What do all of these Special Conditions in the Contract mean?
The Contract is often subject to a considerable number of Special Conditions.
These Special Conditions effectively contemplate the mortgagee sale, and provide that the property is purchased on an ‘as is, where is’ condition with all known faults and defects, with no rights of recourse against the Seller. This means that the Seller gives no warranties or representation in respect of the property. Upon entering into a Contract for a mortgagee sale, the Buyer acknowledges that they have made their own enquiries in relation to the property.
The mortgagee, who is often the Seller, is not the registered owner of the property, but is authorised to sell the property as mortgagee exercising power of sale pursuant to a mortgage which was granted to it by the registered proprietor of the property under the Land Title Act 1994.
Upon entering into the Contract, the Buyer will often acknowledge and agree that they do not rely on any representation, warranty, condition or other conduct which may have been made by or on behalf of the Seller.
The Special Conditions may also provide that a Buyer acknowledges and agrees that they have had adequate opportunity to conduct due diligence investigations into the Property and raise queries with the Seller about the property.