2014 contract for sale and purchase of land
Claire Armour, CSO Senior Solicitor
The new Contract for Sale and Purchase of Land 2014 Edition was released on 17 November 2014. This is the first edition update to the standard conveyancing contract since 2005.
As well as updating the Contract to reflect legislative changes over the last nine years, the main changes in the 2014 edition are:
- A new clause has been added to deal with the new processes required for electronic conveyancing – although the default position is 'no', the Contract contains a mechanism for the parties' legal representatives to elect to proceed using electronic conveyancing.
- The default provision has been amended to provide the purchaser with an express right to terminate the Contract if the vendor does not comply with an essential term of the Contract.
- The clause dealing with requisitions on title has been amended to allow the vendor to attach a form of requisitions to the Contract – if the requisitions are attached, the purchaser is taken to have made those requisitions (although this does not prevent the purchaser from making additional requisitions following exchange of Contracts).
- The Contract has been updated in anticipation of the new vendor disclosure requirements that will commence on 29 April 2015 if there is a swimming pool on the property to which the Swimming Pools Act 1992 applies – the vendor will be required to attach to the Contract a copy of either a valid certificate of compliance under the Swimming Pools Act or a recent occupation certificate authorising the use of the swimming pool together with evidence that the swimming pool has been registered.
- A new clause has been added to deal specifically with a purchaser's use of a deposit bond or guarantee – although the default position is 'no', the vendor will need to elect whether to accept a deposit bond or guarantee from a purchaser.
The 2014 edition is only available for individual purchase in electronic format from the Law Society's on-line portal and each Contract will be watermarked with the individual address of the subject property. The blue printed forms of the Contract for Sale will soon become a thing of the past!