Conveyancing Report on Contract of Sales Issue

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Today, we provided a report to one of our clients regarding a property issue discovered before settlement.

During the pre-settlement inspection, the client found that the Air Conditioning Unit was not working, with an estimated repair cost of approximately $2,500. She sought our advice on how to resolve this matter. The property is located in Melbourne.

After reviewing the relevant clauses in the Vendor Statement, Contract of Sale, and General Conditions, we found that both the Vendor Statement and Contract of Sale were silent on the Air Conditioning Unit, with no specific references to it. However, Clause 24 of the General Conditions addresses property damage before settlement. Specifically, Clause 24.1 states:

“The vendor carries the risk of loss or damage to the property until settlement.”

Based on this, the Vendor is responsible for repairing or replacing the faulty Air Conditioning Unit. If the Vendor fails to fulfill this obligation, Clause 24.3 states:

“The purchaser must not delay settlement because one or more of the goods is not in the condition required by General Condition 24.2, but may claim compensation from the vendor after settlement.”

This means the Purchaser cannot delay settlement but can seek compensation after settlement. The General Conditions outline two possible approaches:

  1. Withholding Funds (Clause 24.4)
    • The Purchaser may nominate an amount (up to $5,000) to be held by an appointed stakeholder if the property does not meet the required condition at settlement.
    • The Vendor and Purchaser negotiate an amount to be withheld by the Purchaser’s Conveyancer to cover the repair or replacement costs, with any remaining funds returned to the Vendor.
  2. Legal Action (Clause 25 – Breach of Contract)
    • The Purchaser may initiate legal action against the Vendor for breach of contract.
    • This would involve submitting a Complaint to the VIC Magistrates’ Court.

We presented these three options to our client, outlining the potential risks associated with each. She was very satisfied with the report, and ultimately, we successfully negotiated an agreement with the Vendor to fix the Air Conditioning Unit before settlement.


今天,我们向一位客户提供了一份关于房产交割前问题的报告。

在交割前验房时,客户发现空调设备无法正常工作,维修报价约为 $2,500,并向我们咨询如何解决此问题。该房产位于墨尔本

在审查卖方声明(Vendor Statement)、买卖合同(Contract of Sale)和一般条款(General Conditions)中的相关条款后,我们发现卖方声明和买卖合同均未提及空调设备,也没有任何相关条款。然而,一般条款第 24 条明确规定了交割前房产损坏的责任。其中,第 24.1 条指出:

“卖方在交割前承担房产的损失或损坏风险。”

因此,卖方有责任修复或更换故障的空调设备。如果卖方未能履行该义务,第 24.3 条规定:

“如果部分物品未达到一般条款 24.2 规定的条件,买方不得因此推迟交割,但可以在交割后向卖方索赔。”

这意味着买方不能推迟交割,但可以在交割后寻求赔偿。一般条款提供了两种解决方案:

  1. 扣留部分款项(第 24.4 条)
    • 如果房产在交割时未达到一般条款 24.2 规定的条件,买方可以指定最多**$5,000** 的金额,由指定的第三方托管。
    • 买卖双方可协商一个扣留金额,由**买方的产权律师(Conveyancer)**保管,以用于维修或更换空调设备,剩余款项归还卖方。
  2. 法律诉讼(第 25 条 – 违约)
    • 买方可以向卖方提起违约诉讼
    • 这将涉及向**维州地方法院(VIC Magistrates’ Court)**提交投诉(Complaint)。

我们向客户详细介绍了这三种方案,并分析了各自的潜在风险。客户对我们的报告非常满意,最终,我们成功与卖方达成协议,由卖方在交割前修复空调设备

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