As the real estate market continues to boom, more and more people are getting interested in buying properties. While the process of buying a new property may seem straightforward, it’s important to know the specific terms and conditions that are outlined in the buying property contract.
The contract is the legal document that outlines the terms of the purchasing agreement and serves as the written agreement between the buyer and the seller. This document is a binding contract that outlines the legal responsibilities of both parties, so it’s crucial to make sure that all parties agree to the terms before signing the document.
Here are some important points to keep in mind when reviewing the buying property contract:
1. The Purchase Price: The contract should clearly state the purchase price of the property, including any additional costs such as taxes and fees.
2. Deposit: The contract should state the amount of the deposit and the date by which it must be paid. Typically, the deposit is 10% of the purchase price and is paid into a trust account until the property is settled.
3. Settlement Date: The contract should specify the date by which the settlement must be completed. This is usually 30 to 60 days after the contract is signed.
4. Condition of the Property: The contract should outline the condition of the property at the time of purchase. This includes details such as any defects or damages that need to be repaired before settlement.
5. Title: The contract should state that the seller has the legal right to sell the property and that there are no other outstanding claims or encumbrances on the title.
6. Property Inspection: The contract should specify any property inspection conditions, such as building and pest inspections, that must be completed before settlement.
7. Cooling-Off Period: In some cases, a cooling-off period may be included in the contract. This allows the buyer to change their mind about the purchase within a specified period, usually five business days. If the buyer decides to cancel the purchase during this period, they may forfeit the deposit.
8. Special Conditions: The contract may contain other special conditions, such as the inclusion or exclusion of certain fixtures and fittings, or specific terms relating to a shared driveway or boundary fence.
When signing a buying property contract, it’s important to work with a reliable real estate agent and a legal professional to ensure that you fully understand the terms outlined in the contract and that they are favorable to you. By doing so, you’ll be able to go into the purchase process with confidence and peace of mind.