REIWA Contract Information – Perth Stocktaking – Associated Stocktaking
The following is an excerpt from the REIWA Agreement for the Sale of a Business General Conditions:
5. Stock in Trade
- The Seller agrees to sell and the Buyer agrees to buy the marketable stock of the Business on the date of Possession for a sum agreed upon by the Seller and Buyer.
- If the Seller and the Buyer do not agree the value of the stock:
- The parties shall nominate a stocktaker to count and if they do not nominate a stocktaker either of them may request the President of the Real Estate Institute of Western Australia (Inc) to nominate a stocktaker.
- Prior to commencement of the counting of the stock the Buyer shall pay to the Seller’s Conveyancer the sum estimated to be the value of the stock shown in B5 of the Schedule to be held by the Seller’s Conveyancer as a stakeholder.
- If the value of the stock exceeds the amount paid to the Seller’s Conveyancer the Buyer shall not be obliged to purchase the stock in excess of that value. The stock to be withdrawn from sale shall be agreed upon by the parties or failing agreement determined by the stocktaker.
- Upon completion of the stocktaker’s valuation, the Seller’s Conveyancer shall pay to the Seller the amount held in trust as stakeholder less any shortfall in the valuedetermined by such valuation and shall refund the balance to the Buyer.
- The stocktaker’s fees shall be borne equally by the Buyer and Seller.
- The decision of the stocktaker shall be final and binding on the parties.