The importance of fully understanding your obligations and responsibilities under any executed contract is demonstrated in a
Question:
The importance of fully understanding your obligations and responsibilities under any executed contract is demonstrated in a dispute between a custodian of crown land and a private individual. A recently arrived migrant to Australia approached a mortgage broker with a view to purchasing a property that included a number of structures that had been built on crown land. After completing the loan application together, the broker referred the client to a relationship partner, in another part of town, to undertake the conveyancing for the purchase.
Shortly after completing the purchase, the custodian informed the new owner that he would need to remove the structures as they were illegally built on crown land. The structures had been built on this land a number of years before by the previous owner. The custodian decided to leave them in place and only pursue their removal when the previous owner had passed away. It was written into the contract signed by the new owner, when he purchased the property that the custodian would remove the structures when the property changed hands. The individual said he was not made aware of this clause in the contract and claimed unfair behaviour.
This dispute arose because of:
The small business failing to fully understand its obligations under the contract it signed
Failing to get adequate legal advice to ensure the contract met its expectations
The custodian failing to ensure that the small business understood its obligations and responsibilities under the terms of the contract.
Question: Assume the purchaser has been referred to a commercial property conveyancer by the mortgage broker. How could the mortgage broker apply high level communication, negotiation, interpersonal and relationship management skills to avoid the situation described in the case ?
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts