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  • Dino Montepara

Title approval clauses- sale and purchase agreements

Title deed sale and purchase agreements

A due diligence clause usually maximises your protection as a purchaser because it provides for you withdrawing from an agreement on almost any basis. However, in the absence of a broad due diligence clause there should at least be a solicitor’s title approval clause. Without it, you as a purchaser take a risk about things on the title including easements or land covenants. That is, while it is possible to object to a mistake or a defect on a title, there are situations where the easement is not defective but unsuitable for your purposes. The easement or land covenant for instance may involve lengthy restrictions against your freedom to build, fence and landscape the property with materials of your choice. Or, an easement in favour of another person, while not defective, prevents you doing other things on your land such as further building within that easement envelope.

For this reason, it is sometimes helpful to include your lawyer before you sign a purchase agreement for a property. This is especially so if you want to make an offer with a minimum of conditions in order to facilitate getting to agreement.



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