You found the perfect property, the vendor and their agent have been amazing, friendly, flexible and have been open to all of your requests through the negotiation stage. Sounds to good to be true? It might just be!
If you’re thinking about purchasing a property, do not take the word of the vendor or their agent. The details of any negotiations are in the pages of the contract. As stated by Ronald Regal – “trust, but verify”.
Conveyancing has gone through significant changes over the past 5-10 years. Processes and legislation have modified and, subsequently, so to has the contract of sale. Gone are the days of fairness and equality in a contract, with contracts now re-written to solely protect the vendor leaving the contract reflecting a ‘no vendor liability’ or ‘take it or leave it’ status. Further, as the property market expands and there is more interest surrounding a property, you may feel pressured to sign on the dotted line without first obtaining advice.
A contract reflects the negotiations between you and the vendor. A standard clause now placed in contracts is that the contract is the entire agreement and you will not be able to rely on any promises, assurances or agreements made by the vendor or their agent unless that are inserted into the contract. It is, therefore, very important that all negotiations with the vendor are disclosed and inserted into the contract.
It is also important for the contract to be reviewed so you are aware of your obligations. The worst contracts will see you not being able to make any claims against the vendor for damage caused by the vendor or for their failures to comply with building regulations or contamination of the land. Further, the penalties applied for delayed settlements, delayed paperwork and requests for finance approval extensions can make for a very expensive exercise.
A further catch is when an agent asks for you to sign the contract as a way to secure your offer to the vendor, but, you have not yet had the contract reviewed and amendments may be required. The agent may then provide this to the vendor and, if accepted, the contract becomes binding.
Amendments to the contract are part of the negotiations and should be completed prior to your signing any contract. You may be able to reply on the 3-day cooling off period, but, it is best to speak with our office in this regard.
If you need any advice in relation to your purchase or potential purchase, please get in touch with us and we would be happy to assist you!
Katherine Taylor – Solicitor
BCriminology (History), LLB