A Special Condition Settlement Prior Sale has become quite common in real property transactions. This is where the Buyer of a property is relying on the proceeds of the sale of another property to complete the contracted transaction.
The Seller may not agree to this condition and it will depend upon several factors that each party will need to discuss with their Real Estate Agent prior to signing the contract.
You should always consider your financial position prior to executing a purchase contract. A good guide for financial matters can be found on the Australian Government website here.
This clause should be used in conjunction with legal advice pertinent to your situation so if you have any questions regarding your particular circumstances you can contact us here.
Prior Sale – Settlement
(1) This Contract is subject to and conditional upon the successful Settlement of the Buyer’s property located at ____________________________________ on or before the Settlement Date of this Contract.
(2) Should the Buyer’s property fail to settle in accordance with (1) of this Condition, either party may by written notice to the other or their solicitor, terminate this contract with the Deposit paid to be refunded to the Buyer in full.
(3) This condition is for the benefit of the Buyer and they may waive its benefit by written notice to the Seller or their solicitor at any time prior to settlement.
