If the house is to be purchased for a special purpose (for example, as premises for the running of a small business), any consent required from a statutory authority or local council should be set out as a special condition of the contract.
Often a home buyer must sell an existing home so that there will be sufficient funds to buy the new one. The sale of the purchaser's home is therefore a condition of the contract. Sufficient time must be allowed for this sale and its settlement when setting the date of settlement of the house being purchased.
Obtaining first, and sometimes second, mortgage finance is usually another important condition of the sale. The contract should accurately set out the terms that the purchaser requires, so that the purchaser is protected if, for example, the purchaser's home is not sold or the necessary finance is not obtained. These clauses should never be omitted from the contract and a purchaser should be very wary of any pressure from a vendor or land agent to the effect that an unconditional contract is required. Without the safeguard of these special conditions, the purchaser might be forced to purchase the home on temporary finance or bridging finance (with exorbitant interest charges) while still trying to sell his or her first home, or be forced to sell it at a much reduced price.
Assurances and confident assertions that money is easily obtainable or that the existing home will be readily sold should be ignored and legal advice should be sought.
A purchaser must make 'every reasonable endeavour' to fulfil any special condition. If unsuccessful the contract may be brought to an end by sending a notice to the vendor. The agent has no authority to refund the deposit, it must be authorised by the vendor. A purchaser can be asked to prove that reasonable efforts were made to fulfil a special condition.
If there is any understanding between the purchaser and the vendor that, before the date of settlement, certain work will be done, for example, rubbish removed or other matters undertaken in relation to the house, this should be clearly set out as a further special condition of the contract. If it seems the work will not be completed by settlement contact the agent and broker for advice. Even after settlement the work will have to be done, however, some action should be taken when it appears there may be delays or it may not be done.
Verbal statements or promises made in respect of work to be done and other such matters may not be enforceable.