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Agreement for Sale and Purchase
May 06, 2013 at 11:16 AM
When a Real Estate agent says you can get out of a sale and purchase contract if you get cold feet then they are spinning you a line as it is not as easy as that. Even if you think the following clause allows you to do that:
"Notwithstanding that this agreement is an immediate and fully binding contract the obligations of the Purchaser hereunder shall be suspended until the agreement has been approved in all respects by the Purchaser's solicitor etc..."
A sale and purchase contract is a binding contract and if you were forced to go to court over an sale and purchase agreement, if you do not have valid reasons to cancel the contract, then the judge may see in favour of the seller (vendor).
It is important to do your due diligence before you make an offer on a property such as check out the street and area, transport and schools. Check with Property Managers as they have a very good idea of customers (your future neighbours) in the area you are planning to buy in. This is important for resale, harmony with the neighbours, and rental income.
This can be done without costing you any money. Once you are satisfied with your due diligence then put in an offer with clauses to check the property's title, builder's report so that there are no nasty surprises, and finance as some Banks may have different criteria for leasehold, units, or apartments compared with fee simple (freehold) property.
