As exciting and simple as it sounds, when buying or selling your first home it is of utmost importance to understand what you are signing for, and what are the legal ramifications of your signature.
The terms Offer to Purchase and Deed of Sale are often used inter-changeably, but they are different. When an Offer to Purchase a property is signed by a buyer and accepted by the seller by signing the document, this constitutes a legally binding agreement or ‘Deed of Sale’ between the two parties. The Purchaser makes an offer and the Seller accepts the offer. This means that both parties to the contract are bound by the terms and are required to fulfill his or her responsibilities as set out in the contract.
It is the buyer and seller’s responsibility to make sure that they read and understand all the clauses of the Deed of Sale. Failing to adhere to the terms and conditions of a Deed of Sale, amounts to breach of contract.
A breach of contract exists when a party to the contract does not do what was agreed upon in the Deed of Sale.
Should either party be found to be in breach of the terms of the Deed of Sale, the procedures stipulated in the breach clause in the Deed of Sale must be adhered to. The consequences of which, may result in cancellation of the agreement, a claim for damages, payment of the estate agent’s commission and the attorneys’ wasted costs.
Although signing an offer to purchase may seem intimidating, it remains an exciting milestone.
Contact our conveyancing attorneys for expert legal advice and assistance with your property purchase, property sale and the necessary legal contracts.
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