Common Traps to Look For in a Contract of Sale
What steps do you usually take before finalising a purchase? Most of us will do some research to examine a product in depth, and even look at competitors to see if we can get a better deal. When buying a car we look under the bonnet and enlist the expertise of a professional to identify underlying problems.
All of these examples have one thing in common – they’re driven by details – and the same thing applies when purchasing a property. When buying a home many of the details are often hidden in the contract of sale. Only by examining these conditions will you know if you’re being protected. But what sort of things should you look for in a contract?
While you want to review the whole contract with a property law expert, you should pay special attention to the Special Conditions. These conditions operate alongside the General Conditions of a contract and they often work to a vendor’s advantage. The wrong special condition can alter or overwrite a General Condition, and work to your disadvantage.
Predefining Reasonably Foreseeable Loss
If you breach your contract as a buyer, you may have to compensate the vendor for reasonably foreseeable losses. Late payments are one example of a contract breach that may lead to these losses. In your contract you should make sure that these losses are not predefined. You don’t want to admit to anything you don’t have to in advance.
Minimise Your Legal Costs, Not Theirs
Special conditions can be inserted into contracts that force a buyer to pay for a vendors legal costs in different circumstances. These include if you need to reschedule your settlement. These conditions are simply an attempt to reduce vendor costs and they are an unreasonable addition to your contract of sale.
The penalty interest rate is always set at a prescribed amount, which can rise and fall depending on the time. If the penalty rates in your contract are higher than the prescribed amount then you should request that this is changed. The prescribed amount exists for a reason and no special condition should force you to pay more.
Conditions that Protect You
Another common trap in many contacts of sale are special conditions that work to your advantage. By working with an expert property law and conveyancing team, you can review your contract and request additions. Of course, there will be changes that you’re not allowed to make too, which is why you should always work with an expert.
By hiring a property lawyer for your conveyance, you can make sure that a contract of sale best represents your rights. Sometimes this will be through the removal of conditions, and sometimes it will be through the implementation of new, counter conditions.
If you’d like to learn more about your rights in a contract of sale, or need someone to guide you through the legal elements of buying and selling, contact Bartels Lawyers. As your expert legal team around Brisbane, Logan City and its surrounds, we make fairer contracts easier for you. Call us on (07) 3341 2222 to organise a free initial consultation.