Property in same condition at day of sale

General condition 31.2 of a Contract of Sale states that the Vendor must deliver the property to the Purchaser at settlement in the same condition it was in on the day of sale, except for fair wear and tear.

For example, if the property has marks on the walls or spots on the carpet or appliances that did not work when you first inspected, then the Vendor has no obligation to clean the property or fix the appliances, unless there is a special condition to do that.

If the property has been damaged between the signing of a contract of sale and the settlement date, or if an item is not in working order as it was in on the day of sale, inform your legal representative immediately of the type and cause of damage.

For example, if on the day of sale, the air conditioning system was in working order but then when you attend your final inspection you find that the air conditioning system is no longer in working order, then the Vendor has an obligation to repair the air conditioning system. 

During the final inspection you should check that:

1.          All goods specified in the contract remain;

2.          No fixtures have been removed;

3.          The property has not been damaged; and

4.          All appliances are in working order as they were in at the day of sale.

If the property has been damaged or if an appliance is not in working order, a purchaser may either:

5.          Seek compensation from the vendor after settlement; or

6.          Nominate an amount not exceeding $5,000.00 to be held by a stakeholder to be appointed by the parties (conditions apply).

It is important to note that a purchaser cannot delay settlement because one or more of the goods is not in the same condition as it was in on the day of sale.

Whether you are selling or purchasing the property, obtaining or maintaining insurance on the property and its building/s is a must.

Keep in mind that all Contracts of Sale are different. Having our firm read the Contract and provide you with advice is important. If you are considering buying or selling, please contact our office on (03) 9707 1155 or admin@wslegal.com.au.