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Some common clauses or conditions that can be inserted into the 'Further Terms of Sale' section of the Auckland District Law Society/REINZ form of Agreement for Sale and Purchase of Real Estate (Eighth Edition 2006).
Please remember that common clauses or conditions, such as below, can never be a substitute for proper legal advice.
You should seek legal advice if you have any doubt about the applicability or wording of any clause and while every care has been taken in drafting the clauses, every transaction is unique and [discount property(?) ] will not be liable to any person in any circumstances for any loss of any nature arising from the use or misuse of the common clauses.
Access For Subdivision
This agreement is conditional upon access being given to the purchaser between the date of signing this agreement and the settlement date for the purposes of commencing subdivision application for the property. The vendor agrees to assist with this process by signing any necessary documents to facilitate the subdivision process. All costs related to this process are to be borne entirely by the purchaser.
Vendor’s Solicitor’s Approval
This agreement is conditional upon the vendor’s solicitor’s approval.
Building Inspection
This agreement is conditional upon the Purchaser being satisfied within (6) working days of the date of this agreement with a builders report on the subject property. Should the Purchaser be dissatisfied with matters contained in the report then the purchaser must provide a copy of the report to the Vendor giving rise to the said defect(s). Upon receiving notice from the Purchaser of the said defect(s) the Vendor shall advise the Purchaser within (3) working days whether or not the Vendor is prepared to remedy the said defect(s). In the event of the Vendor agreeing to remedy to said defect(s) then the Vendor warrants the said defect(s) will be corrected prior to settlement in accordance with the local authority's requirements and at the Vendor's expense. If the Vendor fails to respond or advise the Purchaser within the said (3) days that the Vendor will not remedy the said defect(s) then the Purchaser shall be entitled at the Purchasers discretion by notice in writing to the Vendor to cancel this agreement. Failing the giving of such notice to the Vendor the Purchaser shall be deemed to have accepted such said defect(s).
Purchasers Approval
This agreement is conditional upon the purchaser approving all matters that the purchaser considers may concern or affect the property or the commercial viability of the transaction within 9 working days after satisfied of clause 00.0
Finance
This agreement is subject to the purchaser arranging finance on terms and conditions acceptable to the purchaser in its sole discretion 5pm on ________________________________________.(insert date).
Tenants Notice To Continue Tenancy
This agreement is conditional on the existing tenants giving written notice that they will continue to tenant the property and sign the enclosed New Tenancy agreement and inspection report prior to _____________________________(insert date).
Valuation
This agreement is entirely conditional upon the Purchaser obtaining and approving in the Purchaser's sole and subjective opinion a valuation within 7 complete working days after the date of the agreement. Should the Purchaser not approve the valuation then the Purchaser shall not be obliged to give any reason for it's disapproval to the Vendor. This condition is inserted for the sole benefit of the Purchaser.
Conditional on Purchaser Arranging Finance
This agreement is conditional upon the Purchaser arranging sufficient finance to complete the purchase from a source and on terms and conditions satisfactory to the Purchaser in its sole discretion, by the — day of .
This condition is inserted for the sole benefit of the Purchaser.
Solicitor’s Approval
This agreement is conditional upon the Purchaser’s solicitor’s approval of title, suitability of property, LIM and all resource management matters affecting the property within ___ working days from the date of this agreement.
This condition is inserted for the sole benefit of the Purchaser.
Sale of Purchaser’s Property
This Agreement is conditional upon the Purchaser negotiating a sale of the Purchaser’s property at [insert address] for such sum as the Purchaser shall accept which sale is to be declared unconditional not later than 5 pm on the day of 201 and is scheduled to be settled on or before possession date under this agreement.
This condition is inserted for the sole benefit of the Purchaser.
Existing Sale of Purchaser’s Property Becoming Unconditional
This Agreement is conditional on the existing signed Agreement for the sale of the
Purchaser’s property at [insert address] becoming unconditional on or before 5 pm
on the day of 201 .
This condition is inserted for the benefit of the Purchaser.
Expiry of Prior Agreement
This Agreement is conditional upon the existing Agreement for the sale of the
Vendor’s property not becoming unconditional by the day of
201 . The Vendor agrees not to grant any extension of time for the date for
satisfaction of any condition under the prior Agreement and to take all reasonable
steps to cancel or terminate the prior Agreement as soon as the Vendor is able to do so.
Due Diligence
The Vendor agrees that this Agreement is entirely conditional upon the Purchaser being
satisfied, in its sole discretion, by the [insert number of days] working day after the date the Purchaser was granted access to the property, after taking any professional advice or other advice from any person that the Purchaser considers appropriate, that the property, its title, the chattels and the financial and contractual terms of this Agreement are in all respects satisfactory to the Purchaser.
This clause is inserted for the sole benefit of the Purchaser.
Purchaser’s Enquiry
This agreement is conditional upon the Purchaser undertaking all and any enquiries,
investigations and assessments of the property and its surrounds that the Purchaser,
in the Purchaser’s absolute discretion, deems necessary. Such enquires may include
but not be limited to:
a title to the property;
b zoning of the property and its surrounds;
c development of the property;
d records of the local territorial authority;
e the suitability of the property for the purchasers needs;
f obtaining a satisfactory report from the Purchaser’s chosen Builder,
g records of the Body Corporate; or
h obtaining an unconditional offer of finance from the Purchaser’s chosen Bank or financial institution sufficient to complete the purchase of the property.
The Purchaser shall have until 5.00 pm on the 10th working day after the date of this
Agreement to communicate in writing to the Vendor or the Vendor’s solicitor that
this condition is fulfilled, or otherwise not fulfilled in which case the Purchaser may
elect to cancel this Agreement.
The Purchaser shall be under no obligation to disclose to the Vendor any reason if
the Purchaser shall determine that this condition cannot be fulfilled and that this
agreement is therefore at an end.
This condition is inserted for the sole benefit of the Purchaser.
Builder’s Inspection Clause
This agreement is conditional upon the Purchaser obtaining a report from a builder
or building certifier of the Purchaser’s choice in respect of all aspects relating to the
design, workmanship, weathertightness and soundness of the building erected on the
property not later than the day of 201
The Purchaser shall have until 5.00 pm on the 10th working day after the date of this
Agreement to communicate in writing to the Vendor or the Vendor’s solicitor that
this condition is fulfilled, or otherwise not fulfilled in which case the Purchaser may
elect to cancel this Agreement.
The Purchaser shall be under no obligation to disclose to the Vendor any reason if
the Purchaser shall determine that this condition cannot be fulfilled and that this
agreement is therefore at an end.
This condition is inserted for the sole benefit of the Purchaser.
Deposit Held Pending Settlement or Cancellation
Notwithstanding anything to the contrary herein, the stakeholder will retain the deposit in the stakeholder’s account until the earlier of:
- settlement completed, in which case the deposit will be released to the Vendor, or
- the Vendor or Purchaser (by virtue of the default the other as the case may be) becoming entitled to the deposit, in which case the deposit will be released to the party entitled to receive it.
If the stakeholder is unable to determine which party is entitled to receive the deposit, then the stakeholder will be entitled to retain the deposit pending either:
- the stakeholder determining to its satisfaction the person entitled to receive the deposit, or
- agreement between the parties as to entitlement to the deposit, or
- an order of the Court,
And the stakeholder will not be liable to either party for retaining the deposit pending any such event.
Interest earned on the deposit will follow the destination of the deposit.