Understanding General conditions

Allows the contract to be signed electronically, exchanged by email, and in counterparts. Parties agree electronic signatures are binding. 

If a proprietary limited company buys the property, the person who signs is personally liable if the company defaults. 

Vendor may require all directors of a company purchaser to personally guarantee performance of the contract. 

Purchaser may nominate another party to take transfer up to 14 days before settlement, but the original purchaser remains liable. 

Purchaser accepts disclosed encumbrances (excluding mortgages/caveats), crown conditions, and disclosed leases. Purchaser indemnifies vendor for post-settlement landlord obligations. 

Vendor warrants good title, capacity to sell, possession, no competing interests, and no undisclosed legal issues. Includes statutory building warranties if applicable. 

Errors in description or area do not invalidate the sale. Purchaser cannot claim compensation or force title amendments. 

Vendor gives no warranty about adequacy or condition of services. Purchaser must arrange and pay for connections after settlement. 

Vendor must obtain required consents to sell. If not obtained by settlement, the contract ends and money is refunded. 

Purchaser prepares transfer documents. Vendor initiates duties forms. Delivery of transfer is not acceptance of title. 

Vendor must ensure PPSA security interests over personal property (not land) are released or cleared at settlement, subject to exceptions. 

Vendor must provide any required domestic building insurance if requested in time. 

Deals with land not under Torrens title. Sets out title proof, inspection rights, objections, and termination rights. 

Sets where deposit is paid, how it is held, payment methods, trust requirements, and rules for off-the-plan deposits. 

Allows use of a deposit bond if specified. Sets timing, expiry, and when the vendor may call on it. 

Alternative to cash deposit if specified. Vendor can call on it if purchaser defaults. 

Purchaser pays balance; vendor transfers title and gives vacant possession or rent. Sets settlement timing rules. 

Settlement is conducted electronically (e.g. PEXA). Sets rules for workspace, timing, failure to settle, and delivery of keys. 

Explains whether GST is included or additional, and covers farming business, going concern, and margin scheme sales. 

If subject to finance, purchaser may end contract if loan not approved, provided they acted promptly and properly. 

This condition relates to the purchaser's ability to terminate the contract within 14 days from the sale date if they obtain a written report from a registered building practitioner or architect that identifies a current major building defect affecting the structure of the property. To do this, the purchaser must provide the vendor with a copy of the report and a written notice ending the contract, provided they are not in default. If the contract is terminated under these conditions, all money paid by the purchaser must be promptly refunded. 

This condition allows the purchaser to terminate the contract within 14 days of the sale date if they obtain a written report from a licensed pest control operator in accordance with Victorian law, identifying a current major pest infestation affecting the structure of a building on the property. To exercise this right, the purchaser must provide the vendor with a copy of the report and a written notice ending the contract, as long as they are not in default at that time. If the contract is terminated under these conditions, any money paid by the purchaser must be promptly refunded.  

Outgoings and rent are adjusted at settlement. Vendor liable up to settlement day; purchaser after. 

Purchaser must withhold and pay tax to the ATO if vendor is a foreign resident, unless clearance certificate provided. 

Purchaser must withhold GST for new residential or potential residential land and remit it to the ATO. 

Time is of the essence. Parties must act promptly and co-operate. Obligations survive settlement. 

Sets how notices may be served (including email) and when service is deemed effective. 

Vendor responsible for notices issued before sale; purchaser responsible for notices after sale (excluding periodic outgoings). 

Purchaser may inspect the property during the 7 days before settlement. 

Special rules apply if purchaser pays over time and takes possession before settlement (insurance, maintenance, mortgage discharge). 

Vendor bears risk until settlement. Property must be delivered in same condition, fair wear and tear excepted. 

Breaching party must compensate the other party for reasonably foreseeable loss and interest. 

Penalty interest applies to money unpaid due to default. 

A default notice must be given before enforcement, giving 14 days to remedy and pay costs/interest. 

If default continues, contract may end. Sets out consequences for both purchaser and vendor, including forfeiture of deposit and damages.