To assist our review, please provide us with any additional information and/or documentation, e.g.

if the
purchase is to be made on behalf of an SMSF. Here is an example:

Section Item Comment Action

Contract Appears to be recently superceded September 2014 version
(current version is August 2016, just released), draft only,
however the changes are minor.
Cooling Off Please note that the 3 day cooling off period does not apply if
you buy the property at or within 3 business days of a
publicly listed auction.
Particulars of Subject to Disclosed RTA lease commencing 8 August 2016 for 6 Before proceeding
sale lease months to 7 February 2017. Subject to the settlement further, we suggest
date – which may go beyond this date - your client has a you write to the
number of options if they wish to proceed – Vendor’s
representatives,
• Vacant Possession. In our opinion this is usually to seeking further
be preferred, as it requires the Vendor to deal with information as to the
their tenant & give notice to vacate, damage, bond, status of the tenancy
getting the tenant out, etc. and the tenant’s
• Subject to Lease with a special condition regarding intentions.
notice. Request a special condition giving the Purchaser
the right to request the Vendor immediately serve a
notice to vacate. Ideally, the settlement date should
therefore be at least 1 day after the vacation date (or
more) if the Purchaser wants the flexibility to request
effectively vacant possession.
• Subject to Lease (status quo). The Purchaser can
still request the Vendor serve a notice to vacate,
although the Vendor need not comply. Once settled,
the Purchaser can then decide if/when they wish the
Tenant to vacate. The Purchaser will need to deal with
giving notice to vacate, damage, bond, getting the tenant
out, etc.
Particulars of Subject to Subject to loan approval?
sale finance
If an SMSF, most SMSF lenders (especially BOM) usually take
6-8 weeks from application to loan approval for SMSFs, in
part because of the time involved in vetting trust deeds. If
the contract contains a loan approval date deadline the
purchaser will need to take all reasonable steps to facilitate
the loan approval in a timely fashion. If the loan is not
approved by the deadline, you will need to advise the vendor
in writing accordingly and/or seek an extension. If you do
nothing, the clause lapses and the contract becomes
otherwise unconditional.
General Standard GC As modified by special conditions.
Conditions 1 to 28
Special These appear to have been drawn in an attempt to shift where
Conditions possible much of the onus from vendor to purchaser, whilst
attempting to shift where possible any benefit to the vendor.
We assume they are part of the Vendor’s solicitor’s standard
sale contract conditions, and are unlikely to be
deleted/amended in any significant way.
SC 16. GC 25 A most unusual amendment of a key general Before proceeding
General Breach by condition, and the changes are non-standard and significant. further, we suggest you
Conditions Vendor It alters the balance of remedies for breach between the write to the Vendor’s
amendments parties. Why would a Purchaser agree that the Vendor is not representatives, seeking
 prima-facie liable for any damages, costs or interest either: further
whatsoever or howsoever arising? This appears to give the information; and re-
Vendor carte blanche as to its conduct. Whilst deletion of instatement of GC 25.
this clause might be struck out, read down or against the We suggest the SC
Vendor as it was drafted for it, this would require the simply be crossed out
Purchaser to go to Court to test it. and initialled as part
of an offer.
SC 16. GC 28.4(a) A most unusual amendment of a key general Before proceeding
General Equitable condition, and the changes are non-standard and significant. further, we suggest you
Conditions charge by write to the Vendor’s
amendments Vendor to Why would a Purchaser agree that the Vendor is given an representatives, seeking
secure (ongoing) equitable charge over any property of the either: further
deposit Purchaser as added security for the deposit? It is arguable information; and
that this would only apply where the 10% deposit has not deletion of this
been paid over. amendment to GC
28.4(a). We suggest
the SC simply be
crossed out and
initialled as part of an
offer.
Vendor’s Appears to be current October 2014 version, draft only.
Section 32 Purchaser has a right to rescind the contract if the vendor
Statement provides false or inadequate information (Section 32 K).
Searches and Title Search – Most certificates were provided to allow verification of
Certificates October 2016 information contained in the Vendor’s Section 32 Statement.
Certificates /
Reports – No formal Planning Certificate has been provided and we are
October 2016 therefore unable to comment further on those matters at
this time. Certificates should be ordered if property is
purchased – new rating year.
Property Zones – The current zoning allows the subject property to be used as a
Report General residence. If a multi-unit development of the site is proposed,
Residential. any other restrictions relating to unit development (number,
Overlays – etc.) may be contained in the applicable planning controls
Design & contained in the schedules to the General Residential Zone
Development. and Design & Development Overlay. We suggest you review
Other – those controls – a copy should be available through Council
None. or on their website.
Water Encumbrance Refers to an encumbrance under Section 158(4) of the Water Before proceeding
Certificate Act 1989 as follows: further, we suggest
you write to the
“This Property is part of a development that is serviced by Vendor’s
private water and/or sewer infrastructure. This infrastructure representatives,
(or pipeline) is known as a private extension ... maintenance or seeking further
supply issues ... are the responsibility of the property owners.” information as to any
exclusions (e.g.
You should nevertheless be aware of the possible impact (if flood?) under the OC
any) of this relatively standard encumbrance (which has been policy.
disclosed by the Vendor in the Water certificate attached to
the Contract and will be signed off by the Purchaser), and
about which you can do nothing in any practical sense. You
should also be aware that this encumbrance may potentially
have an adverse impact on both your ability to obtain finance
and also obtain full (as opposed to limited) insurance cover.
However, we note that the Owners Corporation has obtained,
and maintains, full insurance cover.
Owners Repairs & Special levies may be raised to cover these items. These are Before proceeding
Corporation maintenance prima-facie the purchaser’s responsibility where raised after further, we suggest
Certificate the date of sale. you write to the
Item 5. Vendor’s
representatives,
seeking further
information as to
likely costs.
Owners Insurance Usually, the Owners Corporation or service company insures The purchaser will
Corporation cover the buildings (but not the contents) and this insurance can be need to ensure that
Certificate relied upon, once it has been ascertained by you to be in addition to
Item 6. adequate. Rather than taking out separate insurance, a contents insurance, it
purchaser is usually entitled to request the Owners also takes out
Corporation insurer to issue such a certificate of insurance for separate public
the unit being purchased. However, as no copy of the liability insurance
insurance certificate has been provided, it is unclear whether covering the Unit &
or not Owners Corporation public liability cover extends to any associated Car
the personal liability of members within the units. However, Park space.
Item – Insurance of the AGM Minutes dated 5/2/2014 states:

“Owners Corporation insurance DOES NOT cover

contents or personal Legal Liability inside the Units. Each
owner should have Contents Insurance that includes personal
Legal Liability.”
Land Tax Apparently owner occupied - currently not assessable on a
Certificate single holding basis in the 2016 year.