Contract Review: Property Purchase, Legal Advice, and Recommendations

This report provides a detailed contract review of a property purchase agreement between Malcolm John Farmer and Glenda Merle Farmer (Purchasers) and Alistair Alan Howard and Linda Maree Howard (Vendors) for the property located at 58 Melva Circuit, St Kilda VIC 3182. The review covers key aspects of the contract, including the Vendor's Statement, Contract of Sale, and associated documents. It highlights crucial conditions such as loan approval, building reports, and the cooling-off period. The report also addresses the early release of deposit, referencing Section 27 of the Sale of Land Act, and provides recommendations based on the provided documentation. Furthermore, it examines foreign resident capital gains withholding tax and GST withholding obligations, offering guidance on compliance. The report concludes with a summary of key considerations and recommendations for the purchasers. The provided assignment also includes a memo of advice for the Parke Ranges Football Club, addressing questions about holding a football match on ANZAC Day and associated fundraising activities, offering legal advice based on the Anzac Day Act 1958.

Running head- CONTRACT REVIEW
Contract Review
Name of the Student
Name of the University
Author Note

1Contract Review
Malcolm Farmer & Glenda Farmer
32 Vincent Place
SOUTH MELBOURNE VIC 3205
Dear Mr & Mrs John
Purchasers: Malcolm John Farmer and Glenda Merle Farmer
Vendors: Alistair Alan Howard and Linda Maree Howard
Property: 58 Melva Circuit, St Kilda VIC 3182 (volume 9265 folio 062)
Purchase of Property
Thank you for your instructions we have received by email,
We have received the following documents from the vendor’s council and enclosed them:
1. Two copies of the Vendor’s Statement
2. Two copies of the Contract of Sale
3. Early Release of Deposit Authority along with a Leo Bank Ltd letter;
4. GST withholding Notice
5. Foreign Resident withholding clearance Certificate
We have revised the Vendor statements and the contracts, and they fulfil the required
condition with your instructions. We need to draw your attention upon the following matters:
A. Under the Particulars of Sale and General Condition 20, the contract is conditional upon
receiving the loan approval from Bank Ltd for the amount of $100,000.00 by 17 March
2020. Under the general condition 20.2, if this date does not permit your loan, you may
end the contract by giving written notice to the vendors by not later than two days after
this date.
B. General condition 21 states that the contract is also conditional upon attaining the
building report that reveals no major building defects in the property. Please ensure that
you or your builder contact the vendors to arrange access to the property as soon as
possible. If there are significant building defects, please let us know immediately.
C. A cooling-off period of 3 days applies to the contract. This means that you may end the
contract by giving the vendors written notice by three business days upon signing the
contract. If you end the contract in this way, you are entitled to a refund of all money paid
except 0.2% of the purchase price. Please contact our office immediately if you wish to
exercise this right
Upon reviewing the contract and the Vendor Statement, you can sign all the copies where the
sign is required along with the date only when satisfied.
EARLY RELEASE OF DEPOSIT
The vendors’ lawyers have also requested an early release of the deposit.

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Preliminary Analysis
Section 27 of the Sale of Land Act provides that the deposit can be released to the vendors
before settlement provided the following conditions are met:
I. The vendors must provide the purchasers with a written notice setting out details of
any mortgage or caveat over the property;
II. The purchasers must be satisfied that the details provided by the vendors are accurate
and show that the purchase price will be sufficient to discharge the mortgage
III. The purchasers must give the vendors written notice that they are also satisfied within
28 days
IV. The contract must not be subject to any outstanding conditions.
If the purchasers are not satisfied with the particulars provided by the vendors, they must give
written notice to that effect within 28 days of receiving the vendors’ notice and give reasons.
If the purchasers provide no written notice indicating either satisfaction or dissatisfaction
with the vendors’ notice within 28 days, they are deemed to be satisfied and to have given the
authorization to release the deposit to the vendors.
Where a vendor provides false information to a purchaser in their written notice, the
purchasers are entitled to withdraw the contract of sale and recover the deposited money.
Recommendations
In instance, our searches indicate that there are no caveats, and we have received all the
supporting documentation from the vendors’ mortgagee that shows there should be sufficient
funds to discharge the mortgage at settlement.
However, at the time of signing the contract, the contract will still conditional on you
obtaining loan approval and a builder’s report revealing no major structural defects.
Therefore, unless you have any specific objection to the early release of the deposit, we
recommend that you sign the section 27 Early Release of Deposit Authority and return it to
us, and upon authorization is given the sum of $160,000.00 which is the deposit for the
contract, will be released to the vendors.
Foreign resident capital gains withholding tax certificate
We have received the foreign withholding clearing certificate. Moreover, as per The Taxation
Administration (Act), 1953, the purchaser will be liable for the due payments on the property.
Broadly, a foreigner disposing of property in Australia has to pay tax for real property
retentions where the contract price is $750,000 and above (currently $2 million).By providing
this certificate, a purchaser does not need to supress 12.5% of the purchase price.
Notice of GST withholding certificate
We have also received the Notice of GST withholding certificate. As per the statutes the
vendor has to provide a notification under section14-255 of the scheduled act, as per the
notification necessities all contracts signed on or after 1 July 2018 for domestic property,
including the existing housing rented properties, except for the commercial and residential
premises. This is essential irrespective of the vendors are that are registered or needed to be

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registered for GST. By giving this certificate, a purchaser does not need to withhold 10% of
the purchase price.
Yours faithfully,

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Links To Resources
Allen, W. (2014). Taxation: Federal Estate and Gift Taxation: Powers of Appointment Act of
1951. Michigan Law Review,
Johnston, M.N., Sharam, A., Bryant, L.E. and Alves, T., 2015. Identifying the financial
barriers to deliberative, affordable apartment development in Australia. International journal
of housing markets and analysis.
Lloyd, D. and Rimmer, W. (2015). Sale of Land Act (Victoria). Sydney: Thomson Reuters
(Professional) Australia Pty Limited.