Common Condition Clauses

conditional offer is one that hinges on certain things happening. Such an offer is also a binding contract once all your conditions are satisfied and you are bound to proceed with the purchase. Conditions may relate to securing finance, search and approval of title, receipt of a satisfactory builder’s report, or the unconditional sale of the purchaser’s property.

A property lawyer can advise on the wording of the conditions to ensure they meet your requirements and can assist in carrying out the work to determine if the conditions are met.

 

Some common clauses include:

(Please note use these clauses at your own behest, we would always suggest you get legal advice before proceeding with any agreement)

 

Conditional on Building Inspection Report

 

  • This agreement is conditional upon the approval in good faith by the purchaser of all information disclosed by a Building Inspection Report obtained in respect of the property within __________________________Working days of the date of this agreement. This condition is inserted for the sole benefit of the purchaser.
  • If a report obtained under sub-clause (a) is not satisfactory no right of cancellation may be exercised by the purchaser unless:
  • A copy of the report has been provided to the vendor.
  • Written notice of the grounds for such dissatisfaction has been given, and
  • The vendor is unable or unwilling within 3 working days, or such longer period as the parties may agree, to satisfy the purchaser’s concerns in respect of the stated ground.

(c)           Nothing in the sub-clause (b) shall affect:

  • The purchaser’s rights to waiver at any time prior to a valid cancellation by the vendor.
  • The vendors right of cancellation for non-fulfilment of the condition upon the expiry of the period stated in (a) subclass.

 

Conditional on Finance

 

This agreement is conditional upon the Purchaser arranging finance on terms and conditions satisfactory to the Purchaser and advising the Vendor or the Vendor’s solicitor on or before 4pm on …………………………………………… that this condition has been satisfied.  This condition is inserted for the sole benefit of the Purchaser.

 

Solicitors Approval

 

This agreement is conditional upon the purchaser’s solicitor approving this agreement as to title, form and content on or before ……………..pm within……………… working days of the date of this agreement.  Such approval or disapproval shall be entirely at the discretion of the solicitor for the purchasers and they shall not be required to give any reasons for granting or declining approval.  This condition is inserted for the sole benefit of the purchaser.

 

Due Diligence (Short)

 

Completion of this contract by the Purchaser is entirely conditional upon its completing and being satisfied with a due diligence programme in respect of the leases, tenancy and construction of the building and any other factors it may deem necessary within              working days of the execution of this contract by both parties.  This clause is inserted for the sole benefit of the Purchaser.

 

Due Diligence (Long)

 

18.1  This agreement is conditional upon the Purchaser being entirely satisfied on or before the _____________________ working day following the date of this agreement as to the matters hereinafter described following the Purchaser carrying out a due and diligent investigation of:

  1. a) The title to the property and any encumbrances on the Property
  2. b) The structure of the building
  3. c) The possible cost of any repair and urgent building maintenance
  4. d) The content of the lease existing lease agreement with the existing tenant West        Jet Co Ltd

 

18.2  The Vendor acknowledges and agrees that from the date of this agreement the Purchasers’ engineers, advisors and other nominated professionals may have access to the Property to carry out due diligence as per clause 15.1.

 

18.3  The parties acknowledge that the condition in clause 15.1 is inserted for the sole benefit of the Purchaser.

 

18.4  The parties agree that satisfaction of the condition contained in clause 15.1 shall be at the sole discretion of the Purchaser and that if the condition is not fulfilled due to the Purchasers not being satisfied with any aspect of the Property, the Purchaser shall not be obliged to state any reason for the Purchaser’s lack of satisfied.

 

18.5  The Purchaser is to notify the Vendor or the Vendor’s solicitor by 5pm on the said date that this condition has been satisfied.  If notice is not received within the aforesaid time the Purchaser shall be deemed to have waived his rights under this condition.

(This post does not imply legal advice)

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