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KembaraXtra – Legal Terms – Open Contract
An open contract is a contract for the sale of land in which only the essential terms are expressly stated, namely the identity of the parties, the property being sold, and the purchase price.
Even though few terms are expressly written, the law implies a number of additional obligations into the agreement. These include the vendor’s duty to convey good title, provide vacant possession, and complete the transaction within a reasonable time.
For unregistered land, the vendor must also provide an abstract of title beginning with a suitable *root of title, traditionally at least 15 years old.
If completion is delayed beyond a reasonable time, the vendor may claim interest on the unpaid purchase money, while the purchaser may become entitled to income generated by the property from the date completion should have occurred.
In practice, modern conveyancing rarely relies solely on open contracts because detailed standard conditions of sale are usually incorporated to regulate the parties’ rights and obligations more precisely.
An open contract is a contract for the sale of land in which only the essential terms are expressly stated, namely the identity of the parties, the property being sold, and the purchase price.
Even though few terms are expressly written, the law implies a number of additional obligations into the agreement. These include the vendor’s duty to convey good title, provide vacant possession, and complete the transaction within a reasonable time.
For unregistered land, the vendor must also provide an abstract of title beginning with a suitable *root of title, traditionally at least 15 years old.
If completion is delayed beyond a reasonable time, the vendor may claim interest on the unpaid purchase money, while the purchaser may become entitled to income generated by the property from the date completion should have occurred.
In practice, modern conveyancing rarely relies solely on open contracts because detailed standard conditions of sale are usually incorporated to regulate the parties’ rights and obligations more precisely.
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