The Contract For Sale Of Land

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The front page of the 2005 edition of the Contract for the Sale of Land (Standard Contract) deals with whether or not vacant possession will be provided on settlement. The Contract is either marked “vacant possession” or “subject to existing tenancy”. If no box is marked, then vacant possession is the default choice. Clause 17.1 of the Standard Contract provides that normally, the vendor must give the purchaser vacant possession of the property on completion. There are a few meanings for the word “vacant possession”. The first meaning is that vendor will conveyance purchaser a property free of tenancy or right of occupation. The second meaning is that the property will be physically vacant. The third meaning is giving title to the…show more content…
The judge considered vacant possession includes the right to actual unimpeded physical enjoyment. Not any physical impediment will amount to breach the vacant possession, but it must be an impediment which substantially prevents or interferes with the enjoyment of the right of possession of a substantial part of the property. By contrast, in Lori Ann Nelson v Lynette Marie Bellamy, certain items were remaining on the land at completion date, the purchaser rescinded the contract by reason of the fact that there was a significant amount of rubbish and builder 's debris on the property. The court held that the items were present on the property at completion were not substantial, because such items did not impinge at all on the living areas, including the courtyard, and did not substantially prevent use of the undercroft or the side alleys which did not constitute a substantial part of the property. Similarly leaving furniture, or a large amount of vendor’s chattel have been held as breaches of a vendor’s obligation to give physical vacant possession of the property. 1.1 Are the parties able and willing to settle? In Austral Standard Cables Pty Ltd v Walker, the court found that if the purchaser had not stated that they would not complete due to financial difficultly prior to the settlement, the vendor would be ready, able and willing to complete. Therefore the vendor’s failure to
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