Beware The Badly Worded Bond Clause!

KVV Inc Attorneys

Published on: 04/03/2025

A recent court case highlights the importance of clearly worded property sale agreements. A seller tried to escape a sale, claiming a bond clause had expired. The clause stipulated a 30-day period for bond approval, starting from "sole beneficial occupation," not the sale date. Despite the buyer having possession and occupation, the court found "sole beneficial occupation" hadn't been granted due to unlawful occupants. Therefore, the 30-day period never commenced, and the seller remained bound by the agreement. This underscores the need for professional legal assistance when drafting or reviewing these agreements.