always very clearly state what is to be done, who is responsible for completing the action, the time frame and what the consequences will be in the event the special condition is not satisfied or completed within the specified period.

It is extremely important that the special conditions are clear and concise. Having a lawyer carefully draft a special condition will ensure the clause is not ambiguous or vague, which will in turn avoid disputes and save all parties involved time and money.

We strongly recommend that you have your conveyancing contract reviewed by our conveyancing team prior to signing to ensure that you have the chance to include any special conditions you may need to protect your interests.

Millwater Tyrrell Law offer a free initial discussion about your sale or purchase with our expert Ipswich conveyancing team. Do not hesitate to give us a call to find out more about special conditions on your conveyancing contract.