Special condition in Contract of Sale (VIC)

[imbi3]

Hi all

There is a condition that has been added to the Contract of Sale for a property I am looking to purchase

'Where a purchaser is deemed by section 27(7) of the Sale of Land Act 1962 to have given the deposit release authorisation referred to in section 27(1), the purchaser is also deemed to have accepted title.'

I am a bit confused as to what the clause means. It sounds like, if the deposit gets released, I am deemed to have accepted (or received?) the title when in fact I won't get the title until the settlement date?

Thanks

 

[Aaron_C]

Well you have accepted title by releasing the deposit under s27. This is because you now have an 'equitable' interest in the property.

 

[Terry_w]

Hi all

There is a condition that has been added to the Contract of Sale for a property I am looking to purchase

'Where a purchaser is deemed by section 27(7) of the Sale of Land Act 1962 to have given the deposit release authorisation referred to in section 27(1), the purchaser is also deemed to have accepted title.'

I am a bit confused as to what the clause means. It sounds like, if the deposit gets released, I am deemed to have accepted (or received?) the title when in fact I won't get the title until the settlement date?

Thanks

You must be using a conveyancer?

 

[imbi3]

You must be using a conveyancer?

Yes, will run pass him tomorrow but I thought it is rather unusual. Have never seen this before

 

[Terry_w]

Yes, will run pass him tomorrow but I thought it is rather unusual. Have never seen this before

Time to see a solicitor maybe?

 

[LexCon]

Hi This is very common. It refers to section 27 of the sale of land act which prescribes that if a purchaser agrees to the early release of the deposit they a deemed to have accepted title.

Accepted Title means you have completed all your inquiries (or your conveyance/solicitor has) and you are accepting the property as it is and will not be contest anything discovered latter on about the property and you are happy to proceed to settlement.

I personally do not like section 27 of the sale of land act, the only sate in Australia that has anything like it is Victoria.