If you are buying or selling a property or land, you may have come across special conditions of sale in the contract. It is important that you understand what they mean, and what your obligations and rights are under the contract.

What are special conditions in a contract of sale?

‘Special conditions’ are additional conditions attached to a standard contract of sale, which are commonly included in contracts relating to the sale of a property. If you are a seller, your solicitor can advise you as to what conditions can be included in a property sales contract. If you are considering buying a property, your solicitor can explain the special conditions in the contract.

Examples of special conditions in contract of sale of land

Special conditions of sale agreed by both parties can be included at the request of the buyer or the seller. Examples include:

1. Pest inspection certificate prepared by a registered pest inspection company;
2. Land inspection report on the structural soundness of the property, completed by a licensed surveyor or a structural engineer or a person of your choice holding professional indemnity insurance;
3. Payments to be made by either party with regard to necessary maintenance and repairs to the property;
4. Working order clause with respect to the setting up of piping and plumbing fittings, drainage system, and electrical lines;,
5. Penalties for delay in settlement;
6. Payment of the deposit amount in instalments, including that the first instalment will be paid on the signing of the sale contract with the balance amount to be paid upon financial sanction from the bank;
7. Authorising someone to accept the contract on your behalf by email;
8. Any repair agreed to by the parties;
9. The sale of the property is subject to a tenancy;
10. Approval of the sale contract by a nominated solicitor;
11. Time limitation for acceptance of offer by the buyer in circumstances where the seller is hard to get hold of or several offers are in place to buy the property;
12. Testing the soil for the purpose of installing a pool and checking whether such installation complies with the local bylaws;
13. Simultaneous settlement wherein the buyer is selling off one of their properties and using the proceeds of sale to fund the purchase of another property;
14. Agreeing to buy the property within a certain time period, for example within 3 days from the time when the offer was made. The property can be sold to any other person in the event you are unable to accept the offer within the stipulated time frame. A special condition may be inserted where the seller can also accept or reject the offer by a specified date;
15. Accepting the property in its current condition subject to latent and patent defects. You may make necessary enquiries with the help of your solicitor in this regard as there may be a defect which would make you reconsider buying the property if you were made aware of it.

How do I draft a special condition for a contract of sale?

Any special condition should clearly state:

• What action has to be done and when;
• Who is responsible for the action being done;
• Who is responsible for paying for the action to be done; and
• the consequences if the action has not been completed within the set period.

Special conditions must be as precisely worded as possible to avoid future disputes. All amendments and extra conditions should be signed and dated by the buyer and the seller.

What if the special conditions of sale are not met?

Provided the contract allows for it, if the special conditions are not met, the buyer can cancel the contract or ask for an extension of time to sell their property or to obtain finance. If the contract is cancelled due to this, the seller must return the deposit.

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