What does the following condition in the contract mean?

[alexz1011]

Hi all,

I have been reading through the contract of one property that I am interested in. There is the following condition that I don't quite understand and by the sounds of it, I am going to be at the disadvantage? (Sorry, if it sounds ignorant, I am pretty new to this kind of thing.)

SETTLEMENT
The purchaser acknowledges that at the settlement date, the Certificate of Title relating to the Land Titles Office and/or may not not be available to be handed over to the purchaser at the settlement. The purchaser shall accept in lieu of the Certificate of Title relating to the land, a Transfer of Land with an Order to Register endorsed thereon by the controlling party directing the Land Titles Office to issue the Certificate of Title to the purchaser or any other person nominated by the purchaser.

I know I should be talking to a lawyer, but I just wanted to hear people's general thoughts on this before I pay the lawyer.

Thanks!

 

[Piston Broke]

I means you better have your Certificate of title (CT) or an equivalent at settlement.
The piece of paper that officially states your the owner of the property.

 

[Propertunity]

alexz1011,

It means that the property you are interested in is a newly created title. This may be because it has just been sub-divided (as in a back yard being cut up) or a new development where a strata title is in the process of being created.

Whoever the vendor is in this case, that you are purchasing from, wants his cake and to eat it too. That is to say, he wants your settlement money and he does not want to wait to get your money before he hands over the 'possibly not yet created Cert. of Title'. But you will accept an Order to create the title on the right departments in lieu.

 

[Gee Cee]

Sounds Risky

 

[Propertunity]

Sounds Risky

Probably sounds riskier than it possibly is. When it says "Order to Register endorsed thereon by the controlling party directing the Land Titles Office to issue the Certificate of Title to the purchaser" that just appears to be a paperwork passing, stamping and registering exercise, which all takes time.....time the vendor does not want to spend waiting for his money in this instance.

 

[jrc]

If you are borrowing you need to find out what your lender's attitude to this will be. If they are OK with it, get it put in writing by them and make sure your solicitor has that document when they attend settlement in case it hasn't been communicated from one part of your lender's organisation to the people settling for it

 

[Jas]

I know I should be talking to a lawyer, but I just wanted to hear people's general thoughts on this before I pay the lawyer.

What did the lawyer say?