RE: S&P Clause

[mich31]

Hi there,

Can someone tell me what the following clause means? Is it applicable to the vendor only?

"The sale evidenced by this or any subsequent agreement between the parties has been made through Harcourts whom the vendor appoints as his agent to effect such a sale. The fee payable to the agent shall be as previously agreed, in writing, or if no such agreement exists, shall be calculated on the purchase price contained herein of the base of the first two hundred and fifty thousand dollars 4%, secondly, on the balance of the consideration, 2% plus GST on the total fee."

Any help would be great. Thanks.


Regards,
Michelle

[graemeh]

It's the agent making sure they get their commission from the vendor. I'm guessing the vendor does not have a written agreement with Harcourts but maybe they are just being careful.

It is a really good idea to get your lawyer to check the agreement before you sign it. Most of the agreement is pretty standard so it won't cost a huge amount and it may save you grief later. The lawyer can also advise on clauses you may wish to insert, such as subject to finance, a satisfactory LIM report, satisfactory building inspection (structural, plumbing and electrical).

Even if you decide to leave some of these conditions out, it is good to think about whether you want them.

I expect the vendor will change the clause to put a time limit on it.