Contents

Measuring only (eg for curtains, or builder's quotes)

Garage only - prior to settlement

Early occupation for buyer

Sellers rent-free occupation after settlement

Sellers lease-back as a display home

Measuring only (eg for curtains, or builder's quotes)

The Buyers may after 9.00am on ___/___/___ enter the property (once) to measure the property and obtain quotes.  The Buyers may enter with proposed contractors.  The Buyers must not damage or in any way alter the Property.  This right of entry is in addition to those in the standard 'Terms of Contract'.

(NOTES: The standard terms of contract include rights to enter, for example, for the Building and Pest inspections, for valuation for finance, and pre-settlement inspection.  This is an additional right to enter.)

Garage only - prior to settlement

The Buyers can from 9.00am on ___/___/___ use the garage on the Property to store the Buyers' belongings, at the Buyers' risk, rent free.  The ‘early occupation’ terms of this Contract apply (but only to the area of the garage).

(NOTES: The issues are ¾ what if the Buyers' belongings are stolen ? What if they are damaged by water etc ? The Buyers will be taking these risks.)

Early occupation for buyer

The Buyers can occupy the Property from 9.00am on ___/___/___, according to the terms of this Contract, without paying rent.

(NOTES: The Standard Conditions of Contract already have clauses about caring for the property, insurance, etc.)

Sellers rent-free occupation after settlement

The Sellers may remain in the Property for a period of up to _ _ _ _ _ _ _ _ _ _ _ _ weeks after Settlement, without being liable to pay any rent. The Sellers must maintain the Property in the same condition as at Settlement. The Sellers must thoroughly clean the Property when vacating the Property. The Sellers’ possession is under a licence personal to the Sellers, and is not a relationship of Landlord and Tenant. The Sellers indemnify the Buyers against any expense or damages incurred by the Buyers as a result of the Sellers’ occupation of the Property.

(NOTES: There are good reasons for Buyers to object to Sellers’ remaining in the Property after settlement.  On the other hand, some Buyers may agree to a clause like this - for example, where the property is a ‘bargain’.  This clause does not provide for rent … and does not create the same rights in favour of Sellers or Buyers as a residential tenancy agreement would.  If rent is to be paid, then the interests of the Buyers and Sellers may be better served by: (a) a full condition report, and (b) a residential tenancy agreement on commercial terms - including a Bond paid by the Sellers.)

Sellers lease-back as a display home

The Seller and Buyers agree that the Buyers will lease the property to the Seller on the following terms and conditions:

The Buyers shall be the Landlord and the Seller shall be the Tenant.

(a) The term shall be for  _ _ _ _ _ _ _ _ _ _ _ _  months, commencing on the Date of Settlement of this Contract.

(b) The whole of the Property shall be leased to the Tenant.

(c) The rent shall be equal to  _ _ _ _ _ _ _ _ _ _ _ _  % of the Purchase Price (as described in this Contract) per year,  payable in monthly instalments in advance.

(d) There shall be no reviews of the rent during the term of the lease.

(e) The permitted use under the lease shall be ‘Display Home’.

(f) The Tenant shall be responsible for taking out public liability insurance in the sum of $10,000,000.00.

(g) The Tenant shall be responsible for taking out insurance over the improvements on the Property, to their full replacement value.

(h) There shall be no option to renew the lease.

(i) The other terms and conditions of the lease shall be those included in the ‘standard’ lease of commercial premises as contained in “The Law Office Guide” as published by the Queensland Law Society where applicable to the Property (called the “Usual Terms”). In the case of any inconsistency between the terms of this Contract and the Usual Terms, the terms of this Contract shall prevail.

(j) The Seller shall prepare the lease and execute the lease and deliver same to the Buyers for execution, prior to the Settlement Date.

(k) The Buyers shall execute and return the lease to the Seller within 14 days of receipt of same.

(l) The Seller shall be responsible for paying stamp duty on the lease (but not on this Contract).

(m) The parties acknowledge that this is intended to be a legally binding agreement to lease, and the parties have set out above and thereby agreed all essential terms and conditions of the lease, to be entered into in the manner described above.

(NOTES: A “perfect” lease-back clause would have attached to the contract the actual lease agreement to be signed. Anything less than this is a compromise, and increases the risk to settlement - and may even make the contract uncertain.  The clause here is compromised because of this ... and if the opportunity allows a solicitor should draw the lease agreement and these should be attached to the contract.)