What are Conditions and how do they Operate?
Conditions are terms which are included in an Agreement for Sale and Purchase, which give the purchaser time to decide if that property is right for them, before they commit to the purchase. It is important to note that conditions are not ‘get out of jail free cards’ and that you must do your best to meet those conditions. It is equally as important to note that conditions should not be overlooked, as they often add valuable protection.
The ADLS Agreement for Sale and Purchase of Real Estate is the standard contract commonly used by lawyers, as it sets out the basic default rights and obligations of both parties. It also includes default conditions, which can be selected.
1. THE DEFAULT CONDITIONS – AKA GENERAL TERMS OF SALE
These are the conditions which are included in the Agreement by default , provided ‘yes’ is circled for each one of the front page.
2. EXTRA CONDITIONS – AKA FURTHER TERMS OF SALE
As with any contract, the parties have the contractual freedom to insert any clauses they wish into a contract. They may also vary or exclude any of the default conditions included in the standard conditions. Extra conditions commonly inserted into the Agreement include:
And the list can go on. There are
a multitude of different conditions which arise in a contract. Every scenario
is different and should be evaluated case by case. We therefore encourage
clients to discuss their property requirements with their lawyer at the outset,
to ensure the best level of protection is afforded and assist in making your
sale or purchase transaction as smooth as possible.
 These are the default conditions included in the ADLS Agreement for Sale and Purchase of Real Estate Tenth Edition, issued in late 2019. The default conditions included in earlier ADLS contracts may vary.
 While this condition may not be ‘new’ in its presence, it is a recent ‘default’ condition added to the ADLS Agreement for Sale and Purchase of Real Estate tenth edition.
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Article written by Tita Elliott.