A number of clients have recently asked for a Covid-19 special condition to insert into their purchase contracts.
In my experience, as we have migrated to online conveyancing and on line stamp duty systems in the past few years the impact of the Covid-19 restrictions on conveyancing has been minimal. The greater issues are associated with loan approvals and specifically valuations. There are some unhappy stories out there about valuers returning valuations much lower than expected as they factor in and forecast future property price falls.
In any case, I have set out a sample special condition below.
Special Condition 1 – Force Majeure
In the event either party is unable to perform its obligations under the terms of this Contract of Sale because of acts of God (including a pandemic), strikes, failure of carrier or utilities, equipment or transmission failure or damage that is reasonably beyond its control, or as a result of any failure of any necessary systems such as PEXA, Duties Online and Land Use Victoria such party shall not be liable for damages to any other for any damages resulting from such failure to perform or otherwise from such causes. Performance under this contract of sale shall resume when the affected party or parties are able to perform substantially that party’s duties and obligations.
Please note that your circumstances and objectives may differ – so the above condition may not suit or may need to be amended to suit your needs.
Lewis O’Brien & Associates is always happy to assist you to make sure that your special conditions are exactly right for your needs.