Understanding a Sales Contract

[RedCat]

Hi all,

I just had a quick look over a contract, and within it, it states council rates are $1509 and are in arrears by $1509. Within the same notification (issued by council) it states that the new buyer of the property will be liable to pay these rates, which appear to date back to Oct 2010. Is that normal or am I reading it wrong or something?

 

[Propertunity]

I just had a quick look over a contract, and within it, it states council rates are $1509 and are in arrears by $1509. Within the same notification (issued by council) it states that the new buyer of the property will be liable to pay these rates, which appear to date back to Oct 2010. Is that normal or am I reading it wrong or something?

Hi Redcat,

It is pretty normal. What happens in practice, is that at settlement any outstanding rates are paid out by the new buyer, BUT this reduces the proceeds of the sale passed onto the outgoing owner (so in effect the outgoing owner pays).......but make sure this is the meaning in the wording of the contract.

I hope you're getting a soli to look over the rest of the contract?

 

[RedCat]

Yes I will send it to the lawyer but it just caught my eye because it was the full amount and a year overdue I guess. Thanks for clarifying.