Special conditions

for Northern Territory residential real estate contracts

The special conditions in this booklet have been drafted by our lawyers. They are generic and may not suit all circumstances. We are happy to prepare specific special conditions to suit the circumstances of each contract.

SELLER TO REMAIN AS TENANT AFTER SETTLEMENT

(a) The Buyer agrees that the Seller may remain in possession of the Property after Settlement until 5pm on ………………………. by which time the Seller must vacate the Property.
(b) The Seller must use the Property reasonably until the Seller vacates the Property and must maintain the Property in substantially the same condition at the Contract Date (fair wear and tear excepted).
(c) The Seller’s possession after Settlement shall be under a licence personal to the Seller and does not:
(i) create a relationship of landlord and tenant; or
(ii) waive the Buyer’s rights under this Contract except to the extent that they are inconsistent with this condition.
(iii) give any right to the Seller to assign such license.
(d) While the Seller is in possession of the Property, the Seller must insure the Property to the Buyer’s satisfaction.
(e) On vacating the Property, the Seller must ensure that all keys in the Seller’s possession and in the Seller’s Agents’ possession are handed to the Buyer.
(f) There shall be no amount payable by the Seller to the Buyer for the Seller’s occupation of the Premises.

PURCHASER PURCHASES THE PROPERTY ‘AS IS, WHERE IS”

Despite any other clauses in this Contract to the contrary, the Buyer purchases the Property and all improvements upon it on an “as is” basis and without limiting the generality of this, will not make any objection to the state of repair of the improvements and any failure to comply with any lawful requirements issued by any Authority either before or after the Contract Date.

WORK TO BE CARRIED OUT BEFORE SETTLEMENT

(a) The parties agree that certain works (“Nominated Works”), as set out below, are to be completed by the Seller prior to Settlement.
(b) The Seller shall complete the Nominated Works in a proper and workmanlike manner, ensuring compliance with the Building Code of Australia.
(c) Where there is material compliance by the Seller with the terms of this special condition, then in the event that this Special Condition is not completely satisfied at Settlement, then the Buyer’s only remedy against the Seller is for compensation, but only if claimed by the Buyer in writing on or before Settlement.
(d) The Buyer may not delay Settlement or withhold any part of the balance Purchase Price because of any compensation claim under this special condition.
(e) The parties must act reasonably in relation to this Special Condition.
(f) Nominated works:
……………………………..
……………………………..

CLEANING

The Seller must at its expense before Settlement do the following:
(a) Ensure that all rubbish and debris are removed from the Property and that the improvements on the Property will be transferred to the Buyer on Settlement in a neat, clean and tidy condition; and
(b) Arrange for the carpets to be cleaned by a professional carpet cleaner and deliver to the Buyer at Settlement the receipt for the carpet cleaning.

RIGHT OF SELLER TO MAKE A CONTRACT UNCONDITIONAL IF THEY SECURE A BETTER OFFER (AKA “48 HOUR SUNSET CLAUSE”)

(a) If the Seller receives a written offer on terms considered by the Seller to be more favourable before this Contract goes unconditional, the Seller may give notice (‘Notice”) to the Buyer of such an offer together with a copy of the offer.
(b) The Buyer, upon receipt of the Notice may elect to declare this Contract unconditional by giving notice to such election (“Notice of Election”) to the Seller within two (2) days of the Seller giving the Notice.
(c) Should the Buyer not deliver a Notice of Election in accordance with this special condition then the Seller may by notice to the Buyer terminate this Contract and the Deposit shall be refunded to the Buyer in full.

SALE BY EXECUTOR WHERE DECEASED HAS MADE A WILL

(Notes: To be used where deceased left a will and nominated an executor. Seller’s name on the contract is to be the personal representative (i.e. executor). Allow for at least 30 days for the registration date.)

(a) The Buyer acknowledges that the Seller is not the registered owner of the Property at the Contract Date.
(b) This Contract is conditional upon the registration at the land titles office of an Application to Register a Personal Representative (the “Application)” so that the Seller is registered as the personal representative of the registered owner(s), within ……………………. days from the Contract Date (the “Registration Date”).
(c) The Seller must notify the Buyer in writing as soon as practicable after the Application has registered.
(d) Settlement of this Contract will be 21 days after the Seller notifies the Buyer that the Application has registered.
(e) If the Application is not registered by the Registration Date, then either party may terminate this Contract and the Deposit will be refunded in full to the Buyer.
(f) The Seller must act reasonably in relation to this special condition.
(g) The Buyer acknowledges that once the Application is registered, the volume and folio may differ from what is shown on the Contract at Contract Date and the Buyer agrees to make no objection or claim about this.

SALE BY EXECUTOR WHERE REGISTERED OWNER DIED WITHOUT A WILL

(Notes: To be used where deceased did not leave a will. Seller’s name on the contract is to be the personal representative applying for letters of administration.)

(a) The Buyer acknowledges that the registered owner of the Property died without leaving a will and that accordingly the Seller will need to apply for letters of administration to the relevant court.
(b) This Contract is conditional upon:
(i) The grant of letters of administration in favour of the Seller as personal representative of the registered owner(s) within ……………. months from the Contract date (“Letters of Administration Registration Date”); and
(ii) The registration of an Application to Register a Personal Representative (the “Application”) over the Property in favour of the Seller as personal representative of the registered owner(s) within 30 days from the Letters of Administration Registration Date (“Application Registration Date”).
(c) The Seller must notify the Buyer in writing as soon as practicable after the letters of administration have been granted and the Application has registered.
(d) Settlement of this Contract will be 30 days after the Seller notifies the Buyer that the Application has registered.
(e) If letters of administration are not granted by the Letters of Administration Registration Date or the Application is not registered by the Application Registration Date then either party may terminate this Contract and the Deposit will be refunded to the Buyer in full.
(f) The Seller must act reasonably in relation to this special condition.
(g) The Buyer acknowledges that once the Application is registered, the volume and folio may differ from what is shown on the Contract at Contract Date and the Buyer agrees to make no objection or claim about this.

PET APPROVAL

(a) This Contract is subject to and conditional upon the Buyer obtaining approval from the Body Corporate to keep their pet in the Property (“Pet Approval”), within ………. days of the date of this Contract (“Pet Approval Date”).
(b) The Buyer may give written notice to the Seller by 5pm on the Pet Approval Date that either:
(i) The Buyer has received Pet Approval and that the Contract is proceeding; or
(ii) The Buyer has not received Pet Approval and this Contract is at an end.
(c) If the Contract is terminated pursuant to subclause (b)(ii) above, then the Deposit shall be returned in full to the Buyer.
(d) If the Buyer fails to give written notice to the Seller in accordance with subclause (b) above, then the Seller may terminate this Contract, in which case the Deposit shall be returned in full to the Buyer.
(e) This special condition benefits the Buyer and accordingly the Seller’s right to terminate is subject to the Buyer’s continuing right to waive this special condition.
(f) The Buyer must act reasonably with respect to this special condition.

RELEASE OF DEPOSIT UPON GRANT OF EARLY POSSESSION

(a) If the Buyer requests and the Seller agrees to grant the Buyer early possession of the Property then the Buyer irrevocably authorises the Deposit Holder to release the Deposit to the Seller.
(b) The release of the Deposit will be non-refundable except where the Seller defaults by not completing the Contract.

NON-REFUNDABLE PAYMENT

(a) In the event in which the Buyer rescinds this contract in accordance with
the provisions of clause 21 for any reason other than the default of the Seller, the
Buyer must pay to the Seller the Non-Refundable Payment and irrevocably authorises and directs the Deposit Holder to release the Non-Refundable Payment to the Seller from any Deposit held.
(b) In this special condition, Non-Refundable Payment means $.....................

AIR-CONDITIONING GOOD WORKING ORDER

(a) The Seller warrants that all air-conditioners in the property shall be in good working on the date of completion.
(b) The parties agree that if the air-conditioners are not in good working order at the date of completion then the Buyer is entitled to deduct the estimated costs of repairs from the balance price payable at completion.
(c) The estimated costs of repairs are to be calculated by reference to a quote from an appropriately qualified tradesperson organised by the Seller, or where that amount is not acceptable to the Buyer, then the average of two quotes, with each party organising one quote each.

SELLER TO SERVE NOTICE TO PERIODIC TENANTS UPON UNCONDITIONAL CONTRACT

(a) The Buyer and Seller acknowledge that there are tenants with a current periodic lease on the Property but the property is sold with vacant possession at settlement.
(b) The Seller must serve the appropriate notice to the Tenants to vacate the Property (the “Notice to Vacate”) within 5 business days after the Contract is no longer conditional upon any conditions benefitting the Buyer.
(c) The Seller must notify the Buyer within 2 business days of the Seller serving the Notice to Vacate.
(d) The date for completion shall be 65 days from satisfaction of subclause (b) of this special condition.
(e) This special condition is for the benefit of the Buyer and only the Buyer may waive the benefit of this special condition.