As the old saying goes, “Having a roof over your head is one of the necessities of life.” However, with changing times and increasingly busy lifestyles, most people find it easier to rent a place than to buy it. While renting a place may seem like the most comfortable option at the moment, buying a home is a permanent and convenient long-term solution.
Buying a home can be stressful and complicated. Therefore, one should read the terms and conditions of all documents carefully before making an official investment in the property. An essential document for buying a home is the property sale contract.
What is a home purchase agreement?
A home purchase agreement or home purchase agreement is essentially a legally binding contract between a buyer and seller that sets out terms and conditions that protect the interests of both the buyer and seller. This document also includes the purchase price that was set and is an excellent resource to help the sale go smoothly. To make things easier for homebuyers, here is a list of the five important items to include in the agreement.
1) Compensation clause
This is a critical condition that the seller and buyer include as a security measure to avoid any potential loss or damage. With so many people involved in buying and selling real estate, sometimes legal issues are inevitable. Therefore, the seller and the buyer carefully formulate this clause and all possible scenarios that could cause possible harm; include.
2) Penalty clause
The penalty clause is another important clause that is binding on both the buyer and seller. Since the purchase of the property is a matter of land and money for both parties, it is only fair that a fine amount be applied to everyone who withdraws from the deal for any reason.
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3) The right to cancel the agreement
After the penalty clause is discussed, the “right to cancel” is a requirement for home buyers. As a buyer, it is essential that you reserve the right to withdraw from the transaction under certain circumstances without incurring financial penalties for doing so. Some of these conditions could be as follows:
- a) If the bank loan is not approved.
- b) If the seller does not provide the legal or legal documents for the property.
- c) If the seller did not present all the legal documents at the time of granting the deed of sale.
- d) If the buyer finds a default in the property before granting the deed of sale.
4) Unpaid installments
Sometimes it happens that a person who previously owned the property borrowed it. Therefore, it is imperative that the home buyer ensures through the purchase agreement that the seller will pay all fees owed relating to the property prior to the date of registration.
5) Special condition
A special clause is a unique clause that every home buyer must include in the purchase agreement. This clause talks about certain special conditions and what the seller and buyer will do if they occur. For example: indicate that the deposit amount is not due until a few days after the completion of standard arrangements such as pest inspection and building approval.
For the common man, owning a home is one of the important milestones in life. When it comes to buying your dream home, it is imperative that one not forget the little things while keeping the big picture in mind. Another way to always ensure that you avoid legal or construction related issues on the property is to choose a trusted builder, who not only has a positive reputation in the market but also provides durable, sustainable and sophisticated homes that fit your budget.