Hi folks,
I'm curious to see what sort of conditions others out there use to buy land and property. I'm trying to get creative in how I negotiate deals, but need to make sure I don't freak people out with 6 pages of jargon.
This post, and all others in this thread, does not constitute legal advice. Just ideas that we can work with our solicitors on...
The example below had a funky settlement clause due to risk of christmas shut-down period, and offered a small amt of money during the deal rather than an upfront deposit. I find people respond well to this because the deposit doesn't help with holding costs (e.g. mowing etc) during a long settlement period, but direct payments do offer a little temptation for their personal interest.
I don't have anyone else to discuss these things with, so pleeeeeeease post if you find this interesting!
Have a happy day,
PJ
Here's my latest effort:
Deposit: $1600 payable upon settlement
Finance Amount: Sufficient to complete contract.
Financier: Buyer’s choice.
Finance Date: 63 DAYS FROM CONTRACT DATE
Settlement Date: 17 Days from the date the contract becomes unconditional. (Excluding Public Holidays, Buyer and/or Seller’s Solicitor’s Christmas shut-down period, and weekends)
Special Conditions:
The parties agree that execution of facsimile and/or email (pdf) copies of the Contract will constitute a valid and binding contract.
This contract is subject to the approval of the Rockhampton City Council for the erection of a house on the land, with the approval and conditions being suitable to the buyer. In the event a Council’s decision of satisfaction to the buyer is not obtained, the Buyer may terminate the Contract by giving notice in writing to the Seller or the Seller's solicitors within 5 days after receipt of Council's decision by or on behalf of the buyer.
The seller agrees to sign the consents required to the making of a development application, to permit access from the date of this contract to the property by the buyer and buyer’s experts, agents and contractors and by officers and councillors of the Rockhampton City Council and to co-operate with the buyer in seeking approval. The access would not be for building work, only inspections.
The buyer agrees to pay fortnightly contributions of $100 per fortnight towards the purchase money by instalments. These instalments would be paid via electronic transfer directly into a bank account nominated by the seller. The period of these instalments being from the 31st October 2009 until the contract becomes unconditional.
This Contract is subject to and conditional upon the Buyer obtaining finance from the financial institution of the buyer’s choice within 63 days of this Contract to the satisfaction of the buyer. In the event finance of satisfaction to the buyer is not obtained, the Buyer may terminate the Contract by giving notice in writing to the Seller or the Seller's solicitors within 63 days of the date of this contract.
This Contract is subject to and conditional upon the Buyer obtaining search results with the results of these searches being to the Buyer's satisfaction within 21 days of this Contract. In the event that any of these search results are not to the satisfaction of the Buyer, the Buyer may terminate the Contract by giving notice in writing to the Seller or the Seller's solicitors within 21 days of the date of this contract.
This Contract is subject to and conditional upon the Seller providing the Buyer's solicitor with a facsimile or email (pdf) copy of this Contract (signed by the Seller) before 10am on Thursday 22nd October 2009.
I'm curious to see what sort of conditions others out there use to buy land and property. I'm trying to get creative in how I negotiate deals, but need to make sure I don't freak people out with 6 pages of jargon.
This post, and all others in this thread, does not constitute legal advice. Just ideas that we can work with our solicitors on...
The example below had a funky settlement clause due to risk of christmas shut-down period, and offered a small amt of money during the deal rather than an upfront deposit. I find people respond well to this because the deposit doesn't help with holding costs (e.g. mowing etc) during a long settlement period, but direct payments do offer a little temptation for their personal interest.
I don't have anyone else to discuss these things with, so pleeeeeeease post if you find this interesting!
Have a happy day,
PJ
Here's my latest effort:
Deposit: $1600 payable upon settlement
Finance Amount: Sufficient to complete contract.
Financier: Buyer’s choice.
Finance Date: 63 DAYS FROM CONTRACT DATE
Settlement Date: 17 Days from the date the contract becomes unconditional. (Excluding Public Holidays, Buyer and/or Seller’s Solicitor’s Christmas shut-down period, and weekends)
Special Conditions:
The parties agree that execution of facsimile and/or email (pdf) copies of the Contract will constitute a valid and binding contract.
This contract is subject to the approval of the Rockhampton City Council for the erection of a house on the land, with the approval and conditions being suitable to the buyer. In the event a Council’s decision of satisfaction to the buyer is not obtained, the Buyer may terminate the Contract by giving notice in writing to the Seller or the Seller's solicitors within 5 days after receipt of Council's decision by or on behalf of the buyer.
The seller agrees to sign the consents required to the making of a development application, to permit access from the date of this contract to the property by the buyer and buyer’s experts, agents and contractors and by officers and councillors of the Rockhampton City Council and to co-operate with the buyer in seeking approval. The access would not be for building work, only inspections.
The buyer agrees to pay fortnightly contributions of $100 per fortnight towards the purchase money by instalments. These instalments would be paid via electronic transfer directly into a bank account nominated by the seller. The period of these instalments being from the 31st October 2009 until the contract becomes unconditional.
This Contract is subject to and conditional upon the Buyer obtaining finance from the financial institution of the buyer’s choice within 63 days of this Contract to the satisfaction of the buyer. In the event finance of satisfaction to the buyer is not obtained, the Buyer may terminate the Contract by giving notice in writing to the Seller or the Seller's solicitors within 63 days of the date of this contract.
This Contract is subject to and conditional upon the Buyer obtaining search results with the results of these searches being to the Buyer's satisfaction within 21 days of this Contract. In the event that any of these search results are not to the satisfaction of the Buyer, the Buyer may terminate the Contract by giving notice in writing to the Seller or the Seller's solicitors within 21 days of the date of this contract.
This Contract is subject to and conditional upon the Seller providing the Buyer's solicitor with a facsimile or email (pdf) copy of this Contract (signed by the Seller) before 10am on Thursday 22nd October 2009.