The New Standard Conditions of Sale 5th Edition:
Standard Conditions of sale are incorporated into residential property contracts and the new standard conditions of sale were launched on 1 April 2011.
The most notable differences between the 4th edition and 5th edition can be found below:
The rather old fashioned term “Chattel” has been replaced with the much more up to date term “Contents”. Contents are now not taken into account when calculating the deposit and the deposit will now been calculated as 10% (in most cases) of the purchase price only.
Inclusive or Exclusive?
Under the 4th edition all sums payable under the contract were Exclusive of VAT, this has been changed under the 5th edition so that the purchase price and the contents price are now Inclusive of VAT (with any other sums payable under the contract being Exclusive of VAT).
To insure or not to insure?
Under the 5th edition the risk now passes to the buyer on exchange of contracts rather than at completion under the 4th edition. Where the 5th edition conditions apply the buyer must arrange to insure the property from exchange of contracts as the seller will not be obliged to insure the property from this point onwards.
If you would like anymore information on this, please contact Amanda O'Mahony.