'No recourse' condition in receiver contracts

It has come to the attention of the Conveyancing Committee that vendors acting by receiver routinely issue contracts containing a special condition in the following or similar terms.

“Notwithstanding any provisions of this Contract, the Purchaser shall have no recourse against the Vendor or any member of the Vendor’s staff or agents in respect of or arising from any valid claim to title being made by any third party or to all or any of the Subject Property except the right to make a claim to be an unsecured creditor of the Vendor which right shall be deemed to be waived by the Purchaser.”                     

It is the view of the committee that such a special condition, or one that has like effect, is totally objectionable and should not be accepted by any purchaser.

This condition should be distinguished from a special condition or term that limits the personal liability of a receiver or his office.