Receiving and accepting an offer on your property is both exciting and a relief. However, there are still a few things to work through prior to completion of the sale. Here’s what you need to know about completing the sale and how to get through the final step of the process.
Important things to know
- A sale and purchase agreement is a legally binding document. When signed it signifies a mutual understanding between the buyer and the seller.
- In most instances, the buyer has to pay a deposit greater or equal to 10% of the purchase price.
- The deposit is usually held in a trust account.
- An agent is typically responsible for making any changes and alterations to the sale and purchase agreement.
- The sale will have conditions attached to it that we require attention. It is also important that these conditions are to the satisfaction of both parties.
- In the case of private sales, it is always best to seek professional assistance and guidance.
- The transfer of money from the buyer to seller is done on completion day. It is also the day you the buyer finally gets the keys can start moving into their new home.
Upholding your end of the agreement
Remember the agreement is a legal contract. As such, it is vital for either party to honour their end of the deal. Either party must fully understand their obligations so as to avoid penalties and defaulting on the agreement.
The signing of the sale and purchase agreement will signify the need for the buyer to pay a deposit. However, this will primarily depend on the method of sale. In most instances, the deposit is equal to or greater than 10% of the property purchase price. Furthermore, the deposit facilitates the payment of the agent’s commission or fees.
Working through the conditions
Both the buyer and seller will have conditions. Before signing the agreement, both the buyer and seller must meet pre-determined conditions. However, failure to meet these conditions may result in penalties being imposed. The successful fulfillment of both the buyer’s and seller’s conditions leads to an unconditional sale. Extensions can be facilitated through mutual consent. Any alterations or changes subsequently bed to be signed off by both parties.
Dealing with issues
There are circumstances under which issues or problems arise that require either party to withdraw from the agreement. Both the buyer and the seller have to notify their respective lawyers in the event of agreement termination.