Read the Fine Print: What You Should Know About Special Conditions
A Contract for Sale of Land can be tricky, especially for a first timer. The endless clauses and conditions are enough to cause a headache. You try to understand it because if you do not, you might miss an important condition.
Apart from the standard conditions that come with the contract, there are other conditions that require your attention. Special conditions aren’t frequent, but these are not rare either. Failure to read the fine print might result in trouble.
During the preparation of the Contract for Sale, licensed property solicitors from Townsville can offer the right advice on special conditions, especially for vendors.
But what are these special conditions?
Deposit by Instalments
While buying a property is one of the biggest achievements in anyone’s life, not everyone has the funds for a 10% deposit. One of the special conditions involves deposit payment through instalments. Through mutual settlements, the typical exchange of contracts happens with 5-10% deposit. The vendor’s conveyancer, however, should consider the remaining 5%; it should be part of the deposit.
Purchasers who do not follow the contract will forfeit their 10% deposit. In case the purchaser fails to fulfil their end of the contract, this condition covers the vendor.
This condition keeps the vendor safe from any financial loss. When the purchaser cannot complete the settlement, the penalty interest becomes payable.
A penalty interest is a part of the purchase price, compounded daily after the completion of the settlement. In most cases, it’s a costly ordeal; the days that compound the penalty interest include weekends and even holidays.
When it comes to special conditions, the responsible party should always be clear. Both sides should know who is in charge of what action, which payment and the due date. Right wording and precision of terms also spare both parties from disputes.