Buying or selling a property is already a lot to consider between inspections, finances, and moving plans. Then follows paperwork, especially the sale deal. Most people expect a contract to include the basics, but “special conditions” surprise them.
Before signing, you should understand these extra terms, which can affect your rights and responsibilities. This guide explains specific conditions, their inclusion, and what buyers and sellers should know.
What Are Special Conditions?
A contract of sale sets out the key details of a property transaction: price, settlement date, deposit, and the names of the parties involved. Alongside these standard clauses, special conditions are extra terms tailored to the specific property or agreement between the parties.
Put simply, they’re the “fine print” that deals with issues not covered in the general conditions.
Special conditions can:
- Add conditions (e.g., seller agrees to repair before settlement).
- Protect one party (e.g., a clause letting the buyer back out if finance is refused).
- Reflect property features like land-use limitations.
Common Special Conditions in Property Contracts
While the exact conditions vary, here are some common examples seen in Australian property transactions:
1. Finance Approval
This gives buyers the option to back out if they are unable to get finance within the allotted time. It protects purchasers from being forced to move forward without funding.
2. Building and Pest Inspections
A clause enabling buyers to perform inspections is found in many contracts. If significant problems arise, such as termite damage or structural flaws, the buyer can ask for repairs, a price reduction, or cancel the contract of sale.
3. Subject to Sale of Another Property
Some buyers include a condition stating they must sell their current home before completing the purchase. This gives them breathing room financially, but sellers may view it as a risk.
4. Repairs and Maintenance
Before settlement, sellers often agree to address specific problems (such as broken appliances or plumbing leaks). The contract should have a clear description of these.
5. Development or Council Approvals
A clause may require the seller to obtain council approval before settlement if the property has unapproved structures — like a pergola or extension.
6. Early Access or Extended Settlement
Special conditions can grant people ready for buying a property early access (to measure up or renovate) or allow either party more time to settle.
Why Do Special Conditions Matter?
Special conditions matter because they can shift the balance of risk between the buyer and seller. For example:
- Buyers are protected from unexpected costs, property defects, and financial issues.
- To ensure buyers meet deadlines or accept property conditions “as is,” sellers may use them.
Overlooking these terms can cause disputes, delays, or financial loss. Both parties should carefully read and understand every clause before signing.
Key Considerations for Buyers
Special conditions can be your safety net if you’re buying a property. Here’s what to keep in mind:
- Check timelines carefully. Make sure finance and inspection times are realistic.
- Know your exit options. Understand when you can withdraw and what penalties (if any) apply.
- Don’t ignore property-specific clauses. The residence may need compliance certificates if it has a pool.
- Ask questions. Before signing, get expert advice on anything uncertain.
Key Considerations for Sellers
For sellers, special conditions are equally important:
- Be realistic. Agreeing to too many conditions can put you at a disadvantage or cause delays.
- Assess buyer requests. Some are fair (like inspection clauses), while others may increase risk (like “subject to sale” clauses).
- Understand your obligations. If you agree to repairs or approvals, make sure you can complete them within the timeframe.
- Balance flexibility and certainty. A smooth sale often comes from compromise.
Negotiating Special Conditions
Special conditions apply to funding, inspections, and repairs. Missing these deadlines could result in contract cancellation or deposit loss.
Each condition should be written clearly, without confusion. A lack of clarity can cause issues.
How Special Conditions Affect the Timeline
Special conditions often come with finance, inspections, or repairs deadlines. Missing these deadlines can have serious consequences, such as the contract falling through or deposits being lost.
That’s why both parties must track important dates and communicate throughout the process.
Why Professional Guidance Helps
Special conditions might be simple or complex, especially if the property has unique features or difficulties. Professional conveyancing advice provided by Eagle Peak ensures you fully understand the implications.
This means buyers know their protections. For sellers, it entails making sure you refuse to agree to anything that might later work against you.
If you need more clear guidance on special conditions and property contracts, reach out to us today to make your property journey simple and stress-free.
Wrapping Up
In the end, special conditions are essential provisions that protect both buyers and sellers; they are not merely extra words on paper. These provisions can influence the outcome of a real estate transaction, whether they deal with financing, inspections, or settlement flexibility.
If you’re buying or selling a property, take the time to read, understand, and, if necessary, negotiate these conditions before committing.
FAQs
Are special conditions always included in a contract of sale?
Not always. Standard contracts may not have them but can be added if the buyer, seller, or their representatives require.
Can I write my own special conditions when buying a property?
You can suggest them, but a professional should always review them to ensure they’re clear and enforceable.
What happens if special conditions aren’t met?
If conditions aren’t satisfied within the agreed timeframe, the contract may be cancelled, or the parties may negotiate an extension.
Do special conditions favour buyers more than sellers?
Often, they protect buyers (like finance or inspection clauses), but sellers can also use them to set clear requirements.
