1 Standard Business contract does not relate to the sale of land

2 Two contracts have to be filled if you were to sell land and lease the property out
One for the sale of lands the other for leasing the property out.
A business contract would sell the business as a going concern.

3 A sale of a property means that the buyer and seller have a certain time to fulfill the
requirements before a breach is incurred by either party.

4 A seller must explain to the buyers and sellers once entered into a contract it is binding
contract subject to a cooling of period.
When the cooling period has expired the only options open to either party are exercised
by the provisions of special conditions and standard terms contract.

5 All Matters affecting the property must be fully disclosed to the buyer before
negotiations are entered into.
Standard special conditions are
1 Subject to finance
2 satisfactory building inspections
3 Satisfactory pest inspections
4 On going tenancies

6 A condition is a prerequisite implies that something must occur in the agreement if the
agreement is to be fulfilled.

7 Due Diligence is a process of researching or investigating a matter before a

commitment to do something. Both the seller and the buyer can request due diligence
period.

8 After due diligence has been complete to the satisfaction to the buyer and seller, the
exchange can take place where the contracts can be exchanged.

9 Gazump; The act of placing or accepting and offer on a property when another offer
already exists. Because contracts foe the sale of land must be in writing a verbal
agreement can be over ridden by a higher offer prior to contracts being exchange, this is
commonly occurs in the due diligence period before a contract is formalized and
exchange.

10 Real estate means the land and its inherent rights which includes whatever is attached
to the land by the nature of man

11 Real property means; the interests, benefits and rights inherent in the ownership of the
physical real-estate. It’s the bundle of rights with which ownership of real estate is
endowed. These rights however are subject to the law of the land.
Settlement; The process of completing a transaction where the ownership or rights in a
12 Property are transfer from one party to another party
Terms of sale; these are the conditions implied by contract law and embodied in the
contract of sale. The terms are usually not negotiable.

13 Section 59 of the property law act 1974 states that no action may be bought upon any
contract for the sale of land, or any interest in land, unless the contract is in writing, and
signed by the “party to be charged” which means the person who is being sued.

14 Essential elements of a valid contract

1 Intention to create legal relations

2 Offer and acceptance (agreement)
3 Valid considerations
4 Legal capacities
5 Genuine consent
6 Legality of objects

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