Further musings on the draft CSA (dated 23 August)

Take a very close look at clause 8.3

I do believe the sale price cannot be below the valuation done at close of tender. If the valuation is higher than the RP then the valuation trumps, the RP is bumped up to match the valuation. 

Surely, Sellers CANNOT  'approve' to sell the land at an undervalue - and that means at an RP or proposed sale price lower that the valuation.

So, the situation envisioned in 8.3 cannot happen - so this clause is complete nonsense and should be scrapped.

If the valuation is at the RP or higher and the proposed sale price is lower - then  that is where shenanigans come into play. The SC/MA will seek a new valuation to match the lower proposed sale price.

And miracles are performed.

This is the reason for the blank cheque in  4.4.1