Ever wondered what all those clauses in a sale agreement actually mean, whether you are buying or selling a property?
Let’s decode a few clauses with a dash of simplicity!
- Purchase price
The purchase price is simply the price tag on the property. In a standard sale agreement, the purchase price is paid in two installments; mainly a deposit and the balance as agreed. Always double-check those zeros!
- Property details
This section includes the location, size, and anything else that makes the property unique. Think of it as the property’s dating profile, whereby you may swipe left or right!
- Completion date
The completion date marks the end of the sale transaction. A buyer may only demand vacant possession of the property upon full payment of the purchase price to the seller. Note to mark it on your calendar and start planning the housewarming or groundbreaking event.
- Representation and warranties
This clause outlines the assurances made by both the buyer and the seller concerning the sale transaction. For example, the seller assures the buyer that the property is not tangled up in court cases while the buyer promises not to back out at the last minute.
- Termination
This clause provides how either party may back out of the sale agreement if things go sideways. It ensures a clean split if needed, under clear terms, and includes penalties, if any.
- Governing law
This informs you which country’s laws will apply to the agreement. It ensures each party plays by the same rules, depending on the location of the property.
- Schedule of costs
This section outlines all incidental costs related to the preparation of the sale agreement. From legal fees to disbursement costs, including registration expenses it’s all listed here. It is quite essential for budgeting and avoiding financial surprises!
Conclusion
Understanding these clauses helps you navigate your property sale journey with confidence. Remember, there are more clauses in a sale agreement not covered here so a property lawyer can help make sense of it all.
May your sale agreements be smooth and straightforward!
Please contact us at Info@cfllegal.com should you require further information.
