Land contract special conditions for sellers

 In Commercial & Property, News
Land contract special conditions for sellers Johnston Withers Lawyers

While sellers may use their best efforts to achieve project milestones by certain timeframes, there are always risks and unforeseen circumstances.

There are a range of special conditions that we can prepare for sale land contracts that give sellers flexibility if things don’t go to plan. We regularly prepare sale of land contracts with the following conditions:

Finance

This is for the benefit of sellers who are relying on funding from a third party financier to complete a development project.

Pre-sale Commitment

To ensure there are sufficient funds and commitment towards a development project, some sellers require them to get a minimum amount of pre-sales before proceeding with a development.

Development Approval

Although sales transactions are typically between sellers and buyers, there exist certain government authorities who initially need to approve any proposed land division, amalgamation or constructions of building or dwellings.

Deposit of the Plan

This is required if the seller needs to first subdivide or amalgamate the land.

Practical Completion

This special condition is for off-the-plan contracts where the buyer is purchasing property that will first be built prior to completion by a developer seller. In these cases, it is important that the buyer understands what they are purchasing. To provide certainty to the buyer, we draft comprehensive special conditions and work with the seller to collate the plans and specifications of the proposed build.

Build Contract

Sellers offering house and land packages often require purchasers to enter into a build contract with specific design guidelines. The intention is for the properties within a development to be coordinated and have a certain standard of style.

FIRB Approval

Foreign persons generally need to apply to the Foreign Investment Review Board for approval to purchase residential real estate in Australia, which may take up to a total of 6 months. Adding this condition allows the seller to contract a buyer without breaching the foreign investment regime.

Registration of Title in Seller’s Name

This is particularly helpful for sellers who are not yet the legal owner of the property but do have a beneficial or equitable interest in the property. For example, if a record of death or transmission application is required, or if the seller has entered into a contract to purchase the property but not yet settled.

Johnston Withers Lawyers: We’re here to help!

When contracts are conditional on certain events occurring, it is important to spell out what actions need to be taken, who is responsible for undertaking these actions, who is bearing the costs of these and what the consequences are if the events are not achieved by a certain timeframe.

Johnston Withers Lawyers have extensive experience in preparing a range of special conditions for land contracts which are tailored to the needs and understanding of the parties involved. If you are a seller, developer, buyer or sales agent and require drafting assistance or advice, please contact Reyka Quiniones on (08) 8231 1110 or contact us.

Recent Posts