BP Clause expiry?
- Thread starter TMNT
- Start date
To the best of my knowledge, anything to do with changing of the numbers is simple argy-bargy.
You've obviously placed an offer to purchase via a contract, and that contract is subject to certain conditions. Until those conditions are met (i.e. agreed by both parties and waived, or eliminated from the contract via the effluxion of time) such that both parties finally arrive at a point where the contract of sale is unconditional......and then it's just a straight swapsy of cash for title deed.
All contracts eventually get to this point.....it's just a case of how long both parties which to **** around before they get there.
Play it by ear depending on who you are dealing with, but I'd suggest in future to not argy-bargy with an experienced Vendor, as they will already know the condition of the dwelling and could easily reply "we note and agree with everything that is in your BP reports, hence why we agreed to list at X and finally agree to sell to you at Y. Now you're asking for Y-2, go away."
A donkey Vendor won't know any different and probably roll over for you. If so, rip in at will.
You've obviously placed an offer to purchase via a contract, and that contract is subject to certain conditions. Until those conditions are met (i.e. agreed by both parties and waived, or eliminated from the contract via the effluxion of time) such that both parties finally arrive at a point where the contract of sale is unconditional......and then it's just a straight swapsy of cash for title deed.
All contracts eventually get to this point.....it's just a case of how long both parties which to **** around before they get there.
Play it by ear depending on who you are dealing with, but I'd suggest in future to not argy-bargy with an experienced Vendor, as they will already know the condition of the dwelling and could easily reply "we note and agree with everything that is in your BP reports, hence why we agreed to list at X and finally agree to sell to you at Y. Now you're asking for Y-2, go away."
A donkey Vendor won't know any different and probably roll over for you. If so, rip in at will.
It depends on the contract, however the buyer and seller will generally have an ongoing right of termination under the building and pest condition until the buyer gives notice of satisfaction or waiver.
Some contracts may deem the condition to be satisfied if notice is not given by the due date.
Some contracts may deem the condition to be satisfied if notice is not given by the due date.
In Qld 'time is of the essence' and if a condition time lapses, it is considered to be satisfactory (ie cooling off, B&P, Finance etc).
I don't know which/if other states adopt this phrase.
pinkboy
That's incorrect, other than cooling off.
Time of the essence means that failing to comply with an obligation by the due date is a breach of an essential term of the contract. This means the other party has a right of termination, not that the condition is deemed to be satisfied.
A standard residential REIQ contract does not deem finance or building and pest to be satisfied.
There is also an argument that deeming provisions in consumer contracts are in breach of unfair contract provisions in the Australian Consumer Law.
Cheers JDM, surprised to get a reply after 2 years, especially one so quickly!
So using the REIQ as an example, the BP clause expiry date merely serves as a guideline, both parties can terminate the contract even after the expiry date?
And same with the finance clause?
Thanks in advance!
hope you did nt have a 2yr BP clause!
actually, if you did, teach me oh master
I wish, maybe if i was playing monopoly!
