Clauses - Inspections / Enquiries
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Fill The Buyers can arrange for an engineer to conduct a soil test on the property by 5.00pm on ___/___/___. The Buyers can cancel this contract before 5.00pm on that date, if the Buyers have received a written report from the engineer that the land has been filled, and are not satisfied with that report, and have given a copy of that report to the Sellers. (NOTES: This clause protects the Buyers if there has been fill on the land. The time limits are strict, so the Buyers must act promptly. Also, the Buyers must actually receive a written report, and give a copy of that report to the Sellers. ) |
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Rock The Buyers can arrange for an engineer to conduct a soil test on the property by 5.00pm on ___/___/___. The Buyers can cancel this contract before 5.00pm on that date, if the Buyers have received a written report from the engineer that the land has rock within _ _ _ _ _ _ metres of the surface, and the Buyers are not satisfied with that report, and the Buyers have given a copy of that report to the Sellers. (NOTES: This clause protects the Buyers if there is sub-surface rock within a certain depth of the surface. The time limits are strict, so the Buyers must act promptly. Also, the Buyers must actually receive a written report, and give a copy of that report to the Sellers.) |
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Soil classification The Buyers can arrange for an engineer to conduct a soil test on the property by 5.00pm on ___/___/___. The Buyers can cancel this contract before 5.00pm on that date, if the Buyers have received a written report from the engineer that the soil is not classified _ _ _ _ _ _ _ , and have given a copy of that report to the Sellers. (NOTES: This clause covers "soil type" … and is useful because soil type affects foundation costs. To complete this clause, the Buyers will need to know what soil “types” are satisfactory to them. This is information that may be available from builders.) |
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Flooding If the Buyers contact Council and are advised that the Property is affected by flooding or drainage problems, then before 5.00pm on ___ / ___ / ___ the Buyers can give notice to the Sellers cancelling this contract. (NOTES: It is usually difficult to obtain a written report about flooding within a short time. It is often possible to obtain verbal advice about major flooding by telephoning the Council. Therefore, this clause has been drafted so verbal advice of flooding is enough to allow the Buyers to cancel the contract). |
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Roads If the Buyers contact the Council or the Government Office (eg "Main Roads Department") and are advised that the Property is or is likely to be affected by a current or future road proposal, then before 5.00pm on ___ / ___ / ___ the Buyers can give notice to the Sellers cancelling this contract. (NOTES: It is usually difficult to obtain a written report about road proposals within a short time. It is sometimes easier to call the government departments concerned, and it is often wise to attend the Council office and inspect relevant plans. This clause has been drafted so that the contract can be cancelled without the Buyer first having a written report about road proposals). |
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Easements If the Buyers obtain copies of easements affecting the Property, and the terms of those easements are not to the Buyer's satisfaction, then before 5.00pm on ___/___/___ the Buyers can give notice to the Sellers cancelling this Contract. (NOTES: This clause allows the Buyers a chance to get copies of easements XE "easements" , and check them. It allows the Buyers to cancel if the Buyers aren’t satisfied HOWEVER the Buyers do have to actually obtain copies of the easements, and the time limit can’t be missed.) |
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Sewerage If the Buyers obtain copies of Council sewerage plans affecting the Property, and those plans are not to the Buyers' satisfaction, then up to 5.00pm on ___/___/___ the Buyers can give notice to the Sellers cancelling this Contract. (NOTES: This allows the Buyers time to obtain copies of sewerage XE "sewerage" plans, and check them out. The Buyers have to actually obtain the plans. The Buyers can then cancel if not satisfied with the plans - provided they do so within the time limit.) |
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All searches (written) If the Buyers obtain written search results from any Council or Government authority and are not satisfied with the results, then up to 5.00pm on ___/___/___ the Buyers can give notice to the Sellers cancelling this Contract. (NOTES: This clause is reasonably wide, and in favour of the Buyers. If a contract is cancelled relying on this clause, it would be difficult for the Sellers to establish that the contract was cancelled for the wrong reasons.) |
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"Due Diligence" The Buyers may thoroughly investigate the property (eg inspect the property, test the property, and contact Council, Government, neighbouring owners, builders, architects, engineers, lenders, valuers, or other service providers). If the Buyers are not satisfied (at the Buyer’s discretion) prior to 5.00pm on ___/___/___, the Buyers can before that time give notice to the Sellers cancelling this Contract. (NOTES: So called “Due Diligence” clauses allow Buyers to cancel for any reason whatsoever. There are many variations to “Due Diligence” clauses, and most solicitors have their own opinion about what should be included. Typically, a “Due Diligence” clause might allow the Buyers to take samples, obtain plans, do a thorough inspection, etc. These types of clauses can run for several pages by themselves. We have drafted a very abbreviated clause, which contains the essence of a “Due Diligence” clause - namely, that the Buyers can cancel for any reason whatsoever up to the time limit in the clause.) |
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Building Costs The Buyers can arrange for a registered builder to inspect the Property by 5.00pm on ___/___/___. The Buyers can cancel this contract before 5.00pm on that date, if the builder's recommendations or cost estimates are not to the Buyer's satisfaction. (NOTES: Buyers of vacant land are often worried about the building costs that will be incurred for the block they like. Some Buyers may seek to protect themselves, by having the ability to check with their Builder (or Architect) about the costs of building in that location. This condition does not permit a soil test. This condition does not require the Buyers to obtain written reports from the builder - and so the condition is not very 'tough' on Buyers.) |
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Architect's inspection The Buyers can arrange for an architect to inspect the property by 5.00pm on ___/___/___. The Buyers can cancel this contract before 5.00pm on that date, if the architect's recommendations or cost estimates are not to the Buyer's satisfaction. (NOTES: This clause might be useful for vacant land, or where a house is to be refurbished. This condition does not require the Buyers to obtain written recommendations or estimates from the architect - and so the condition is not very 'tough' on Buyers.) |
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Property history (eg ghosts) The Buyers may investigate the history of the Property and if not satisfied (at the Buyers' discretion) the Buyers can give notice to the Sellers before 5.00pm on ___/___/___ cancelling this Contract. (NOTES: We had some buyers once, who wanted to check out whether anyone had died in the property, before they bought it. They had previously purchased a property where someone had been murdered, and only found out later - they weren’t impressed.) |
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Neighbouring Park The Buyers may investigate the intentions of the owners of the neighbouring parkland, and if not satisfied (at the Buyers' discretion) the Buyers can give notice to the Sellers before 5.00pm on ___/___/___ cancelling this Contract. (NOTES: Buyers are sometimes very anxious about losing neighbouring parkland.) |
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Future granny flat The Buyers propose to contact Council about constructing a granny flat on the Property. If the Buyers are not satisfied with their enquiries (at the Buyers' discretion) the Buyers can give notice to the Sellers before 5.00pm on ___/___/___ cancelling this Contract. (NOTES: This clause might be used by Buyers who want to double-check that they can build a granny flat, before they go ahead with the purchase.) |
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Future pool The Buyers propose to conduct enquiries directed at constructing a swimming pool on the Property. If the Buyers are not satisfied with their enquiries (at the Buyers' discretion) the Buyers can give notice to the Sellers before 5.00pm on ___/___/___ cancelling this Contract. (NOTES: Whether or not a swimming pool can be built isn’t always straightforward. Not only do you need the size, you also need the land to be free from underground pipes or wires, and you also need access for machinery. This clause is very wide, and predicts any number of "enquiries".) |
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Other test (eg divining) The Buyers can arrange for testing of the property in the following way: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _. If the Buyers are not satisfied with the tests (at the Buyers' discretion) the Buyers can give notice to the Sellers before 5.00pm on ___/___/___ cancelling this Contract. (NOTES: Some Buyers may have unusual tests. Examples could be: checking for radiation from power lines, or checking for allergies. On the other hand, this clause gives the Buyers an “easy way out” and Sellers should be reluctant to agree.) |
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