Legal Obligations
Introduction
As the seller you could be liable to pay money or damages if you breach any of the terms in the Sale and Purchase Agreement. Remember, All terms are not always written down. Here are some examples of possible breaches to watch out for!
Changing your mind!
If you suddenly change your mind about selling the property after the agreement is signed, the buyer can claim losses and even ask the court to enforce the sale!
Misleading information
Giving the buyer false or misleading information about a property can lead to breach of contract, even if you honestly believed the information was correct. Information can be givin verbally or in writing. If you are unsure about a question, its best to just say you dont know. A good example of misleading info would be saying 'the house has just been repiled' when only a couple were replaced. you could be looking at the cost of repiling the whole house. ouch!
Fixtures and chattels
If the buyer discovers that something is damaged or not working before settlement, he or she can claim the costs of repair or replacement from the seller. The buyer has a right to inspect the property before settlement for this purpose.
Local Council requirements
The buyer must be informed of any outstanding requirements imposed by the council eg. The drains must be altered to meet new by-laws.
A standard Sale and Purchase agreement warranties a promise from the seller to the effect that the vendor has no knowledge of any requirements by the council and that all building permits have been obtained and complied with.
Tenants
If your house is tenanted, it is your requirement to give the tenants written notice your property is on the market. With prior consent of the tenants you may show it to prospective buyers or to a registered valuer at any reasonable time.
If the property is sold you must give the tenants written notice with details of the new owners name and contact address
If the tenants must be vacated due to the requirements the sales and purchase agreement requires a vacant possession, the tenants must be given 42 days notice.