A lot more than you might think ... The Seeff experts weigh in.
Buying a home is very exciting, but can also be daunting. Ensure that you have done as much research as possible to make a good purchasing decision on both a financial as well as a personal level as buying a house is one of the most important decisions that you will ever make. Buying a property, especially as a first timer, is not a decision that should be taken lightly.
When you have the home of your dreams, you are ready to sign an Offer to Purchase, also known as an Agreement of Sale. The Offer to Purchase is an agreement which lays out the terms and conditions of the property transaction between the buyer and seller.
The agreement is drawn up by the estate agent or the conveyancer along with the seller, and clearly explains in detail the particulars of the sale agreement, providing security to both the buyer and seller, and ensuring there is no uncertainty about the property being sold, its condition and any other important elements.
The Offer to Purchase is signed by the buyer and then the seller if the price and conditions offered is accepted and within the time of expiry. Once both parties have signed, the document is now considered a legal binding contract to which both the buyer and seller are required by law to fulfil their responsibilities as set out in the agreement. If the offer expires or the seller has rejected it, the buyer is no longer be bound by that offer.
Once the offer is accepted though, cancelling the agreement is then only possible should there be a basis in law for doing so. One of the more common reasons for cancellation is usually a clause or condition of the sale not being met in the time allocated.
These are usually referred to as suspensive conditions and an Offer to Purchase can include a suspensive clause or condition whereby only once that condition has been fulfilled, will the contract come into force.
Another reason for cancellation is breach of contract where either the buyer or seller has contravened the agreement or neglected to fulfil the condition set out. The other may then lawfully cancel the contract.
An Offer to Purchase serves to protect all parties involved, ensuring that nothing is left to interpretation with little to no room for error. Seeff insists that it is vital that the agreement thoroughly covers all terms and conditions of the sale including issues like the date of occupation, fixtures or fittings as well as the conditions of the sale itself.