Australian Capital Territory Current Acts Australian Capital Territory Current Acts(1) A contract for the sale of residential property must include conditions to the following effect:
(a) except as disclosed in the contract—
(i) the property is sold free of encumbrances other than the encumbrances shown in the land titles register; and
(ii) the buyer is entitled to vacant possession on completion of the contract;
(b) if, before completion of the contract, the buyer becomes aware of a breach of a condition mentioned in paragraph (a), the buyer may—
(i) rescind the contract; or
(ii) complete the contract and claim damages;
(c) except as disclosed in the contract, there are no unapproved structures;
(d) if, before completion of the contract, the buyer becomes aware of an unapproved structure that is not disclosed in the contract, the buyer may—
(i) ask the seller to arrange for the structure to be approved before completion of the contract; and
(ii) if the structure is not approved before completion—rescind the contract, or complete the contract and claim damages.
(e) the buyer may not make any requisitions on the title to the property;
(f) the seller warrants that, at the date the contract is made—
(i) the seller will, at the time of completion, be able to complete the contract; and
(ii) the seller has no knowledge of any unsatisfied judgments, orders or writs affecting the property; and
(iii) the seller has no knowledge of any current or threatened claims, notices or proceedings that may lead to a judgment, order or writ affecting the property;
(g) the seller warrants that, at the date the contract is completed—
(i) the seller will be, or will be able to be, the registered proprietor of the territory lease relating to the property (if any); and
(ii) there are no unsatisfied judgments, orders or writs affecting the property; and
(iii) the seller has no knowledge of any current or threatened claims, notices or proceedings that may lead to a judgment, order or writ affecting the property;
(h) if, before completion of the contract, the buyer becomes aware of an error in the description of the property the buyer may—
(i) ask the seller to arrange for the error to be corrected before completion of the contract; and
(ii) if the error is not corrected before completion—
(A) for an error that is material—rescind the contract, or complete the contract and claim damages; and
(B) for an error that is not material—complete the contract and claim damages;
(i) the following required documents for the sale form part of the contract:
(i) for the sale of a unit in a retirement village—the initial required documents and the later required documents mentioned in section 10A (7);
(ii) in any other case—the required documents mentioned in section 9 (1) (a) to (l).
(2) However, the conditions mentioned in subsection (1) (f) (ii) and (iii) and (g) (i), (ii) and (iii) are not required to be included in a contract if the property is being sold—
(a) by a mortgagee in possession of the property, or exercising a power of sale; or
(b) by a registered or official trustee, or the official receiver, under the Bankruptcy Act 1966
(Cwlth); or
(c) under a court order.
(3) Also, the condition mentioned in subsection (1) (h) is not required to be included in a contract if the contract is for the sale of a unit in a units plan before the units plan is registered.
Note The Civil Law (Property) Act 2006
, division 2.9.3 incorporates a number of implied warranties into a contract for the sale of a unit in a units plan before the units plan is registered.
(4) If a contract for the sale of residential property is entered into and the contract does not include a condition required under subsection (1) to be included in the contract, the condition is taken to be included in the contract.