Conditions in Contract of Sale

Hello,
We are in process of buying a house and settlement is soon due. When signing the contract we put few conditions regarding cleaning and house repairs. Today we inspected the house and nothing has been fixed.
I have raised all this to my Conveyancer. I just want to know in case vendor do not honour the conditions then what are my options. I have already inform landlord about tenancy termination, mover and cleaning is also scheduled therefore i would not like to delay settlement.

PS: I am going to discuss with my Conveyancer but i want to hear people's experiences.

Comments

  •  

    When signing the contract we put few conditions regarding cleaning and house repairs.

    Typically a (None brand new) house is sold as-is, unless the owner damaged the place vs initial inspections. So I don't think the owner will fix up anything that was already wore or broken, so I'm not sure what you were expecting the owner would do, despite you "fix it up" clause/conditionals you may have included. Shouldn't your Conveyancer already told you this? Maybe we've missed something not in your post.

    For a brand new place, there is usually some warranty by the builders.

    Just seems odd what you've included and asked (if not a brand new property).

    •  

      There is a section in contract of sale where buyer write the conditions. It is signed by both buyer and seller. Example : One door is broken and i want it to be fixed. The seller negotiated the price base on the conditions I mentioned.

    •  

      Typically a (None brand new) house is sold as-is

      Unless conditions are added to the contract as the OP did.

      So I don't think the owner will fix up anything that was already wore or broken, so I'm not sure what you were expecting the owner would do

      The OP is expecting the owner to do what they agreed and signed as part of the contract.

      Just seems odd what you've included and asked

      Not at all, a family member purchased a used place and the pool was broken. Part of the contract was for them to fix the pool.

      Honestly its smart to put a line in saying the place should be cleaned. I've seen some places left in shocking conditions. Including my PPOR at hand over!

  • +1 vote

    You would look at the contract and see if there is a penalty clause other than breach of the entire contract (which may be inconvenient for you).

  • +5 votes

    Sometimes, if items were listed in the contract but aren't complete, your conveyencer can negotiate a financial settlement. Many owners prefer to pay that way on settlement than to actually complete any works.

    •  

      Thanks. In this case who estimate the cost of the work?

      •  

        You just pick a number and start the negotiation. Think of it as haggling.

      •  

        The conveyancer should have put a dollar amount in the contract against each and every clause you put in there requiring some kind of a fix in case the seller defaults on it.

  •  

    Are the fix items minor or major? Are you living in anyway? What do you expect, Money?

    • +1 vote

      I just want the conditions to be honoured. At the time of negotiation the price went up because of conditions

      • +3 votes

        Ok, then if they don't do the conditions, you can get your conveyancer to negotiate a financial reduction equal to the increase.

  • +2 votes

    In short, you can't enforce these conditions unless you have a penalty condition attached, which I guess you haven't, otherwise you would have mentioned it .

    The seller however can stop the sale with very little effort and consequences on them.

    Be careful what you go chasing, you might get bitten.

    •  

      I am just trying to chase what was agreed and written. There is a broken door for example and we mentioned that this need to be fixed etc.

      • +2 votes

        If that's the extent of your things that need to be fixed, they aren't going to be fixed and you can't do anything about it .

        If you delay the payment, YOU will be in breech and YOU will be paying costs .

        Your solicitor will confirm the above

  •  

    I'm not sure why people are saying there is nothing you can do. You have a contract, and the vendor is required to comply with the conditions in order to execute the contract. You can refuse to settle until they have met the conditions, or you can negotiate a financial settlement instead.

    Important part is to understand what you want and what you are prepared to do to enforce your rights. The vendor won't want the contract to fall apart (because if it is their fault, they will still need to pay the Real Estate Commissions, and you get the deposit back), so there is incentive for it to go ahead.

    If you don't want to delay settlement, then you need to work on a cash settlement of the condition instead. If you really want to see everything fixed by the vendor, then say you won't settle until they are done. Don't get too hung up on little things like cleaning however; not work the stress if that's all there is.

    I note an earlier comment about houses being bought 'as-is'. This is true, but NOT when there are specific conditions in the contract. Work with with solicitor or conveyancer for the best advice on how to move this forward.

    Good Luck.

    •  

      This is theoretically correct, but actually very very wrong.

      OP - ask your soli then post back here, so you can educate everyone on this forum.

      •  

        I have asked them and I will share when i get their response.

    •  

      You are wrong CJ, please look up breach of condition vs breach of a warranty. Buyer defaulting on final payment upon settlement is breach of condition and contract can be rescinded and the seller can keep full deposit. However, seller not fixing a door in the property would be a breach of warranty not going to the root of the contract….. and at best you may get a $ compensation.

      •  

        I'm no lawyer (obviously), but I would argue that a 'Condition of Sale' is in fact a Condition, not a warranty. "A requirement or event that should be performed before the completion of another action", with the other action being settlement of the property. Either way I don't care too much. This is Ozbargain, so ask your solicitor ;-)

        •  

          Unfortunately your argument would fail in 1 second flat. Irrespective of what it is called in the contract, in the sale of a property a "non fixed door" does not allow the Buyer to rescind the contract.

          •  

            @Logical: True, but I never suggested that OP could (or would want to) rescind. I suggested that they do not settle until such time that the conditions were met (or suitable compensation was agreed).

            •  

              @cjbowden: If they don't settle on the date of settlement (because of a non fixed door) then they forfeit their deposit and contract is terminated.

  • +1 vote

    Just to update everyone, As per conveyancer the vendor has to full fill special conditions. In case if it does not happen a dollar value can be on put on hold in agent trust account which will be release upon confirmation of the work done.

    • +1 vote

      Just note that enforcing a fix by an unwilling seller will result in a quick/dodgy fix. Take the discount if not repaired by settlement date and fix it yourself.