A property contract is a document that legally binds parties involved in a real estate transaction. Crafting and understanding this document can be overwhelming. It outlines the parties, property, price, terms, closing, and sale contingencies.
One mistake or wrong move can lead to misunderstandings, unexpected costs or even losing the deal. Therefore, to make the procedure smoother. Here are some do’s and don’ts to keep in mind while signing a property contract:
The Do’s
Read the contract carefully
First, read the contract carefully. However, don’t just skim the paperwork before signing. Review it thoroughly as it includes key clauses, including settlement dates, deposit terms, and special conditions.
Seek legal advice
To spot errors in a property contract, consult with a conveyancer, solicitor or real estate expert. They can review the contract on your behalf ensuring your interests are protected. Thus, letting a professional review your contract is invaluable.
Understand the cooling-off period
Being a buyer, one must familiarise oneself with the regulations and cooling-off period. In this period, a buyer has the right to withdraw from the contract if there are significant defects in the property. In most states, buyers get a cooling-off period (for example, 5 business days in Queensland and Victoria) for withdrawal of the contract.
Get finance pre-approval – Make sure your loan is pre-approved if you’re purchasing to avoid issues on the day of settlement. If your loan fails, you may be protected by a financial clause in the contract.
The Don’ts
Don’t rush
Slow down as real estate transactions require careful consideration. Resist high pressure from the sellers or other parties to sign a contract without fully understanding its terms. Take your time and ask questions to mitigate future risks.
Don’t assume verbal agreements hold legal weight
If any promises are made, such as including furniture or fixing repairs, ensure they’re written into the contract.
Don’t ignore additional costs
Stamp duty, legal fees, and inspection costs can add up. So, budget for these expenses before signing.
Signing a property contract is a big step, and small mistakes can be costly. Accurate and thoroughly done paperwork creates a strong foundation for real estate transactions.
Whether you’re buying or selling, Sapphire Real Estate is here to ensure the process is stress-free and transparent. Contact us today for expert guidance!
