Special condition in contract reduces risk
BILL Lyons, of Bill Lyons Solicitors Caloundra, answers this week's legal question:
When buying a unit how can the buyer ensure he is not "buying into trouble"?
In a community title scheme, trouble can take many different forms.
The most common is building defects, which require additional contributions from owners to pay for rectification work. On rare occasions, the body corporate may be involved in court litigation. Sometimes there is animosity among owners, which causes significant disharmony.
The easy way to manage that risk is to have a special condition inserted into your contract before you sign it, making the purchase subject to you being satisfied with the results of the body corporate records search to be carried out by your solicitor within, say, 14 days from the contract date.
It is commercially reasonable for you to ask for that special condition.
Experience shows that in the vast majority of cases, the body corporate records search does not reveal issues that are of such concern to the buyer that the contract is ended.