Mortgages and Financing

Special conditions are supplementary conditions incorporated in a contract. Whether you are the seller or the buyer, to protect your interest it is advisable to consult your Solicitor to determine as to what conditions can be deemed ‘special’ for inclusion in the contract.

Special Conditions in a Contract

Special conditions can be included in a contract at the request of either the seller or the buyer and which are mutually agreed upon by both the parties. Though special conditions depend upon the terms of a particular contract, however you may include the following conditions set out herein by way of special terms:

  • your nominated licensed surveyor or a structural engineer or a person holding professional indemnity insurance to finalise and provide a ‘Land Inspection Report’ confirming the structural reliability of the property;
  • a registered termite inspection company to prepare and provide a ‘Termite Inspection Certificate’;
  • working order clause with respect to setting up of electrical lines, piping and plumbing fittings, drainage system or such other things which the parties to the contract may deem proper;
  • payments to be made by either party with regard to necessary maintenance and repairs to the land or property;
  • schedule of payment of deposit amount in installments such as first installment to be paid on signing of the sale contract while the balance amount to be paid upon financial sanction from a bank or other financing companies;
  • penalty(ies) for delay in settlement;
  • the sale of the land or property is subject to lease;
  • nominating and authorising any person to accept the contract on your behalf by facsimile;
  • any repair that the parties have agreed to do;
  • approval of the sale contract by a nominated Solicitor;
  • time limitation for acceptance of offer by the buyer in circumstances where the seller is hard to get hold of or the existence of several offers to buy the land are in place;
  • purchasing a strata-titled property only upon satisfactory inspection of body corporate records;
  • simultaneous settlement wherein you are selling off one of your properties and the fund so obtained is being used to purchase another property;
  • testing the soil for the purpose of pool installation and checking whether such installation complies with the applicable local bye-laws or not;
  • accepting the property in its current condition subject to all the latent and patent defects;
  • accepting to buy the land within a certain time period from the date of making the offer; and
  • a special condition wherein the seller can also accept or reject the offer within a certain date.

All the special conditions in a contract must be as precisely worded as far as possible in order to avoid future disputes. All amendments and extra conditions should be signed and dated by the parties to the contract. It is advisable to seek expert advice to ensure that the special conditions are drawn up correctly.

Furthermore, any special condition should clearly state as to what action ought to be done and when, who will be responsible for the action being done, who is responsible for payment of the action being so done and what are the consequences if such action has not been completed within the due date as given in the contract.

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