A sale and purchase agreement provides certainty to both purchaser and seller, with any concerns circumvented if both parties seek legal advice before signing. There is a significant risk involved if you fail to get proper legal advice from the outset.
Accepting an agreement without first requesting the rigorous review of a professional team can be catastrophic. Not least of all, you may find yourself locked into a contract that does not serve your best interests. The review process should leave no stone unturned so that you may enjoy the countless positive outcomes associated with your transaction.
Many sale and purchase agreements contain conditions that require fulfilment before the transaction can proceed. The agreement must clearly express all contractual requirements and allow sufficient time frames to satisfy these conditions; this will help prevent any surprises on the settlement date.
An experienced legal team will check existing agreements or create an entirely new one for you, ensuring it includes the best possible terms and conditions, including vendor warranties, if required. They should also advise you of any alterations to the standard agreement and the implications of those variations. There is also the opportunity to add optional conditions or to identify unreasonable expectations of the other party. Ultimately, a professional legal advisor should ensure that you sign an agreement wherein your interests are sufficiently protected.
At a minimum, your conditions should include a generous due diligence clause, allowing time to check the LIM Report for the property, obtain a builder’s report, and obtain unconditional finance in respect of your purchase. You must be able to thoroughly investigate the property you want to purchase and confirm your finances, addressing any potential issues before the agreement goes unconditional.
It is important to note that a legal team will also act on your lender’s behalf if you seek to obtain a mortgage, ensuring their interest is protected. They will assess the property for any defects that may prejudice or compromise the lender’s position and are required to report any issues that may indicate the property is not suitable security for the loan. Suppose they discover a defect or unresolved issue? In this case, unless your offer to purchase was subject to finance or due diligence, the bank may withdraw finance approval, leaving you with no way to pay for the property.
No two property purchases are the same. Therefore, it is essential to consult your lawyer and discuss what conditions are appropriate for your circumstances before signing an agreement.
Under the Anti-Money Laundering legislation, lawyers must verify your identity before completing any work on your behalf; this is another reason why it is essential to get in touch with a professional as soon as you consider buying. That way, you can have all the red tape cleared and your identity verified before any agreements reach the table.
Employing a lawyer from the outset of the transaction through to settlement will ensure that you eliminate the risk and can get on with the business of creating a home!