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Buying a House
Contracts and Conveyancing

Contracts and conveyancing

When you have decided to buy a property the next step is to enter into a legally binding contract with the seller. This is a critical stage and should not be entered into lightly. Before signing anything be sure that you understand the contract and your obligations under it. If you sign and try to get out of the contract later, you could lose your deposit, which is often about 10% of the value of the property and any other losses that the seller may incur when selling the property again. The seller may even take legal action to make you complete the contract. If that happens you may be up for the seller's legal costs as well as your own.

While many real estate agents use standard form contracts, often supplied by the Law Society, it does not mean that it will suit your needs. It is most important to seek independent legal advice before signing.

Points to think about before signing a contract:

• Is the purchase price correct?
• Do you want to have the property inspected by a building consultant or engineer before signing the contract?
• Are you certain that the property described in the contract is the one you want to buy?
• Are the property boundaries correct and the building well inside the boundaries?
• Do you need finance?  If so you should ensure that the contract is signed subject to finance approval by a finance institution of your choice, not the seller's.
• Do you have to sell your property before you buy this property?  If so make sure that the contract contains a clause which says that it is conditional upon you selling your property.
• Are there any special conditions that you want to include, such as the seller finishing some renovations? Remember to ensure that any promises are written into the contract.

If there is any dispute over the sale details the primary source of evidence is the contract.  Make sure you have checked the detail and it is acceptable to you.

You cannot expect to be an instant expert in contracts, so why not take it to a professional who deals with land contracts all the time before signing?

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